APA Corporation (NASDAQ: APA) has announced its financial and operational results for the fourth quarter and full-year 2024. The company reported a net income attributable to common stock of $354 million or $0.96 per diluted common share for the fourth quarter, with adjusted earnings of $290 million or $0.79 per diluted share. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.6 billion during the same period. Reported production for the fourth quarter was 488,000 barrels of oil equivalent (boe) per day, while adjusted production, excluding Egypt noncontrolling interest and tax barrels, stood at 418,000 boe per day.
For the full-year 2024, APA reported net income attributable to common stock of $804 million or $2.27 per diluted common share. On an adjusted basis, the company's 2024 earnings totaled $1.3 billion or $3.77 per diluted common share. Reported full-year production was 455,000 boe per day, with adjusted production at 385,000 boe per day. APA also delivered full-year net cash provided by operating activities of $3.6 billion, adjusted EBITDAX of $5.9 billion, and $841 million of free cash flow (FCF).
In terms of capital allocation and returns to shareholders, APA returned $599 million to shareholders, which represents 71% of the FCF generated during the year. The company repurchased $246 million of common stock and paid $353 million in dividends. Additionally, APA ended the year with debt of $6 billion and cash of $625 million, experiencing an increase in net debt of only $300 million from the end of 2023, despite adding over $2 billion of debt with the Callon acquisition.
Looking ahead to 2025, APA plans to invest $2.5 to $2.6 billion in upstream oil and gas capital, including $200 million toward progressing the GranMorgu project in Suriname and $100 million for exploration activities, predominantly in Alaska. The company expects total adjusted production to be relatively flat year-over-year at around 396,000 boe per day, with U.S. oil volumes staying consistent at 125,000 to 127,000 barrels of oil per day.
CEO John J. Christmann IV highlighted the company's strategic reshaping over the past few years, emphasizing the acquisition of Callon, the final investment decision for the GranMorgu project in Suriname, and the new gas agreement in Egypt as significant milestones. APA is also undertaking cost reduction initiatives aimed at streamlining the business and improving operating practices, targeting at least $350 million in sustainable annual savings by the end of 2027 across LOE, capital, and overhead.
In terms of reserves, APA reported worldwide estimated proved reserves totaling 969 million boe at year-end 2024, with 69% classified as proved developed.
APA Corporation will host a conference call to discuss its fourth-quarter and full-year 2024 results at 10 a.m. Central Time on Thursday, Feb. 27, with a webcast available from APA’s website. As a result of these announcements, the company's shares have moved -6.7% on the market, and are now trading at a price of $20.54. For more information, read the company's full 8-K submission here.
