APA Earnings Prediction
The chart below shows how APA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, APA sees a +3.54% change in stock price 10 days leading up to the earnings, and a -2.06% change 10 days following the report. On the earnings day itself, the stock moves by -0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
APA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.71B
25.15%
7.15%
Gross Margin
44.36%
-19.90%
-8.42%
Operating Margin
32.85%
-24.52%
-8.93%
Net Margin
15.67%
-81.78%
-385.43%
EPS
0.96
-83.28%
-260.00%
No Data Available
APA Earnings Analysis
APA Corp (US) Corporation (APA.O) Earnings Conference Call
Positive
Investment Grade Credit Rating: APA Corporation achieved a BBB- credit rating from S&P, marking its status as investment grade with all three rating agencies.
Free Cash Flow Distribution: In 2024, APA generated $841 million in free cash flow, returning 71% to shareholders through dividends and share repurchases.
Production Volume Exceeds Guidance: The company delivered production volumes above guidance in all operating regions during Q4 2024, resulting in $420 million of free cash flow for the quarter.
Operational Efficiency Improvement: APA's acquisition of Callon has led to significant operational efficiencies, reducing breakeven oil prices from $78 per barrel to $61 per barrel in 2024.
Rig Program and Budget: The company expects to run an eight-rig program in the Permian and a 12-rig program in Egypt for 2025, with a combined capital budget of $2.5 billion to $2.6 billion, reflecting a more than 20% year-over-year reduction in development capital in the Permian.
GranMorgu Project Investment Decision: In Suriname, APA reached a final investment decision for the GranMorgu project, with first oil expected in 2028 and a capacity of 220,000 barrels of oil per day.
Gas Production Growth Initiative: The company initiated a gas-focused drilling program in Egypt, expecting year-over-year gas production growth for the first time in over a decade.
Gas Trading Gains: APA's gas trading activities generated a net gain of nearly $0.5 billion in 2024, with expectations for a similar performance in 2025, anticipating a combined net gain of $600 million for the year.
Negative
Increased Depreciation Expenses: Higher depreciation expenses due to accelerated depreciation at Alpine High, resulting in a significant write-off of reserves.
Lease Operating Expense Increase: Increased lease operating expenses, slightly above guidance, primarily due to an extra North Sea cargo lifting.
Net Contingent Liability Increase: A $190 million increase in net contingent liability related to the Fieldwood properties, indicating ongoing cost management challenges.
Cost Management Challenges: Despite a strong free cash flow generation, the company is still facing challenges in managing costs effectively, with a focus on future cost reduction initiatives.
G&A Expense Increase Anticipation: The anticipated increase in G&A expenses for 2025, despite overall overhead costs decreasing, due to allocation methodology and long-term incentive compensation impacts.
APA FAQs
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APA Earning Call Sentiment
APA Corporation (APA) Q4 2024 Earnings Call Transcript
APA.O
2.99%Positive
The earnings call presents a mixed picture: strong financial performance with increased net income and free cash flow, alongside shareholder returns through dividends and buybacks. However, concerns arise from contingent liabilities, regulatory issues in Egypt, and unclear guidance on cost-cutting measures. The Q&A session adds to uncertainties, especially regarding cost management and regulatory challenges. While strategic initiatives show promise, the lack of clarity in management responses tempers the overall sentiment, resulting in a neutral outlook.
