APA 8-K Report, Financial Results (Feb 27, 2025)

APA Corporation reported fourth-quarter and full-year 2024 results in a press release dated February 26, 2025, furnished as Exhibit 99.1 to this Form 8-K.

For full-year 2024, net income attributable to common stock was $804 million^a, or $2.27 per diluted share, versus $2.855 billion in 2023; on an adjusted basis, 2024 earnings were $1.3 billion, or $3.77 per diluted share. Full-year net cash provided by operating activities was $3.6 billion, adjusted EBITDAX was $5.9 billion, and free cash flow was $841 million. The company returned $599 million to shareholders, equal to 71% of free cash flow, and ended the year with debt of $6 billion and cash of $625 million.

Management highlighted the Callon Petroleum acquisition, the final investment decision on the GranMorgu Phase 1 project in Suriname with TotalEnergies, and a new gas price agreement in Egypt. For 2025, APA plans upstream capital of $2.5 to $2.6 billion^b, including $200 million for GranMorgu and $100 million for exploration, predominantly in Alaska. Total adjusted production is expected at around 396,000 BOE per day, described as relatively flat year over year, and the company committed to returning at least 60% of free cash flow to shareholders.

Management also targets at least $350 million^c in annual run-rate savings across LOE, capital and overhead by the end of 2027. Year-end 2024 worldwide proved reserves totaled 969 million BOE, 69% of which were proved developed. The company stated it achieved investment-grade status with all three rating agencies.

Reported fourth-quarter net income attributable to common stock was $354 million^d, or $0.96 per diluted share, and adjusted fourth-quarter earnings were $290 million, or $0.79 per diluted share. Investors should note that the release relies heavily on non-GAAP measures such as adjusted EBITDAX, adjusted earnings and free cash flow, and that the Form 10-K for 2024 was referenced as not yet filed at the time of the release.