Key highlights

• Reported production of 412,000 barrels of oil equivalent (BOE) per day; adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 340,000 BOE per day; 
• Year-over-year U.S. oil volumes increased 16% driven by operating efficiencies and strong well performance in the Permian Basin; 
• Confirmed an estimated recoverable resource of 700 million barrels of oil at Sapakara and Krabdagu discoveries on Block 58, offshore Suriname; 
• Generated net cash from operating activities of $764 million and free cash flow of $307 million during the quarter; and
• In the first three quarters of 2023, APA returned 65% of free cash flow to shareholders through dividends and buybacks, including the repurchase of 5.5 million shares at an average price of $37.91.

APA Corporation has reported its financial and operational results for the third quarter of 2023. 

APA reported net income attributable to common stock of $459 million, or $1.49 per diluted share. When adjusted for items that impact the comparability of results, APA’s third-quarter earnings were $410 million, or $1.33 per diluted share. Net cash provided by operating activities was $764 million, and adjusted EBITDAX was $1.4 billion. The company generated $307 million in free cash flow during the quarter.

“Good execution and strong well performance in the Permian Basin were the primary drivers of APA’s third-quarter results,” said John J. Christmann IV, APA’s CEO and president. “Adjusted global oil production exceeded the high-end of our guidance range and was up by 20% year over year. In Suriname, our appraisal efforts delivered a very positive outcome, confirming estimated recoverable oil resources of 700 million barrels for Sapakara and Krabdagu.”

Third-Quarter Summary    

Third-quarter reported production was 412,000 BOE per day. Adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 340,000 BOE per day. 

APA delivered sequential quarterly oil growth in each of its operating areas. Total oil volumes increased by 5%, led by 10% growth in the U.S. In Egypt, gross oil production increased by 3%, and in the North Sea, oil production was up 2%. 

In Suriname, APA’s partner TotalEnergies announced plans to proceed with Front End Engineering and Design (FEED) work for a 200,000 barrel per day FPSO. A considerable amount of planning, engineering and technical work is being directed toward this project, targeting Final Investment Decision (FID) before the end of 2024. 

2023 Fourth-Quarter Capital and Production Guidance

The company expects total fourth-quarter production will be down slightly from the third quarter, due to facility downtime in the North Sea and a decline in natural gas volumes across the portfolio, as previously disclosed.

APA’s upstream capital investment in the fourth quarter is expected to be approximately $500 million. This reflects increased activity in the Permian Basin, where the company is picking up a sixth drilling rig. 

ESG Progress

APA has made significant progress on its environmental, social and governance goals recently achieving a key 2023 target to convert more than 2,000 methane-emitting pneumatic devices to air driven or non-venting valves, thereby reducing methane emissions. This was delivered three months ahead of schedule and will result in an estimated annualized methane reduction of 1,000 tonnes or 25,000 tonnes of carbon dioxide equivalents. 

KeyFacts Energy: APA US onshore country profile