Fri, Aug 2, 10:06 AM (88 days ago)
APA Corporation's Q2 2024 financial report highlights significant improvements in financial health and performance metrics, driven by the acquisition of Callon Petroleum Company. Key points include: 1. **Revenue and Profit Margins**: Total revenues surged to $2.5 billion, a 42% increase from Q2 2023, primarily due to higher production volumes and prices. Net income attributable to common stock rose to $541 million, or $1.46 per diluted share, up from $381 million, or $1.23 per share, in Q2 2023. 2. **Cash Flow and Earnings**: Operating cash flows were $1.2 billion for H1 2024, slightly down from $1.3 billion in H1 2023 due to working capital timing. The company repurchased 4.5 million shares and paid $168 million in dividends during H1 2024. 3. **Quarterly Performance**: The Callon acquisition added 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin, contributing to a 43% increase in U.S. production volumes. 4. **Operating Expenses**: Total operating expenses rose to $1.9 billion in Q2 2024, driven by higher lease operating expenses, transaction costs, and depreciation due to the Callon acquisition. 5. **Future Outlook**: APA forecasts a $2.7 billion capital investment for 2024, focusing on integrating Callon’s assets to enhance operational efficiency and cost savings. Overall, APA Corporation demonstrates robust financial growth, strategic acquisitions, and a commitment to shareholder returns.