APA Corporation Achieves Record-Breaking Milestones in Q4 2024
APA Corporation has made significant strides in its Q4 2024 financial and operational results, according to the company's recent conference call transcript. The corporation, led by CEO John Christmann, has achieved a number of notable milestones, solidifying its position as a leading player in the energy industry.
In the Permian Basin, APA has continued to strategically refine its position through the acquisition of Cowen and the sale of non-core assets. This strategic shift has driven over 75% of the company's current adjusted production and provided a more predictable and steady business model. As reported in the supplement released yesterday, APA's scale in the Permian now rivals and surpasses many of its U.S. independent shale peers.
In Egypt, APA successfully returned to normalized workover and recompletion backlogs while improving PDP decline through waterflood activities. These efforts have provided a more predictable oil production profile, increasing the overall efficiency and longevity of operations. Additionally, the company signed a new gas price agreement, creating potential for significant additional drilling opportunities with returns on par with oil.
Another notable achievement was reached in Suriname, where APA's partner Total announced a final investment decision (FID) on the GranMorgu project, which has a capacity of 220,000 barrels of oil per day and first oil expected in 2028. As reported by John Christmann, APA's capital spending exposure for the project will be very manageable.
APA also highlighted the value of its gas trading activities, realizing an annual net gain of nearly $0.5 billion in 2024. The company believes that 2025 will be a similarly strong year at current strip prices.
In addition to these accomplishments, APA continued to deliver on its capital return framework, returning 71% of free cash flow through $353 million in dividends and $246 million in share repurchases in 2024. This includes $100 million of repurchases executed during the fourth quarter at a price just under $22 per share.
APA's CEO John Christmann emphasized that the company believes its shares offer compelling value, and they will be inclined to lean into the buyback program at such prices.
