APA (APA) Q4 2024 earnings summary

Executive summary

• Achieved significant portfolio transformation in 2024, focusing on the Permian Basin and Egypt as core assets, advancing Suriname development, and completing the Callon acquisition and Central Basin Platform asset sale.

• Permian Basin accounted for 75–78% of adjusted production, reflecting a focused unconventional position and improved economics in Egypt after renegotiated terms.

• Reached final investment decision for Suriname Block 58 (Gran Morgu Phase 1), with first oil expected in 2028 and significant long-term upside.

• Upgraded to investment grade by all three rating agencies, with S&P raising the rating to BBB- in October 2024.

• Free cash flow per share is projected to more than double by 2028, driven by cost reductions, share repurchases, and Suriname project growth.

Financial highlights

• Reported Q4 2024 consolidated net income of $354 million ($0.96 per diluted share) under GAAP; adjusted Q4 net income was $290 million ($0.79 per share).

• Full-year 2024 net income was $804 million ($2.27 per diluted share); adjusted earnings $1.3 billion ($3.77 per diluted share).

• Q4 2024 free cash flow was $420 million, the highest quarterly figure in 2024; full-year free cash flow totaled $841 million.

• Returned 71% of 2024 free cash flow to shareholders via $353 million in dividends and $246 million in share repurchases.

• Adjusted EBITDAX for Q4 2024 was $1.6 billion; full-year adjusted EBITDAX was $5.9 billion.

Outlook and guidance

• 2025 capital budget set at $2.5–$2.6 billion, including $2.2–$2.3 billion for development, $200 million for Suriname, and $100 million for exploration (mainly Alaska).

• 2025 adjusted production expected at 396,000 BOE/d, up 3% from 2024, with U.S. oil volumes guided at 125,000–127,000 bpd and Egypt adjusted production to grow slightly.

• Permian development capital reduced by over 20% year-over-year (adjusted for Callon Q1 spend), with 7% production growth planned for 2025.

• Cost-saving initiatives targeting $350 million in annualized run-rate savings by 2027, with $100–$125 million run-rate savings by end of 2025.

• Committed to returning at least 60% of free cash flow to shareholders.