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APA Reveals Additional Q1 Financial & Operational Information

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APA Corporation (APA - Free Report) provided additional information regarding some of its financial and operational results for first-quarter 2021.

The company announced a few modifications in its expected production for the quarter ended Mar 31. Its adjusted total production guidance remained at 324 thousand barrels of oil equivalent per day (Mboe/d) for the quarter. However, this reflects a hike in the company’s guidance for U.S. volumes to 208 Mboe/d from the previously mentioned 204 Mboe/d. Notably, about 50% of the new number is expected to result from oil volumes.

For first-quarter 2021, the company’s adjusted production at international levels is valued at 116 Mboe/d compared with 120 Mboe/d mentioned previously. This is attributable to the production-sharing contracts associated with higher realized oil prices in Egypt and extended maintenance downtime in the North Sea.

As part of the business, APA’s marketing team intends to maintain a balance between first-of-month and gas-daily-pricing for its natural gas portfolio in the United States. This is usually carried out through a combination of physical and financial contracts.

In January 2021, the company signed several financial contracts, which enhanced its vulnerability to gas daily pricing but reduced the same for first-of-month pricing in February.  Notably, the contracts resulted in a first-quarter realized gain of $147 million despite the unusual daily gas price volatility throughout Texas.

Further, APA incurred a net loss of nearly $54 million by the buying and selling of oil and gas in the quarter. This was mainly due to transport, fuel and physical gas sales and purchases made by the company in order to meet the takeaway requirements for natural gas.

The company will issue its earnings release after the market close on May 5.

Company profile & Price Performance

Headquartered in Houston, TX, APA is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.

Shares of the company have underperformed the industry in the past six months. Its stock has gained 84.7% compared with the industry’s 93.4% growth.

 

 

Zacks Rank & Stocks to Consider

APA currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy space are Halliburton Company (HAL - Free Report) , PetroChina Company Limited  and Diamondback Energy, Inc. (FANG - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Halliburton’s earnings for 2021 are expected to rise 52.3% year over year.

PetroChina’s earnings for 2021 are expected to increase 45.5% year over year.

Diamondback’s earnings for 2021 are expected to grow 21% year over year.

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