With an $11.97 billion cap, APA Corporation (APA) explores, develops, and produces oil and gas in the United States, Egypt, and the United Kingdom. It operates…
gathering, processing, and transmission assets in West Texas and owns four Permian-to-Gulf Coast pipelines.
APA delivered solid second-quarter results. The company’s diversified, unhedged portfolio largely benefitted from high prices across all three product streams. And this also helped APA to manage its spending categories, such as capital investment, operating costs, and general & administrative, well despite supply chain disruptions and overall cost environment.
The company’s production in the second quarter stood at 385,000 barrels of oil equivalent (BOE) per day.
On August 23, APA announced the first discovery at Baja-1 in Block 53 offshore Suriname. Baja-1 got drilled to a depth of 5,290 meters and encountered 34 meters of net oil pay in a single interval with the Campanian.
“Our success at Baja marks the 6th oil discovery we have participated in offshore Suriname and the first on Block 53. This result confirms our geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of Blocks 53 and 58,” said John J. Christmann, APA’s CEO and President.
On August 3, the company announced that it bought West Texas oil-producing land for $505 million during the second quarter, strengthening its position in the Delaware portion of the Permian shale basin. The assets that the company acquired are expected to add production of between 12,000 to 14,000 barrels of oil equivalent per day (BOE) through the rest of this year.
APA has gained 36.4% year-to-date and 16.5% over the past month to close the last trading session at $36.67.
Here is what could influence APA’s performance in the upcoming months:
Solid Financials
For the fiscal 2022 second quarter ended June 30, 2022, APA’s total revenue increased 73.5% year-over-year to $3.05 billion. The company’s adjusted EBITDAX amounted to $1.96 billion, up 93.6% year-over-year. Its net income attributable to common stock grew 193% from the prior-year period to $926 million.
Furthermore, the company’s net income per common share came in at $2.71, registering an increase of 230.5% year-over-year. Cash inflows from operating activities rose…
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