APA Corporation has delivered an exceptional second quarter, surpassing oil production expectations in the Permian Basin. This outstanding performance has prompted the company to raise its production outlook for the rest of the year, even as it adjusts for recent asset sales. The ahead-of-schedule integration of Callon assets is playing a significant role in this increased production.
APA plans to maintain a robust rig activity, averaging nine to ten rigs in the Permian Basin throughout the remainder of 2024. The company anticipates an 8% increase in U.S. oil production from the second to the fourth quarter of the year.
Despite facing significant natural gas and NGL curtailments due to pricing extremes, APA’s total U.S. volumes on a barrels of oil equivalent (BOE) basis remained in line with company guidance. CEO John J. Christmann IV emphasized the company’s strategic adjustments and efficient operations in the Permian Basin, underscoring APA’s commitment to maximizing output and efficiency.
APA Corporation Q2 2024 Permian Basin Highlights
Outstanding Q2 Performance
- APA Corporation delivered higher-than-expected oil production in the Permian Basin.
Increased Production Outlook
- Due to the strong performance, APA has raised its production outlook for the remainder of the year.
- Adjustments have been made for recent asset sales.
Callon Acquisition
- The integration of Callon assets is proceeding ahead of schedule.
- These assets are significantly contributing to the production increase.
Rig Activity
- APA plans to maintain an average of nine to ten rigs in the Permian Basin for the rest of 2024.
Production Growth
- U.S. oil production is expected to increase by 8% from Q2 to Q4 of 2024.
Response to Pricing Extremes
- Despite significant curtailments in natural gas and NGL due to pricing extremes, total U.S. volumes on a BOE (barrels of oil equivalent) basis were in line with company guidance.
CEO’s Statement
- John J. Christmann IV, APA’s CEO, highlighted the outstanding production performance and the company’s strategic adjustments aimed at maximizing output and efficiency in the Permian Basin.
APA Corporation’s remarkable second-quarter performance in the Permian Basin showcases its robust operational capabilities and strategic agility. The integration of Callon assets ahead of schedule and the decision to maintain a high level of rig activity underline APA’s commitment to growth and efficiency. With an optimistic production outlook for the remainder of 2024, APA is well-positioned to navigate market challenges and capitalize on its strengths, delivering value to stakeholders and reinforcing its leadership in the energy sector. CEO John J. Christmann IV’s emphasis on strategic adjustments further solidifies confidence in APA’s trajectory and its ability to maximize output and efficiency in the Permian Basin.
