APA (APA) Q4 2024 earnings summary

Executive summary

• Achieved significant portfolio transformation in 2024, focusing on the Permian Basin and Egypt as core assets, advancing Suriname development, and completing the Callon acquisition.

• Permian Basin accounted for 75–78% of adjusted production, reflecting a focused unconventional position and improved economics in Egypt after renegotiated terms.

• Delivered $420 million in Q4 free cash flow, the highest quarterly figure in 2024, and achieved investment grade status with all three rating agencies.

• Returned 71% of 2024 free cash flow to shareholders via dividends and buybacks, totaling $599 million.

• Suriname Block 58 reached FID for a 220,000 B/d oil project, with first oil expected in 2028 and significant long-term upside.

Financial highlights

• Q4 2024 consolidated net income was $354 million ($0.96 per diluted share); adjusted net income was $290 million ($0.79 per share).

• Full-year 2024 free cash flow was $841 million, with $420 million in Q4, the highest quarterly figure in 2024.

• Adjusted EBITDAX for Q4 2024 was $1.6 billion; full-year adjusted EBITDAX was $5.9 billion.

• Returned $353 million in dividends and $246 million in share repurchases in 2024, including $100 million in Q4 buybacks.

• Net debt reduced 38% since YE 2020, standing at $5.3–$5.4 billion at YE 2024.

Outlook and guidance

• 2025 capital budget set at $2.5–$2.6 billion, with $2.2–$2.3 billion for development, $200 million for Suriname, and $100 million for exploration (mainly Alaska).

• Permian development capital reduced by over 20% year-over-year (adjusted for Callon Q1 spend), with 7% total production growth and flat oil output.

• 2025 U.S. oil production expected at 125,000–127,000 bpd; total U.S. volumes to increase mid-single digits.

• Egypt adjusted production to grow slightly to 69,000 BOE/d; gas production expected to increase for the first time in over a decade.

• Targeting $350 million in annualized cost savings by 2027, with $100–$125 million run-rate savings by end of 2025.