Q2 2024 APA Corp (US) Earnings Call Transcript
Key Points
- APA Corp (APA) reported higher-than-expected production across all three operational areas in Q2 2024.
- Oil volumes increased by 67% from the first quarter, reaching 139,500 barrels per day.
- The company achieved significant cost savings from the Callon acquisition, raising the estimate of annual synergies from $225 million to $250 million.
- APA Corp (APA) is on track for FID in Suriname by year-end 2024, with first oil expected in 2028.
- The company is realizing greater-than-expected cost savings and has a clear pathway to improving capital efficiency in its assets.
- The company faces potential volume impacts in Egypt due to a decrease in rig count.
- There are ongoing maintenance and turnaround activities in the North Sea, which may affect production volumes in Q3 2024.
- APA Corp (APA) is subject to the U.S. alternative minimum tax, introducing new guidance for current U.S. tax accruals.
- The company has experienced significant curtailments in natural gas and NGL production, impacting overall production volumes.
- There is uncertainty regarding the long-term inventory and productivity improvements from the Callon acquisition, as the integration process is still in early stages.
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-- for our financial and operational supplement, which can be found on our Investor Relations website at investor dot EAPAC. corp.com. Please note that we may discuss certain non-GAAP financial measures. A reconciliation of the differences between these measures and the most directly comparable GAAP financial measures are supplemental information provided on our website consistent with previous reporting practices.
Adjusted production numbers cited in today's call are adjusted to exclude noncontrolling interest in Egypt and Egypt tax barrels. I'd like to remind everyone that today's discussion will contain forward-looking estimates and assumptions, views and reasonable expectations. However, a number of factors could cause actual results to differ materially from what we discuss today's call. A full disclaimer is located with the supplemental information on our website.
Please note that the talent acquisition closed on April
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