APA reported net income attributable to common stock of $242 million, or $0.78 per diluted share. When adjusted for items that impact the comparability of results, APA’s first-quarter earnings were

$372 million, or $1.19 per diluted share. Net cash provided by operating activities was $335 million, and adjusted EBITDAX was $1.3 billion. The company generated $272 million in free cash flow during the quarter.

Christmann IV, APA’s CEO and president, said: “Our oil production exceeded expectations in the first quarter, and we plan to focus on oil-driven activity. APA’s diversified portfolio enables us to respond quickly to changing commodity prices and market dynamics. Accordingly, we are reducing lean gas drilling activity in the U.S. in response to weak Permian Basin natural gas pricing. In Suriname, appraisal work at Krabdagu is progressing, and results thus far are in line with expectations.”

First-Quarter Summary

First-quarter reported production was 394,000 BOE per day, and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 318,000 BOE per day. APA’s first-quarter upstream capital investment, lease operating expense, and general and administrative expense were below guidance.

Capital and Activity Update

APA is lowering full-year upstream capital investment guidance to $1.9- to $2.0 billion, with the entire $100 million decrease attributable to the reduction of lean gas activity in the Permian Basin. This change is not expected to have a material impact on 2023 U.S. production. Other capital activity for the year is unchanged, as the company plans to continue running an average of 17 drilling rigs in Egypt and five in the U.S. As previously disclosed, APA will release the Ocean Patriot semisubmersible drilling rig in the North Sea around midyear.