HOUSTON - APA Corporation (NASDAQ: APA), an oil and gas exploration and production company, has released preliminary financial and operational results for the first quarter of 2024. The company has provided these estimates to assist stakeholders in formulating their expectations and emphasizes that these figures are subject to the completion of the financial reporting process.
During the first quarter, APA experienced a curtailment of approximately 35 million cubic feet per day of U.S. natural gas production, primarily in March, due to low or negative prices at the Waha hub. Additionally, the company voluntarily curtailed an estimated 2,500 barrels per day of natural gas liquids (NGLs).
The company's estimated average realized prices for the quarter were $77.00 per barrel of oil, $25.00 per barrel of NGLs, and $1.40 per thousand cubic feet (Mcf) of natural gas in the United States. Internationally, these prices were higher, with oil at $83.00 per barrel, NGLs at $49.00 per barrel, and natural gas at $3.80 per Mcf.
Noteworthy is the reported net gain on oil and gas purchases and sales before tax, which includes a gain on natural gas purchased and sold to Cheniere, amounting to approximately $40 million. Additionally, the company realized a gain on commodity derivatives before tax of $4 million for the quarter. However, APA also faced dry hole costs, primarily related to exploration in Egypt, projected to be between $22 million and $27 million.
General and administrative expenses for the quarter are anticipated to be around $95 million. The company's production update indicates that APA's Egypt tax barrels averaged 37 thousand barrels of oil equivalent per day (MBoe/d).
In terms of share repurchase, APA bought back 3.0 million shares at an average price of $33.27 per share. The estimated weighted average basic common shares outstanding for the first quarter is 302 million, compared to 306 million in the previous quarter.
APA will discuss these first-quarter results in detail during a conference call scheduled for 10 a.m. Central time on Thursday, May 2, 2024. The call will be webcast on the company's website.
This information is based on a press release statement.
InvestingPro Insights
As APA Corporation (NASDAQ: APA) navigates a complex market environment, real-time data and expert analysis become crucial for investors. According to InvestingPro, APA Corporation's stock has shown a strong return over the last month, with a 13.73% increase in price total return. This performance may be of interest to investors considering the company's recent operational challenges and the volatility in energy prices.
InvestingPro data highlights APA's robust financial metrics, showcasing a P/E ratio of 3.75 and an even more attractive adjusted P/E ratio of 4.33 for the last twelve months as of Q4 2023. These figures suggest a potentially undervalued stock, given the company's profitability. Additionally, APA has demonstrated financial stability by maintaining dividend payments for 54 consecutive years, with a current dividend yield of 2.85%.
For investors seeking more in-depth analysis, the InvestingPro platform offers additional insights. There are currently seven InvestingPro Tips available for APA Corporation, which can be accessed at https://www.investing.com/pro/APA. These tips provide a deeper understanding of the stock's performance and potential investment value. Moreover, users can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.
The upcoming earnings date on May 1, 2024, will be a significant event for the company, providing further clarity on its financial health and operational efficiency. With the InvestingPro Fair Value estimate at $41.75, investors will be watching closely to see if APA's performance aligns with these projections.
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