Key facts
- APA reported adjusted profit of $1.89 per share, surpassing the analyst average estimate of $1.87.
- The company's realized price for each barrel of oil produced rose to $98.24 from $65.58 a year ago.
- Quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day.
- APA increased its full-year U.S. oil production forecast to 123,000 bpd from 122,000 bpd.
- The company anticipates achieving about $500 million in annualized savings by the end of 2026.
APA, a U.S. shale producer, reported second-quarter profit that surpassed Wall Street expectations, driven by an increase in crude oil prices. The company's realized price for each barrel of oil produced rose to $98.24 from $65.58 a year prior.
Despite a nearly 12% decline in quarterly production to 410,000 barrels of oil equivalent per day, APA's financial results were bolstered by higher commodity prices. Benchmark Brent crude averaged $89.62 a barrel during the quarter, influenced by concerns over Middle East supply disruptions and shipping through the Strait of Hormuz.
APA posted an adjusted profit of $1.89 per share, exceeding the consensus estimate of $1.87. The company has increased its full-year U.S. oil production forecast to 123,000 bpd from 122,000 bpd.
Furthermore, APA anticipates achieving approximately $500 million in annualized savings by the end of 2026, an increase from its previous target. The company has also reduced its debt by $2.3 billion since the end of 2024, leading to annualized interest savings of over $155 million, with net debt standing at $3.3 billion at the quarter's end.