Wedoany.com Report-Feb 27, On Wednesday, February 26, 2025, U.S. shale producer APA Corp, based in Houston, reported its fourth-quarter earnings for 2024, falling below Wall Street projections. The shortfall occurred despite increased production, as lower commodity prices impacted revenue. After the announcement, APA’s shares dropped 1.2%, closing at $21.74 in after-hours trading.

Throughout 2024, Brent crude futures declined by 3%, influenced by weakened economic performance in China, a major global consumer, and decisions by the OPEC+ group. The organization delayed planned supply increases and extended substantial output reductions through 2026, reflecting reduced demand expectations. In the fourth quarter, APA’s production reached 488,000 barrels of oil equivalent per day, up from 414,000 barrels per day during the same period in 2023.

APA disclosed that the average price per barrel of oil was $72.42 in the final quarter of 2024, down from $81.36 the previous year. Natural gas prices also saw a notable decrease of over 24%, averaging $2.20 per thousand cubic feet. Looking ahead, the company projects its adjusted production for 2025 at 396,000 barrels of oil equivalent per day, with a modest increase anticipated in the Permian basin compared to the prior year.

Throughout 2024, APA adjusted its output, reducing production in all four quarters due to market conditions. In January, the company noted a curtailment of approximately 23,500 barrels of oil equivalent per day in the fourth quarter alone, primarily due to sustained low natural gas prices in the Permian basin. However, APA anticipates that U.S. gas production volumes in the current year will improve, as it plans to avoid reductions tied to pricing.

APA also outlined plans for significant cost-saving measures to enhance operational efficiency. The company aims to achieve annual savings of at least $350 million by the end of 2027. For the quarter ending December 31, 2024, APA reported an adjusted profit of 79 cents per share, below the 97 cents per share that analysts had forecasted, based on data from LSEG.

The company’s leadership emphasized a focus on adapting to market dynamics while maintaining production capacity. APA’s performance reflects broader trends in the energy sector, where fluctuating commodity prices and global demand shifts continue to shape operational strategies.