APA Corporation
APABusiness Overview
ticker: APA step: 01 generated: 2026-05-13 source: quick-research
APA Corporation (APA) — Business Overview
Business Description
APA Corporation (formerly Apache Corporation) is a mid-cap independent oil and gas E&P company with a uniquely diversified international portfolio spanning the U.S. Permian Basin, Egypt (Western Desert), the North Sea (UK), and offshore Suriname. APA completed its acquisition of Callon Petroleum in April 2024 for ~$4.5B (all-stock), adding 145K acres in the Delaware Basin and increasing oil production weighting. The company has 1.056 billion BOE of proved reserves (74% U.S., 17% Egypt, 7% Suriname, 2% North Sea). FY2024 revenue was $9.74B. A major growth catalyst is the Suriname GranMorgu deepwater project (Final Investment Decision late 2024), expected to add ~220K bbl/day gross capacity.
Revenue Model
Revenue is from oil, natural gas, and NGL sales at market prices, plus third-party gas marketing (~$575M annually from marketing activities). The Permian Basin is the primary U.S. production driver (oil-weighted); Egypt generates significant gas volumes under PSC (Production Sharing Contract) arrangements with the Egyptian government; the North Sea Forties field produces oil; Suriname Block 58 is an emerging deepwater oil development. APA commits to returning 60%+ of FCF to shareholders (dividends + buybacks).
Products & Services
- Permian Basin crude oil & NGLs: Primary U.S. production; Midland and Delaware sub-basins (enhanced by Callon addition)
- Egypt gas & liquids: Western Desert PSC operations; 17% of proved reserves; 2025 premium pricing agreement (~$3.58-4.25/Mcf)
- North Sea oil: Forties oilfield, UK North Sea; ~2% of reserves
- Suriname Block 58: Deepwater oil development (GranMorgu project); FID 2024; ~220K bbl/day gross capacity planned
- Alaska exploration: 275K acre concession; North Slope multi-rig drilling program
Customer Base & Go-to-Market
Sells oil, gas, and NGLs to refiners, midstream operators, and commodity traders at regional market prices. Egypt PSC arrangements mean APA shares production with the Egyptian government (Egyptian General Petroleum Corporation). Suriname development is a joint venture with TotalEnergies and Petronas. No single customer concentration risk.
Competitive Position
APA is a mid-size E&P with differentiated international exposure relative to purely Permian-focused peers. The Permian position (post-Callon) is competitive but subscale versus ConocoPhillips, Devon, or Coterra. The differentiation is the Suriname optionality — a genuine large-scale deepwater oil discovery that most small-cap peers lack — and the Egypt gas premium pricing agreement. APA has repaid $2B+ of debt since 2021, improving balance sheet flexibility.
Key Facts
- Founded: 1954 (as Apache Oil Program)
- Headquarters: Houston, Texas
- Employees: ~3,500
- Exchange: NASDAQ
- Sector / Industry: Energy / Oil & Gas Exploration & Production
- Market Cap: ~$7–9B
Financial Snapshot
ticker: APA step: 04 generated: 2026-05-13 source: quick-research
APA Corporation (APA) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $12.13B | $8.19B | $9.74B | +18.9% |
| Gross Margin | ~45% | ~40% | ~38% | |
| Operating Margin | ~30% | ~18% | ~15% | |
| Net Income | $3.67B | $2.90B | $804M | -72.4% |
| EPS (diluted, GAAP) | $11.02 | $9.25 | $2.27 | -75.5% |
| EPS (adjusted) | $7.68 | $4.53 | $3.77 | -16.8% |
FY2022 peak earnings reflect $90+ WTI prices. FY2023 sharp revenue decline from oil price normalization. FY2024 revenue recovery (+18.9%) driven by Callon acquisition (completed April 2024), but GAAP net income collapsed due to acquisition-related costs, increased D&A, and higher interest expense from assumed Callon debt. Adjusted EPS of $3.77 is the more useful profitability metric.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow (FY2024) | $3.6B |
| Adjusted EBITDAX (FY2024) | $5.9B |
| Free Cash Flow (FY2024) | ~$1.0–1.3B (post capex) |
| Debt Repaid (since 2021) | $2.0B+ |
| Suriname GranMorgu capex (2025) | $200M |
| FCF Return Commitment | 60%+ to shareholders |
| Total Proved Reserves | 1.056B BOE |
Key Ratios (approximate)
- P/E: ~6–7x (adjusted) | EV/EBITDA: ~3–4x | FCF Yield: ~12–15%
- Revenue Growth (FY2024): +18.9% (Callon-driven) | Adj. EBITDAX margin: ~61%
- Production guidance (FY2025): ~396,000 BOE/day (+3% YoY)
- Egypt arrears owed to APA: ~$1.3B (expected cleared by mid-2026)
Growth Profile
APA is a commodity-price-driven E&P with significant international optionality. The Callon acquisition added Permian scale but also debt and integration risk. The transformative long-term catalyst is Suriname Block 58 — the GranMorgu deepwater oil project reached FID in late 2024, with first oil expected mid-decade and gross capacity of ~220K bbl/day. Egypt's new premium gas pricing agreement ($3.58-4.25/Mcf) and clearing of $1.3B in government arrears are near-term cash flow catalysts.
Forward Estimates
- FY2025 production: ~396,000 BOE/day guided
- FY2025 capex: $2.5-2.6B (includes $200M Suriname + $100M Alaska)
- Egypt arrears: ~$1.3B expected recovered by mid-2026 (potential special dividend trigger)
- Suriname first oil: Expected ~2027-2028 (FID 2024, ~3 year construction)
- Analyst consensus: Mixed; stock down sharply from 2022 highs as commodity prices normalized
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $APA.