APA Corporation Provides First-Quarter Supplemental Information and Schedules Results Conference Call for May 6 at 10 a.m. Ce...
April 15 2021 - 7:25PM
APA Corporation (Nasdaq: APA) today provided supplemental
information regarding certain first-quarter 2021 financial and
operational results.
Supplemental quarterly informationTo 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 |
$57.00 |
$23.00 |
$4.40 |
International |
$61.00 |
$47.50 |
$3.40 |
Egypt tax
barrels: |
24-25
MBoe/d |
Realized gain on commodity derivatives (before tax): |
$148 million |
Unrealized gain on commodity derivatives (before tax): |
$26 million |
Dry hole costs (before tax): |
$19-23 million |
Net loss on oil and gas purchases and sales (before tax): |
$54 million |
First-quarter 2021 production guidance
updateAPA 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 $147 million.
Apache also incurred a net loss on oil and gas purchased and
sold during the quarter of approximately $54 million. This was
primarily attributable to transport, fuel, and physical gas
purchases and sales made by Apache to fulfill natural gas takeaway
obligations, the extent of which was also exacerbated by the
extreme price volatility during the month of February.
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 callAPA 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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