APA Corporation has announced its financial and operational results for the fourth quarter and full year of 2023, revealing a strong performance in various aspects of the business. The company reported delivering a full-year net cash from operating activities of $3.1 billion, adjusted EBITDAX of $5.3 billion, and $965 million of free cash flow. APA also returned $637 million to shareholders, representing 66% of the free cash flow generated.
The company's total oil production increased by 8% year-over-year, with U.S. oil production specifically rising by 12% from the fourth quarter of 2022 to the fourth quarter of 2023. APA Corporation's CEO, John J. Christmann IV, attributed the strong results to exceptional well performance and execution in the Permian Basin. He stated, "We generated nearly $1 billion in free cash flow and returned 66% to shareholders."
Looking ahead to 2024, APA Corporation is planning an upstream capital budget of $1.9 to $2.0 billion and is forecasting strong U.S. oil growth of approximately 8% year-over-year, with more than 10% growth from the fourth quarter of 2023 to the fourth quarter of 2024. The pending acquisition of Callon Petroleum Company is expected to add scale to APA's existing Delaware Basin assets and is anticipated to be accretive to key financial metrics. The company is also committing to return at least 60% of free cash flow to shareholders.
APA Corporation's CEO emphasized the company's prudent approach to managing costs and capital, stating, "Given the potential for lower year-over-year commodity prices, we will prudently manage costs and high-grade capital to our most strategic opportunities."
In terms of reserves, the company reported estimated proved reserves totaling 807 million barrels of oil equivalent at year-end 2023, with 91% classified as proved developed.
Following the announcement, the company's shares experienced a 3.0% decrease and are currently trading at a price of $30.5.
The company's full 8-K submission is available here.
