APA Corp Q2 2024 Filing: Financials and Operations

TL;DR

APA Corp Q2 2024 10-Q filed. Financials and ops data for H1 2024 vs H1 2023.

AI Summary

APA Corp. reported its financial results for the second quarter of 2024, ending June 30, 2024. The company's filing details its operational performance and financial position, with specific data points related to oil and gas production and sales for the periods ending June 30, 2024, and June 30, 2023.

Why It Matters

This filing provides investors and analysts with APA Corp's latest financial performance and operational data, crucial for evaluating the company's current standing and future prospects in the energy sector.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company in the volatile oil and gas industry, which inherently carries medium risk.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the specific quarter for which the 10-Q filing provides data.)
• 2024-06-30 — End of Fiscal Period (Marks the conclusion of the financial reporting period covered by this 10-Q.)

Key Players & Entities

• APA Corp (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period for the 10-Q
• 20240802 (date) — Filing date of the 10-Q
• 713.296.6000 (phone_number) — APA Corp's business phone number

FAQ

Key Financial Figures

• $0.625 — ange on which registered Common Stock, $0.625 par value APA Nasdaq Global Select Mark

Filing Documents

• apa-20240630.htm (10-Q) — 1845KB
• apa2024q2-exhibit311.htm (EX-31.1) — 11KB
• apa2024q2-exhibit312.htm (EX-31.2) — 11KB
• apa2024q2-exhibit321.htm (EX-32.1) — 9KB
• 0001784031-24-000013.txt ( ) — 9301KB
• apa-20240630.xsd (EX-101.SCH) — 56KB
• apa-20240630_cal.xml (EX-101.CAL) — 107KB
• apa-20240630_def.xml (EX-101.DEF) — 262KB
• apa-20240630_lab.xml (EX-101.LAB) — 687KB
• apa-20240630_pre.xml (EX-101.PRE) — 468KB
• apa-20240630_htm.xml (XML) — 1664KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. FINANCIAL STATEMENTS 1 1 2 3 CONSOLIDATED BALANCE SHEET 4 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 43 4. CONTROLS AND PROCEDURES 45

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. LEGAL PROCEEDINGS 46 1A. RISK FACTORS 46 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 46 5. OTHER INFORMATION 46 6. EXHIBITS 47

FORWARD-LOOKING STATEMENTS AND RISKS

FORWARD-LOOKING STATEMENTS AND RISKS This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts included or incorporated by reference in this report, including, without limitation, statements regarding the Company's future financial position, business strategy, budgets, projected revenues, projected costs, plans and objectives of management for future operations and capital returns framework, the anticipated benefits of the merger (the Callon acquisition) between the Company and Callon Petroleum Company (Callon), the anticipated impact of the Callon acquisition on the combined company's business and future financial and operating results, and the anticipated financial and operational impact and timing of the expected synergies from the Callon acquisition, are forward-looking statements. Such forward-looking statements are based on the Company's examination of historical operating trends, the information that was used to prepare its estimate of proved reserves as of December 31, 2023, and other data in the Company's possession or available from third parties. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "expect," "intend," "project," "estimate," "anticipate," "plan," "believe," "continue," "seek," "guidance," "goal," "might," "outlook," "possibly," "potential," "prospect," "should," "would," or similar terminology, but the absence of these words does not mean that a statement is not forward looking. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable under the circumstances, it can give no assurance that such expectations will prove to have been correct. Important factors that could

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS APA CORPORATION AND SUBSIDIARIES (Unaudited) For the Quarter Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 (In millions, except share data) REVENUES AND OTHER: Oil, natural gas, and natural gas liquids production revenues (1) $ 2,201 $ 1,652 $ 3,949 $ 3,421 Purchased oil and gas sales (1) 342 144 545 383 Total revenues 2,543 1,796 4,494 3,804 Derivative instrument gains (losses), net ( 3 ) 51 ( 7 ) 104 Gain on divestitures, net 276 5 283 6 Loss on previously sold Gulf of Mexico properties ( 17 ) — ( 83 ) — Other, net ( 7 ) 109 8 77 2,792 1,961 4,695 3,991 OPERATING EXPENSES: Lease operating expenses (1) 460 361 798 682 Gathering, processing, and transmission (1) 121 78 205 156 Purchased oil and gas costs (1) 210 131 373 347 Taxes other than income 78 50 135 102 Exploration 71 43 219 95 General and administrative 85 72 178 137 Transaction, reorganization, and separation 115 2 142 6 Depreciation, depletion, and amortization 588 367 1,018 699 Asset retirement obligation accretion 36 29 76 57 Impairments — 46 — 46 Financing costs, net 100 82 176 154 1,864 1,261 3,320 2,481 NET INCOME BEFORE INCOME TAXES 928 700 1,375 1,510 Current income tax provision 285 254 585 600 Deferred income tax provision (benefit) 23 ( 16 ) ( 42 ) 122 NET INCOME INCLUDING NONCONTROLLING INTERESTS 620 462 832 788 Net income attributable to noncontrolling interest 79 81 159 165 NET INCOME ATTRIBUTABLE TO COMMON STOCK $ 541 $ 381 $ 673 $ 623 NET INCOME PER COMMON SHARE: Basic $ 1.46 $ 1.24 $ 2.00 $ 2.01 Diluted $ 1.46 $ 1.23 $ 2.00 $ 2.01 WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 371 308 337 310 Diluted 372 309 337 310 (1) For transactions with Kinetik prior to the Company's sale of its remaining shares of Kinetik Class A Common Stock and the resignation of the Company's designated director from the Kinetik board of directors, refer to N

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) These consolidated financial statements have been prepared by APA Corporation (APA or the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods, on a basis consistent with the annual audited financial statements, with the exception of any recently adopted accounting pronouncements. All such adjustments are of a normal recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10-Q should be read along with the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which contains a summary of the Company's significant accounting policies and other disclosures. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of June 30, 2024, the Company's significant accounting policies are consistent with those discussed in Note 1—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company's financial statements for prior periods may include reclassifications that were made to conform to the current-year presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of APA and its subsidiaries after elimination of intercompany balances and transactions. The Company's undivided interests in oil and gas exploration and production ventur

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View this 10-Q filing on SEC EDGAR