APA(US:APA)2024-08-01 13:41Production and Operations - Reported production of 473,000 barrels of oil equivalent (BOE) per day; adjusted production was 405,000 BOE per day[1] - U.S. oil production increased by 67% from first-quarter 2024 to 139,500 barrels per day, driven by the addition of Callon assets[5] - Egypt adjusted production exceeded guidance by approximately 5% in the second quarter[1] - Oil production in the United States averaged 139,361 barrels per day, a 67% increase from 83,520 barrels per day in the previous quarter[23] - Natural gas production in the United States increased to 510,708 Mcf per day, a 15% rise from 443,737 Mcf per day in the previous quarter[23] - The company achieved a total production volume of 253,649 barrels of oil equivalent per day, a 27% increase from 200,083 barrels per day in the previous quarter[23] - Total oil volume increased to 209,046 barrels per day for the quarter ended June 30, 2024, a 34% increase from the previous quarter and a 36% increase year-over-year[25] - Natural gas volume reached 695,746 Mcf per day, reflecting a 9% increase from the previous quarter and a 7% increase compared to the same quarter last year[25] Financial Performance - Net income attributable to common stock was $541 million, or $1.46 per diluted share; adjusted earnings were $434 million, or $1.17 per diluted share[2] - Total revenues for the quarter ended June 30, 2024, were $2,543 million, a 42% increase from $1,796 million in the same quarter of 2023[22] - The company reported a net income attributable to common stock of $541 million for the quarter, compared to $381 million in the same quarter last year, representing a 42% increase[22] - The company declared a dividend of $0.25 per common share, consistent with the previous quarter[22] - Total operating expenses for the quarter were $1,864 million, up from $1,261 million in the same quarter of 2023[22] - The company reported a derivative instrument loss of $3 million for the quarter, compared to a gain of $51 million in the previous quarter[22] - Net cash provided by operating activities was $877 million for the quarter ended June 30, 2024, compared to $1,000 million for the same quarter in 2023[29] - Free cash flow for the quarter ended June 30, 2024, was $103 million, compared to $94 million for the same quarter in 2023, indicating a slight increase[35] - Non-GAAP earnings for the quarter were $636 million, down from $832 million year-over-year, reflecting a decline of 23.5%[43] Capital Expenditures and Investments - Capital investment for the second quarter was $839 million, significantly below guidance[6] - Full-year guidance for net gain on third-party oil and gas purchases and sales raised to $350 million, an increase of $120 million from previous guidance[5] - Integration of Callon acquisition is ahead of schedule, with revised annual cost synergies estimate increased to $250 million[1] - Upstream capital investment including noncontrolling interest in Egypt for the quarter was $904 million, compared to $583 million in the same quarter of 2023[35] - Proceeds from asset divestitures amounted to $702 million for the quarter ended June 30, 2024, compared to $7 million in the same quarter last year[29] Debt and Assets - Total assets increased to $20,195 million as of June 30, 2024, compared to $15,244 million at the end of 2023[30] - Long-term debt rose to $6,741 million as of June 30, 2024, up from $5,186 million at the end of 2023[30] - Total debt as of June 30, 2024, was $6,743 million, an increase from $5,180 million as of March 31, 2024[40] - Net debt as of June 30, 2024, stood at $6,583 million, compared to $5,078 million as of March 31, 2024, indicating a rise in leverage[40] Earnings Per Share and Taxation - For the quarter ended June 30, 2024, the company reported a diluted EPS of $1.67, compared to $1.49 for the same quarter in 2023, representing a 12.1% increase[43] - The diluted EPS attributable to common stock for the six months ended June 30, 2024, was $2.00, down from $2.01 in the same period of 2023, showing stability in earnings despite challenges[43] - The current income tax provision for the quarter was $285 million, compared to $300 million in the previous quarter, reflecting a decrease in tax obligations[38] - The allowance and other tax adjustments for the quarter were $0, while the previous year had adjustments of $30 million, showing a significant change in tax strategy[43] Exploration and Impairments - Exploration expenses totaled $71 million for the quarter ended June 30, 2024, compared to $43 million in the same quarter last year[28] - The company reported exploration expenses of $30 million for the quarter ended June 30, 2024, compared to $15 million for the previous quarter[37] - The company reported unproved leasehold impairments of $10 million for the first half of 2024, compared to $57 million in the same period of 2023, indicating a reduction in impairments[43] Restructuring and Financial Management - The reorganization and separation costs amounted to $115 million for the quarter, compared to $2 million in the same quarter last year, indicating increased restructuring efforts[43] - The company recorded a derivative instrument gain of $5 million for the quarter, contrasting with a loss of $80 million in the same quarter of the previous year, reflecting improved financial management[43] - The equity investment mark-to-market loss was $9 million for the quarter, compared to a loss of $45 million in the same quarter last year, indicating a recovery in investment valuations[43]