Apa Corporation · NASDAQ:APA
Apa — Q1 2024 Earnings Presentation
32 slides from Apa's earnings presentation, May 2, 2024
Slide 1: First-Quarter 2024 Financial and Operational Supplement
First-Quarter 2024 Financial and Operational Supplement May 1, 2024
Slide 2: Notice to Investors
Notice to Investors Certain statements in this earnings supplement contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including, without limitation, expectations, beliefs, plans, and objectives r
Slide 3: 1Q 2024 Key Metrics
1Q 2024 Key Metrics 1Q 2024 Reported Production 389 Mboe/d Adjusted Production(1) 320 Mboe/d Cost Incurred in Oil and Gas Property $717 Million Upstream Capital Investment(2) $568 Million Net Cash Provided by Operating Activities $368 Million Adjusted EBITDAX(2) $1,235 Million Free Cash Flow(2) $99
Slide 4: APA Strategic Framework
APA Strategic Framework Remain Build and Maintain Deliver Top Committed to Grow a High- Financial Operational Oil and Gas Quality Portfolio Discipline Performance Oil and gas production APA seeks a diverse APA manages costs, Across safety, is APA’s core and balanced portfolio protects the balance ex
Slide 5: Recent Highlights
Recent Highlights Continued Permian strength drove Returned $176 Million to shareholders in U.S. oil volumes above guidance 1Q24 through dividends and share buybacks Adjusted production(1)(2) of 320 MBOE/D Repurchased $100 Million of stock at an Adjusted oil production(1)(2) of 156 MBO/D average pri
Slide 6: Callon Integration and Guidance
Callon Integration and Guidance APA CORPORATION 6
Slide 7: Callon Acquisition Enhances Permian Oil Leverage
Callon Acquisition Enhances Permian Oil Leverage 4Q23 APA 4Q24 % Standalone Estimate Change First APA planned, drilled, and completed U.S. Oil Production (Mbo/d) 84 152 81% wells on Callon legacy acreage expected to be placed on production in 4Q24 Permian Rig Count 6 ~10 67% Net Permian Unconvention
Slide 8: Increasing Callon Cost Synergy Estimates by 50%
Increasing Callon Cost Synergy Estimates by 50% Estimated Annual Run-Rate Savings Initial Estimate Updated Estimate Commentary / Timing (Jan-2024) (May-2024) – Additional savings identified post-close Overhead ~$55 million ~$70 million – Expect to realize ~75% of run-rate savings by the end of 2Q24
Slide 9: Guidance
Guidance FY 2024 guidance reflects APA standalone for 1Q24; includes Callon for 2Q24-4Q24 2Q 2024 FY 2024 Commentary Production (Mboe/d) United States……………………………………………………………. 303 293 Reflects curtailments of ~50 MMcf/d of gas & ~5 mb/d of NGL in 2Q24 Egypt (Reported)(1)……………………………………………………. 128 130
Slide 10: 1Q 2024 Asset Update
1Q 2024 Asset Update APA CORPORATION 10
Slide 11: Differentiated Large Cap Independent with Diverse Asset Base
Differentiated Large Cap Independent with Diverse Asset Base NORTH 1Q 2024 Global Portfolio ALASKA SEA Global PERMIAN EGYPT 389,157 BOE/D 51% / 15% / 34% Reported Production Oil / NGL / Gas SURINAME 33 Gross, 33 Net 23 Development Drilled & Completed Wells Average Rigs Exploration URUGUAY United Sta
Slide 12: U.S. Update
U.S. Update Asset Highlights 1Q 2024 Asset Stats 214,050 BOE/D ⎻ Permian program continues to deliver strong results Reported Production 39% / 26% / 35% ⎻ Asset integration underway; currently running 11 Permian rigs Oil / NGL / Gas ⎻ 2Q and 3Q Callon legacy wells will primarily reflect changes APA
Slide 13: Egypt Update
Egypt Update Asset Highlights 1Q 2024 Asset Stats 135,140 BOE/D Reported Production ⎻ Drilling program performed in line with first-quarter expectations 64% / 0% / 36% Oil / NGL / Gas ⎻ Average drilling days, well connection timing and oil IP’s in line with plan 23 Gross, 23 Net Drilled & Completed
Slide 14: North Sea Update
North Sea Update Asset Highlights 1Q 2024 Asset Stats 39,967 BOE/D Reported Production ⎻ First-quarter production slightly below guidance, impacted by a decrease 75% / 3% / 22% Oil / NGL / Gas in average facility run time in March 0 Gross, 0 Net Drilled & Completed Wells ⎻ Platform maintenance turna
Slide 15: Exploration Portfolio Update
Exploration Portfolio Update ALASKA Suriname (Block 58) ⎻ Targeting FID by year-end 2024 Alaska (Lagniappe JV) ⎻ King Street #1 confirmed working petroleum system in APA’s JV leasehold; discovered high-quality oil in two target zones ⎻ Sockeye #1 and Voodoo #1 unable to reach SURINAME target objecti
Slide 16: Appendix
APA Corporation Appendix APA CORPORATION | 16
Slide 17: Cash Return Summary
Cash Return Summary 2021 2022 2023 1Q24 Total Shares Repurchased (MM) 31.2 36.2 8.7 3.0 79.1 Average Stock Repurchase Price $27.14 $39.34 $37.81 $33.27 $34.12 Share Repurchases ($MM) $847 $1,423 $329 $100 $2,699 Dividends ($MM) $52 $207 $308 $76 $643 Total Cash Return ($MM) $899 $1,630 $637 $176 $3,
Slide 18: Upstream Capital Investment
Upstream Capital Investment 1Q 2024 ($ in millions) United States* $419 Egypt (excluding noncontrolling interest) $137 North Sea $6 Suriname $6 Upstream Capital Investment Total $568 *United States capital includes ~$70 million of Alaska exploration spend Note: Please refer to the glossary of refere
Slide 19: Egypt Production Detail
Egypt Production Detail 4Q 2023 1Q 2024 Oil Gas Oil Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 141,953 466,403 219,687 137,972 457,248 214,180 Reported Production 92,365 309,814 144,001 86,768 290,227 135,140 % Gross 65% 66% 66% 63% 63% 63% Less: Tax Barrels 24,559 84,495 38,
Slide 20: Glossary of Referenced Terms
⎻ Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations. Excludes capital investment for property acquisitions, capitalized Glossary of interest, non-cash asset retirement additi
Slide 21: APA Exploration Portfolio
APA Exploration Portfolio APA CORPORATION 21
Slide 22: Suriname Update
Suriname Update Block 58 (TotalEnergies Operated) ⎻ Announced Oil Hub Project at Sapakara and Krabdagu in Fall of 2023 ⎻ FEED study progressing on 200 MBO/D FPSO project ⎻ Underpinned by an estimated 700 million barrels of recoverable oil resource at Sapakara and Krabdagu ⎻ Targeting FID by year-end
Slide 23: Alaska Update
Alaska Update Exploration Joint Venture (North Slope, Alaska) ⎻ Established Joint Venture between APA (50%), Lagniappe Alaska, LLC (25%) and Santos Ltd (25%) ⎻ 275,000 gross acre position situated on state lands Note: Lagniappe Alaska, LLC is a subsidiary of Armstrong Oil & Gas. APA CORPORATION 23
Slide 24: Uruguay Update
Uruguay Update OFF-6 (100% Working Interest, APA Operated) ⎻ 16,500 km2 (~4.1 million acres) ⎻ Exploration well obligation OFF-4 (50% Working Interest, APA Operated) ⎻ Working interest partner with Shell (50% / 50%) ⎻ 10,000 km2 (~2.5 million acres) ⎻ Planning underway to conduct seismic acquisition
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations APA CORPORATION 25
Slide 26: Non-GAAP Reconciliation: Adjusted Earnings
Non – GAAP Reconciliation Adjusted Earnings Reconciliation of Income Attributable to Common Stock to Adjusted Earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Commo
Slide 27: Non-GAAP Reconciliation: Adjusted EBITDAX
Non – GAAP Reconciliation Adjusted EBITDAX Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator
Slide 28: Non-GAAP Reconciliation: Free Cash Flow
Non – GAAP Reconciliation Cash Flow Before Changes in Operating Assets & Liabilities and Free Cash Flow Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities and Free Cash Flow Cash flows from operations before ch
Slide 29: Non-GAAP Reconciliation: Segment Cash Flows
Non – GAAP Reconciliation Segment Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from operations before changes in operating assets and liabilities is a non-GAAP financial m
Slide 30: Non-GAAP Reconciliation: Net Debt
Non – GAAP Reconciliation Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by
Slide 31: Non-GAAP Reconciliation: Upstream Capital Investment
Non – GAAP Reconciliation Upstream Capital Investment Reconciliation of Costs Incurred to Upstream Capital Investment Management believes the presentation of upstream capital investments is useful for investors to assess APA's expenditures related to our upstream capital activity. We define capital
Slide 32: apacorp.com
APA Corporation apacorp.com