APA Corporation Reports Significant Revenue Increase to $2.636 Billion in Q1 2025

APA Corporation reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $2.636 billion, up from $1.951 billion in the same period last year. The company's net income attributable to common stock was $347 million, or $0.96 per diluted share, compared to $132 million, or $0.44 per diluted share, in the first quarter of 2024. This growth was primarily driven by increased production from the Permian Basin and the acquisition of Callon Petroleum, which contributed to higher oil and gas production revenues.

The company experienced a 16% increase in oil, natural gas, and natural gas liquids production revenues, which totaled $2.039 billion, compared to $1.748 billion in the prior year. The increase in revenues was partially offset by a decrease in average realized prices for oil, which fell by 9% to $73.73 per barrel. In terms of production volumes, APA's total oil production rose to 236,503 barrels per day, an 18% increase from the previous year, while natural gas production increased to 923,551 Mcf per day, a 17% rise.

Strategically, APA Corporation completed leasehold acquisitions in the Permian Basin for approximately $13 million during the first quarter of 2025. Additionally, the company announced plans to divest certain non-core assets in New Mexico for $608 million, expected to close in late Q2 2025. This divestiture is part of APA's strategy to streamline operations and focus on core areas, with proceeds intended for debt reduction. The company also repurchased 4.4 million shares of its common stock for $100 million during the quarter.

Operationally, APA's U.S. assets accounted for 64% of total production, with the company averaging eight drilling rigs in the Permian Basin. The company brought online 31 operated wells during the quarter, reflecting its commitment to growth in this key area. In Egypt, APA averaged 13 drilling rigs and drilled 18 new productive wells, although production from these assets saw a slight decrease. The company continues to align its drilling activities with a focus on improving capital efficiency.

Looking ahead, APA Corporation anticipates continued volatility in commodity prices due to macroeconomic uncertainties and geopolitical factors. The company is committed to a capital return framework, targeting a return of 60% of free cash flow through dividends and share repurchases. For 2025, APA expects to invest approximately $2.2 billion to $2.3 billion in upstream capital, with a focus on maintaining production levels and enhancing operational efficiencies.