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APA Nasdaq· APA Corporation
Earnings report Q4 2023

APA Corporation Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

APA Corporation's revenue for the latest quarter totaled approximately $1.7 billion. This represents a decrease compared to the previous year's revenue. The company's revenue was impacted by lower commodity prices and associated revenues, as well as the timing of working capital items.

Strengths

Despite the decrease in revenue, APA Corporation's operational highlights include a 2 percent increase in daily boe production from its U.S. assets compared to the previous year. This indicates the company's ability to maintain production levels and optimize its operations. Additionally, APA Corporation benefited from gains of approximately $1.2 billion from divestiture of certain non-core mineral rights and the completion of the BCP Business Combination in the previous year.

Challenges

The decrease in revenue for the latest quarter can be attributed to lower commodity prices and associated revenues. This indicates a challenging market environment for the company. Additionally, APA Corporation repurchased 8.7 million shares of its common stock for $329 million and paid $308 million in dividends to APA common stockholders during the year, which could impact its cash flow and financial flexibility.

Noteworthy

It is noteworthy that APA Corporation generated $3.1 billion of cash from operating activities in the year, which was $1.8 billion or 37 percent lower than the previous year. This significant decrease in operating cash flows can be attributed to the lower commodity prices and associated revenues, as well as the timing of working capital items.

Summary

APA Corporation reported a decrease in revenue for the latest quarter, primarily due to lower commodity prices and associated revenues. However, the company demonstrated strength in maintaining its daily boe production from U.S. assets and benefited from gains from divestiture activities in the previous year. APA Corporation's lower operating cash flows and significant share repurchases and dividend payments pose challenges to its financial performance and flexibility.

Source documents

Form 10-K  filed on Feb 22, 2024
148 pages scanned

Reference data

Company financials Q4 revenue 1.90B
Analyst estimates Q4 EPS beat by 8.15%
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