APA Corporation (NASDAQ:APA ) Q1 2025 Earnings Conference Call May 8, 2025 11:00 AM ET Company Participants Ben Rodgers - Senior Vice President of Finance & Treasurer John Christmann - Chief Executive Officer Steve Riney - President & Chief Financial Officer Tracey Henderson - Executive Vice President of Exploration Conference Call Participants John Freeman - Raymond James Doug Leggate - Wolfe Research Scott Gruber - Citigroup Arun Jayaram - JPMorgan Securities Betty Jiang - Barclays Paul Cheng - Scotiabank Leo Mariani - ROTH Oliver Huang - TPH & Company Operator Good day. Thank you for standing by.
While the top- and bottom-line numbers for APA (APA) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
APA (APA) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.78 per share a year ago.
Strong domestic production is likely to have boosted APA's profit levels in the first quarter of 2025.
APA Corporation's $9 billion Suriname project with TotalEnergies and recent Callon Petroleum acquisition promise significant cost synergies and efficiency improvements, making the stock undervalued at $16. The company's diversified asset base in the U.S., Egypt, and the U.K. reduces revenue volatility compared to competitors operating solely in the U.S. Stock repurchases at $23-$24 indicate substantial undervaluation at $16 per share.
APA Corporation screens as a value opportunity, with exploration upside, but its high leverage and commodity price exposure require a high tolerance for risk. APA's areas of operation include the Permian Basin, Egypt, and the North Sea, with exploration upside in Alaska, Suriname, and Uruguay. Key risks include high leverage, unhedged commodity exposure, and dependence on the GranMorgu development in Suriname.
APA (APA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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In the closing of the recent trading day, APA (APA) stood at $15.65, denoting a -1.32% change from the preceding trading day.
APA Corporation is an independent E&P oil company with operations in the Permian Basin, Egypt, and the North Sea, and a market cap of $8.76B. The Company has expanded its footprint in the Permian and New Mexico regions, focusing on high-margin areas and optimizing productivity with 9 drilling rigs. The Callon acquisition added 145,000 net acres, increasing APA's onshore U.S. production by 66,000 BOE/d, totaling 300,709 BOE/d in the U.S.
APA (APA) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.