APA Corporation Provides First-Quarter Supplemental Information and Schedules Results Conference Call for May 6 at 10 a.m. Central Time
APA Corporation (Nasdaq: APA) provided supplemental financial results for Q1 2021, including average realized prices: U.S. oil at $57.00/bbl and international oil at $61.00/bbl. The company reported a realized gain of $148 million on commodity derivatives and a total adjusted production guidance of 324 Mboe/d, with U.S. production up to 208 Mboe/d. However, international production dropped to 116 Mboe/d due to contract effects and maintenance downtime. APA will host a Q1 earnings call on May 6, 2021, to discuss these results further.
- Realized gain on commodity derivatives of $148 million.
- Adjusted production guidance increased to 324 Mboe/d, with U.S. production up to 208 Mboe/d.
- International adjusted production decreased to 116 Mboe/d from the previous 120 Mboe/d due to contract effects.
- Net loss on oil and gas purchases and sales of approximately $54 million.
HOUSTON, April 15, 2021 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain first-quarter 2021 financial and operational results.
Supplemental quarterly information
To further assist analysts with their first-quarter earnings models, the company is providing the following estimates:
| Estimated Average Realized Prices – 1Q21 | ||||||
| Oil (bbl) | NGL (bbl) | Natural Gas (Mcf) | ||||
| United States | ||||||
| International | ||||||
| Egypt tax barrels: | 24-25 MBoe/d |
| Realized gain on commodity derivatives (before tax): | |
| Unrealized gain on commodity derivatives (before tax): | |
| Dry hole costs (before tax): | |
| Net loss on oil and gas purchases and sales (before tax): |
First-quarter 2021 production guidance update
APA is providing the following adjustments to its expected production for the first-quarter 2021: Total Adjusted Production guidance remains 324 Mboe/d, which reflects an increase in U.S. volumes to 208 Mboe/d from previous guidance of 204 Mboe/d. Roughly half of this increase is attributable to oil volumes. Partially offsetting higher U.S. volumes, International adjusted production for the first-quarter 2021 is estimated at 116 Mboe/d, compared to 120 Mboe/d in the prior guidance, which is a result of production sharing contract affects associated with higher realized oil prices in Egypt and extended maintenance downtime in the North Sea.
Impact of hedging and marketing activity in 1Q21
As ordinary course of business, Apache’s marketing team generally seeks to maintain a balance between “first of month” and “gas daily pricing” for its U.S. natural gas portfolio. This is typically implemented through a combination of physical and financial contracts.
In late January 2021, Apache entered into financial contracts that increased its exposure to “gas daily pricing” and reduced its exposure to “first of month” pricing for the month of February. Given the subsequent and unprecedented daily gas price volatility across Texas during February, these contracts resulted in a 1Q21 realized gain of
Apache also incurred a net loss on oil and gas purchased and sold during the quarter of approximately
The impact of both of these factors on financial results in 1Q21 was unusual and is not expected to recur at this magnitude in future quarters.
First-quarter 2021 earnings call
APA Corporation will host its first-quarter 2021 results conference call on Thursday, May 6 at 10 a.m. Central time. The company will issue its earnings release after the market close on Wednesday, May 5. The full text of the release will be available on the company's website at www.apacorp.com. The conference call will be webcast from APA’s website at investor.apacorp.com, and the webcast replay will be archived there as well. The conference call will also be available for playback by telephone for one week beginning at approximately 4 p.m. Central time, May 6. To access the telephone playback, dial (855) 859-2056 or (404) 537-3406 for international calls. The conference access code is 5490148.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and gas in the United States, Egypt and the United Kingdom and that explore for oil and gas offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Specific information concerning Suriname, ESG performance and other investor-related topics are posted at investor.apacorp.com.
Forward-looking statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in Apache’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 25, 2021, for a discussion of risk factors that affect our business. Any forward-looking statement made by APA and/or Apache in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and Apache undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Contacts
| Investor: | (281) 302-2286 | Gary Clark |
| Media: | (713) 296-7276 | Phil West |
| Website: | www.apacorp.com |
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