(APA, 5.Oct.2023) — APA Corporation (Nasdaq: APA) provided supplemental information regarding certain third-quarter 2023 financial and operational results. This information is intended only to provide additional information regarding current estimates management believes will affect results for the third-quarter 2023. It is provided to assist investors, analysts, and others in formulating their own estimates, and is not intended to be a comprehensive presentation of all factors that will affect third-quarter 2023 results. Actual results and the impact of factors identified here may vary depending on the impact of other factors not identified here and are subject to finalization of the financial reporting process for third-quarter 2023.
Estimated Average Realized Prices – 3Q23 | |||
| Oil (bbl) | NGL (bbl) | Natural Gas (Mcf) | |
| United States | $82.00 | $21.50 | $2.00 |
| International | $88.00 | $50.00 | $4.25 |
| Egypt tax barrels: | 39 MBoe/d |
| Realized gain on commodity derivatives (before tax): | $19mn |
| Dry hole costs (before tax): | $15mn-$20mn |
| Net gain on oil and gas purchases and sales (before tax): Includes gain on natural gas purchased and sold to Cheniere under a contract that commenced Aug. 1 | $17mn |
| General and Administrative Expense*: | $145mn |
* G&A increase relative to 3Q guidance is primarily the result of accruals associated with the increase in APA’s stock price during the quarter
Third-Quarter production commentary
Total Adjusted Production and Adjusted Oil Production are expected to be in the upper half of the company’s guidance range, with performance driven primarily by strength in Permian oil and UK North Sea volumes. Egypt gross oil production was approximately 145 thousand barrels per day, slightly below the company’s guidance for the quarter.
Fourth-Quarter outlook commentary
Production in the UK North Sea is expected to decrease by 10% to 15% from the third quarter, due to unscheduled compressor motor repairs, which will require platform downtime through the end of the year.
Weighted-average shares outstanding
The estimated weighted-average basic common shares outstanding for the third quarter is 308 million. The company repurchased approximately 475,000 shares at an average price of $41.89 per share, during the period.
Third-quarter 2023 earnings call
APA will host a conference call to discuss its third-quarter 2023 results at 10 a.m. Central time, Thursday, Nov. 2. The conference call will be webcast from APA’s website at www.apacorp.com and investor.apacorp.com. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.
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