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APA Stock Rises 11% After Q3 Earnings & Sales Top Estimates
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APA Corporation (APA - Free Report) stock has gone up 10.8% since the third-quarter 2022 earnings announcement on Nov 2. This rise could be attributed to the U.S. energy explorer’s third-quarter earnings and revenues beating the consensus mark.
Behind the Earnings Headlines
APA Corporation reported third-quarter 2022 adjusted earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.92. The reported figure rose significantly from the year-earlier quarter’s income of 98 cents.
The outperformance could be attributed to higher-than-expected sales in the reported quarter. Moreover, the average daily output came in at 381,934 barrels of oil equivalent per day (BOE/d), meeting the consensus mark.
Revenues of $2.87 billion outpaced the Zacks Consensus Estimate of $2.6 billion. Revenues improved 74% from the year-ago quarter’s sales of $1.65 billion.
Since APA started the share buyback program last October, 55.2 million shares have been repurchased in total up to Sep 30 at an average price of $31.33. The company also shelled out $41 million in dividend payouts.
The production of oil and natural gas averaged 381,934 BOE/d. The figure decreased 1.8% from the year-ago quarter.
The U.S. output (accounting for 57.3% of the total) fell 7.9% year over year to 218,826 BOE/d, but production from the company’s international operations increased some 7.7% to 163,108 BOE/d. APA Corporation’s oil and natural gas liquid production was 65,516 barrels per day. The natural gas output totaled 826,874 thousand cubic feet per day.
The average realized crude oil price in the third quarter was $97.81 per barrel, up 36.4% from the year-ago realization of $71.72. The number marginally lagged the Zacks Consensus Estimate of $100.
Meanwhile, the average realized natural gas price jumped to $5.62 per thousand cubic feet from $3.87 in the year-ago period. However, the figure lagged the consensus mark of $6.67.
Costs & Financial Position
APA’s third-quarter lease operating expenses totaled $364 million, up 15.2% from the year-ago period. Moreover, the increased cost of oil and gas purchased meant that total operating expenses rose 11.2% from the corresponding period of 2021 to $1.7 billion.
During the quarter under review, APA generated $1.1 billion in cash from operating activities while incurring $492 million in upstream capital expenditures. The company reported adjusted operating cash flow of $1.24 billion in the third quarter. It also registered free cash flow of $609 million during the period, surging from $403 million a year ago.
As of Sep 30, APA Corporation had approximately $268 million in cash and cash equivalents and $5.4 billion in long-term debt. The debt-to-capitalization of the company was 77.7%.
Guidance
APA’s full-year capital investment guidance remains unchanged at $1.725 billion. The company anticipates fourth-quarter adjusted production in the range of 328,000-332,000 BOE/d, up more than 5% from the third quarter. The increase is expected to be driven by higher oil production across its assets.
Let’s take a look at some key energy releases so far.
Schlumberger (SLB - Free Report) , the largest oilfield contractor, announced third-quarter earnings of 63 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 55 cents. SLB recorded total revenues of $7.5 billion, outpacing the Zacks Consensus Estimate by 4.7%.
Schlumberger’s solid quarterly earnings resulted from strong activities in land and offshore resources in North America and Latin America. In good news for investors, SLB generated free cash flow of $1.1 billion during the period.
Europe’s largest oil company, Shell plc (SHEL - Free Report) , reported underwhelming third-quarter earnings. The bottom line of $2.58 per share missed the Zacks Consensus Estimate of $2.68. The underperformance reflected lower production and a pullback in refining margins from second-quarter highs.
However, SHEL’s results were better than the year-earlier quarter’s adjusted profit of $1.06 per ADS, backed by stronger commodity prices. Meanwhile, Shell repurchased $5 billion of shares in the third quarter. SHEL also announced that it completed the $6-billion buyback program scheduled for the third quarter of 2022.
Meanwhile, the energy infrastructure provider, Kinder Morgan (KMI - Free Report) , reported third-quarter 2022 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 29 cents. The disappointing bottom line could be attributed to the lower pipeline volumes of gasoline and diesel fuel, partially offset by higher contributions from KMI’s natural gas pipelines and CO2 segments.
As of Sep 30, 2022, Kinder Morgan reported $483 million in cash and cash equivalents. The company’s long-term debt amounted to $29 billion, resulting in a debt to capitalization of 49.6%. For 2022, KMI expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior-year reported figure.
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APA Stock Rises 11% After Q3 Earnings & Sales Top Estimates
APA Corporation (APA - Free Report) stock has gone up 10.8% since the third-quarter 2022 earnings announcement on Nov 2. This rise could be attributed to the U.S. energy explorer’s third-quarter earnings and revenues beating the consensus mark.
Behind the Earnings Headlines
APA Corporation reported third-quarter 2022 adjusted earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.92. The reported figure rose significantly from the year-earlier quarter’s income of 98 cents.
The outperformance could be attributed to higher-than-expected sales in the reported quarter. Moreover, the average daily output came in at 381,934 barrels of oil equivalent per day (BOE/d), meeting the consensus mark.
Revenues of $2.87 billion outpaced the Zacks Consensus Estimate of $2.6 billion. Revenues improved 74% from the year-ago quarter’s sales of $1.65 billion.
Since APA started the share buyback program last October, 55.2 million shares have been repurchased in total up to Sep 30 at an average price of $31.33. The company also shelled out $41 million in dividend payouts.
APA Corporation Price, Consensus and EPS Surprise
APA Corporation price-consensus-eps-surprise-chart | APA Corporation Quote
Production & Selling Prices
The production of oil and natural gas averaged 381,934 BOE/d. The figure decreased 1.8% from the year-ago quarter.
The U.S. output (accounting for 57.3% of the total) fell 7.9% year over year to 218,826 BOE/d, but production from the company’s international operations increased some 7.7% to 163,108 BOE/d. APA Corporation’s oil and natural gas liquid production was 65,516 barrels per day. The natural gas output totaled 826,874 thousand cubic feet per day.
The average realized crude oil price in the third quarter was $97.81 per barrel, up 36.4% from the year-ago realization of $71.72. The number marginally lagged the Zacks Consensus Estimate of $100.
Meanwhile, the average realized natural gas price jumped to $5.62 per thousand cubic feet from $3.87 in the year-ago period. However, the figure lagged the consensus mark of $6.67.
Costs & Financial Position
APA’s third-quarter lease operating expenses totaled $364 million, up 15.2% from the year-ago period. Moreover, the increased cost of oil and gas purchased meant that total operating expenses rose 11.2% from the corresponding period of 2021 to $1.7 billion.
During the quarter under review, APA generated $1.1 billion in cash from operating activities while incurring $492 million in upstream capital expenditures. The company reported adjusted operating cash flow of $1.24 billion in the third quarter. It also registered free cash flow of $609 million during the period, surging from $403 million a year ago.
As of Sep 30, APA Corporation had approximately $268 million in cash and cash equivalents and $5.4 billion in long-term debt. The debt-to-capitalization of the company was 77.7%.
Guidance
APA’s full-year capital investment guidance remains unchanged at $1.725 billion. The company anticipates fourth-quarter adjusted production in the range of 328,000-332,000 BOE/d, up more than 5% from the third quarter. The increase is expected to be driven by higher oil production across its assets.
Zacks Rank & Recent Energy Releases
APA Corporation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s take a look at some key energy releases so far.
Schlumberger (SLB - Free Report) , the largest oilfield contractor, announced third-quarter earnings of 63 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 55 cents. SLB recorded total revenues of $7.5 billion, outpacing the Zacks Consensus Estimate by 4.7%.
Schlumberger’s solid quarterly earnings resulted from strong activities in land and offshore resources in North America and Latin America. In good news for investors, SLB generated free cash flow of $1.1 billion during the period.
Europe’s largest oil company, Shell plc (SHEL - Free Report) , reported underwhelming third-quarter earnings. The bottom line of $2.58 per share missed the Zacks Consensus Estimate of $2.68. The underperformance reflected lower production and a pullback in refining margins from second-quarter highs.
However, SHEL’s results were better than the year-earlier quarter’s adjusted profit of $1.06 per ADS, backed by stronger commodity prices. Meanwhile, Shell repurchased $5 billion of shares in the third quarter. SHEL also announced that it completed the $6-billion buyback program scheduled for the third quarter of 2022.
Meanwhile, the energy infrastructure provider, Kinder Morgan (KMI - Free Report) , reported third-quarter 2022 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 29 cents. The disappointing bottom line could be attributed to the lower pipeline volumes of gasoline and diesel fuel, partially offset by higher contributions from KMI’s natural gas pipelines and CO2 segments.
As of Sep 30, 2022, Kinder Morgan reported $483 million in cash and cash equivalents. The company’s long-term debt amounted to $29 billion, resulting in a debt to capitalization of 49.6%. For 2022, KMI expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior-year reported figure.