01—Abstract
Summary
Summary of the 10-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
APA Corporation (APA) is an independent energy company that explores for, develops, and produces crude oil, natural gas, and NGLs across three operating areas: the U.S. (primarily the Permian Basin), Egypt, and the U.K.
North Sea, with active development in Suriname (Block 58 GranMorgu project, first oil anticipated in 2028). In 2024, APA reported net income attributable to common stock of $804 milliona, or $2.27 per diluted share, versus $2.9 billion ($9.25 per diluted share) in 2023. Results were driven by $1.1 billion of impairments, including $796 million in the North Sea and $315 million in the U.S., along with lower realized commodity prices.
Net cash provided by operating activities rose to $3.6 billionb, up $491 million from 2023, supported by the Callon acquisition and Permian drilling activity. The Callon acquisition, completed April 1, 2024 in an all-stock transaction valued at about $4.5 billion including debt, added roughly 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin. APA also divested non-core Permian, East Texas, and Eagle Ford properties and mineral interests, generating about $1.6 billion of proceeds used primarily to reduce debt, and sold its remaining Kinetik shares for $428 million.
Year-end 2024 total proved reserves were 969 MMboe, of which about 31 percent were proved undeveloped. The company plans 2025 upstream capital investment of $2.5 billion to $2.6 billionc and expects production slightly higher than 2024. It returned capital through $353 million of dividends and $246 million of share repurchases in 2024, and it will cease North Sea production before 2030.
The filing also highlights balance sheet and risk items. Total debt was $6.0 billiond at year-end 2024, and cash was $625 million. Subsequent to year-end, APA completed exchange and tender offers for Apache-issued notes and entered new credit facilities maturing in January 2030.
The company carries contingent decommissioning liabilities for previously sold Gulf of America properties of $1.0 billion, and it recorded a $273 million loss on those properties in 2024. Egypt receivables from EGPC have grown as payments have been delayed.
02—Key points
Key Highlights
- 2024 net income attributable to common stock of $804 million, or $2.27 per diluted share, down from $2.9 billion ($9.25 per diluted share) in 2023
- Impairments of $1.1 billion in 2024, including $796 million in the North Sea and $315 million in the U.S.
- Operating cash flow of $3.6 billion in 2024, up $491 million from 2023
- Callon acquisition (April 1, 2024) valued at about $4.5 billion added ~120,000 net Delaware Basin acres and ~25,000 net Midland Basin acres
- About $1.6 billion of 2024 divestiture proceeds used primarily to reduce debt; remaining Kinetik shares sold for $428 million
- Year-end 2024 proved reserves of 969 MMboe; 2025 upstream capital budget of $2.5 to $2.6 billion
- Total debt of $6.0 billion at year-end 2024; $1.0 billion decommissioning contingency for sold Gulf of America properties
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 28, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Operating Expenses | $8.20B$5.31B | +54.5% |
| Operating Income | $2.44B$3.70B | −33.9% |
| Interest Expense | $402.00M$351.00M | +14.5% |
| Net Income | $804.00M$2.85B | −71.8% |
| EPS (Basic) | $2.28$9.26 | −75.4% |
| EPS (Diluted) | $2.27$9.25 | −75.5% |
| Shares Outstanding (Basic) | 353.00M308.00M | +14.6% |
| Shares Outstanding (Diluted) | 353.00M309.00M | +14.2% |
05—Questions
Frequently Asked Questions
Why did net income fall so sharply in 2024?
The filing attributes the decline mainly to $1.1 billion of impairments, including $796 million on North Sea proved properties and $315 million on U.S. properties tied to a Permian divestiture, along with lower realized crude oil and natural gas prices. Higher revenues from the Callon acquisition partially offset these effects.
What is APA's 2025 capital plan?
APA plans $2.5 billion to $2.6 billion of upstream capital investment in 2025, including an 8-rig Permian program, a 12-rig Egypt program, roughly $200 million for Suriname development, and $100 million for exploration, primarily in Alaska. The company expects 2025 production to be slightly higher than 2024.
What happens to the North Sea business?
The company determined that expected returns do not economically support the required investments under new U.K. regulations and tax levies, so it will cease production at its North Sea facilities before 2030. Its North Sea investment program is now directed toward asset safety and integrity.
What is the Suriname opportunity?
APA reached a positive final investment decision on the GranMorgu oil development in Block 58 offshore Suriname, with total investment estimated at $10.5 billion and an FPSO with 220,000 b/d oil production capacity. APA holds a 50 percent working interest in Block 58, with TotalEnergies as operator, and first oil is anticipated in 2028.
What are the main risks from the Gulf of America legacy assets?
Apache, a subsidiary, has potential liability for decommissioning properties sold to Fieldwood and other buyers, estimated at $1.0 billion to $1.4 billion undiscounted, with $1.0 billion recorded as a contingent liability at year-end 2024. The filing also notes that the purchaser GOM Shelf was unable to fund certain decommissioning obligations, and that the company recognized a $273 million loss on previously sold properties in 2024.
06—Continue