Q3 2024 APA Corp (US) Earnings Call Transcript
Key Points
- APA Corp (APA) achieved strong third-quarter results, exceeding production guidance while keeping capital and costs below expectations.
- The company announced the sale of noncore Permian properties for $950 million, expected to close in December, which will aid in debt reduction.
- APA Corp (APA) received a credit rating upgrade from Standard & Poor's, achieving investment-grade status at all three major rating agencies.
- The company successfully integrated Callon and captured associated cost synergies, contributing to cash flow resilience.
- APA Corp (APA) reached a final investment decision on its first offshore development project in Suriname, with promising economics and future production growth potential.
- APA Corp (APA) reported a consolidated net loss of $223 million for the third quarter, primarily due to a $571 million after-tax impairment of North Sea and noncore Permian assets.
- The company decided to cease all production in the North Sea by December 31, 2029, due to new emissions regulations and financial impacts, leading to significant asset abandonment costs.
- There is uncertainty regarding the impact of the new gas price agreement in Egypt on free cash flow, as specific details were not disclosed.
- APA Corp (APA) plans to curtail some US production due to weaker-than-expected Waha gas prices, impacting fourth-quarter production estimates.
- The company's full-year capital budget increased to $2.75 billion, reflecting higher spending in Suriname and Alaska, which may pressure cash flow.
Good day, everyone, and thank you for standing by. Welcome to APA Corporation's third-quarter 2024 financial and operational results. (Operator Instructions) Please be advised that today's conference is being recorded.
Now I will pass the call over to the Vice President of Investor Relations, Gary Clark. Please go ahead.
Good morning, and thank you for joining us on APA Corporation's third quarter 2024 financial and operational results conference call. We will begin the call with an overview by CEO John Christmann; Steve Riney, President and CFO, will then provide further color on our results and outlook. Also on the call and available to answer your questions are Tracey Henderson, Executive Vice President of Exploration; and Clay Bretches, Executive Vice President of Operations. Our prepared remarks will be less than 20 minutes in length with the remainder of the hour allotted for Q&A. In conjunction with yesterday's press release, I hope you've had the opportunity to review our financial and operational supplement,
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