APA Corp. Second Quarter 2022 Results; Adds Third Permian Rig

APA Corp. announced its financial and operational results for the second-quarter 2022.

Highlights:

• Reported production of 385,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 305,000 BOE per day;

• Generated net cash from operating activities of $1.535 billion, adjusted EBITDAX of $1.957 billion, and quarterly free cash flow of $814 million, more than double the same period in the prior year;

• Repurchased 7 million shares of APA common stock during the quarter at an average price of $41.59 per share, followed by an additional 6.9 million shares repurchased in July at an average price of $33.87 per share;

In the U.S., the company added a third rig in the Permian Basin, which is now drilling at Alpine High.

Internationally, the company increased gross oil production in Egypt by more than 7,000 BOE per day from the first quarter and achieved a 92% drilling success rate. In the North Sea, maintenance turnaround at the Forties Field was delivered safely and on-budget, and total depth was reached on the Garten-3 well at Beryl, which is expected to deliver a substantial volume increase in the second half of the year.

Two flow tests were completed offshore Suriname on the Krabdagu discovery well and further appraisal is being planned. Exploration prospects on Block 58 (Dikkop) and Block 53 (Baja) are currently being drilled, with results expected in the coming months.

Across the portfolio, the company has numerous projects underway to reduce emissions and deliver on aggressive near- and medium-term goals for emissions reductions. Excellent progress was achieved during the quarter on this front, particularly in Egypt where the completion of several projects put the company on track to achieve its 2022 goal of reducing upstream routine flaring in-country by more than 40% by yearend.

Also, during the quarter, the company entered into a transaction to acquire properties in the Texas Delaware Basin (primarily in Loving and Reeves counties) near existing operations.

Capital Return to Shareholders and Debt Reduction Progress

Under APA’s capital return framework, the company repurchased 7.0 million shares of common stock during the quarter at an average price of $41.59 per share. Subsequent to the quarter end, in July, APA repurchased 6.9 million shares at an average price of $33.87. Since the inception of its buyback program in October 2021 through the end of July 2022, APA has repurchased 52.3 million shares at an average price of $31.19 per share.