APA Corporation


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APA Corporation: What Are The Biggest Cost Synergies from Callon Acquisition?


In APA Corporation’s first-quarter 2024 financial and operational results, the performance seemed rather mixed. In terms of production efficiency, APA Corporation reported a notable 16% increase in U.S. oil volumes compared to the same period last year, primarily driven by its operations in the Permian Basin. This marks the fifth consecutive quarter where the company has met or exceeded its U.S. oil production guidance, underscoring its ability to maintain production efficiency consistently. The integration of Callon is expected to further enhance APA’s cost efficiencies and operational capabilities, with the company raising its estimated annual cost synergies by 50%, from $150 million to $225 million. Additionally, APA’s strategic exploration ventures continue to show promise. The exploration efforts in Alaska have reaffirmed a working petroleum system, suggesting potential for future development, while ongoing studies in Suriname could lead to final investment decisions by the end of the year, reflecting APA’s commitment to expanding its operational base.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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