APA Corporation reported a net income of $804 million, or $2.27 per diluted share, for the fiscal year ending December 31, 2024, a significant decrease from the previous year's net income of $2.9 billion, or $9.25 per diluted share. The decline in profitability was primarily attributed to impairments totaling $1.1 billion, including $796 million related to North Sea properties and $315 million in the U.S. Additionally, the company experienced lower realized prices for crude oil and natural gas compared to 2023, despite an increase in oil and gas revenues driven by higher production levels from the acquired Callon Petroleum assets.
In terms of operational performance, APA's total production for 2024 reached 166.4 million barrels of oil equivalent (MMboe), with U.S. operations contributing 62% of this total. The company drilled 289 gross wells, achieving a 92% success rate, and increased its daily production from U.S. assets by 30% compared to the previous year. The acquisition of Callon Petroleum on April 1, 2024, for approximately $4.5 billion, significantly enhanced APA's asset base, adding 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin.
The company also undertook strategic divestitures, selling non-core properties in the Permian Basin and other regions for approximately $1.6 billion, which were primarily used to reduce debt. This included the sale of non-core producing properties with a carrying value of $1.1 billion, resulting in cash proceeds of $869 million. The divestitures were part of APA's strategy to streamline its asset portfolio and focus on high-quality, short-cycle opportunities.
Looking ahead, APA plans to invest between $2.5 billion and $2.6 billion in upstream capital expenditures for 2025, with a focus on maintaining production levels slightly above those of 2024. The company aims to operate eight rigs in the Permian Basin and twelve in Egypt, while also allocating funds for development in Suriname. APA's commitment to returning capital to shareholders remains strong, with plans to continue its dividend payments and share repurchase programs, reflecting a balanced approach to capital allocation amidst a volatile commodity price environment.
About APA Corp
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