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 +3.93% change in stock price 10 days leading up to the earnings, and a +1.45% change 10 days following the report. On the earnings day itself, the stock moves by -0.60%. 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
2.53B
9.66%
-0.47%
Gross Margin
48.44%
-13.00%
-4.14%
Operating Margin
36.07%
-12.92%
-1.37%
Net Margin
-5.49%
-122.83%
-122.52%
EPS
-0.60
-140.27%
-141.38%
No Data Available
APA Earnings Analysis
APA Corporation Common Stock Corporation (APA.O) Earnings Conference Call
Positive
Cash Flow Resilience: 1. Strong Cash Flow Generation: APA Corporation reported an adjusted net income of $370 million or $1 per share for Q3 2024, demonstrating resilience in cash flow despite weaker oil prices.
Asset Sale Announcement: 2. Successful Asset Sales: The company announced the sale of non-core Permian properties for $950 million, expected to close in December, enhancing liquidity and capital allocation.
Production Capacity Expansion: 3. Increased Production Capacity: The GranMorgu project in Suriname has a production capacity of 220,000 barrels per day, with a favorable per BOE capital plus OpEx cost of $19 at a 15% IRR at $60 per barrel.
Credit Rating Improvement: 4. Credit Rating Upgrade: APA achieved investment-grade status at all three major rating agencies, reflecting improved financial stability and creditworthiness.
Cost Reduction Strategies: 5. Cost Management Initiatives: The company expects a 10% to 15% reduction in per unit LOE, G&A, GPT, and interest costs year-over-year, driven by synergies from the Callon acquisition and portfolio rationalization.
Negative
Net Loss Reported: 1. Significant Net Loss: APA Corporation reported a consolidated net loss of $223 million or $0.60 per diluted common share for Q3 2024, primarily due to a $571 million after-tax impairment of North Sea and non-core Permian assets.
Asset Value Write-Down: 2. Impairment Charges: The company incurred a $571 million after-tax impairment charge, with $325 million specifically related to North Sea assets, indicating a substantial write-down of asset value.
Abandonment Obligations Increase: 3. Increased Abandonment Obligations: The net after-tax present value of abandonment obligations for North Sea assets increased by $116 million, now totaling $1.2 billion, which will impact future cash flows.
Production Impact Forecast: 4. Production Curtailments: APA expects a production impact of 20,000 to 25,000 BOE due to planned production curtailments in response to weaker-than-expected Waha pricing, indicating challenges in maintaining production levels.
North Sea Production Cessation: 5. Declining North Sea Operations: The decision to cease all production in the North Sea by December 31, 2029, reflects a strategic shift due to the economic unviability of continued operations, leading to a significant reduction in future revenue streams.
APA FAQs
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APA Earning Call Sentiment
APA Corporation (APA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
APA.O
-0.64%Positive
The earnings call summary highlights several positive factors: increased free cash flow, strategic initiatives to enhance shareholder value, and significant synergies from the Callon acquisition. Despite a net loss, the company reported strong adjusted net income and resilience in cash flow. The Q&A section reveals management's confidence in project outlooks and synergies, though some details were withheld. Overall, the positive guidance on production and cash flow, coupled with strategic initiatives, suggests a positive stock price movement over the next two weeks.
