APA Corporation: Initiation Of Coverage – Robust Cash Flow Generation in Permian Basin & Egypt Operations

This is our first report on oil and gas major, APA Corporation. The company reported its fourth quarter and year-end 2023 results, with a series of noteworthy achievements throughout the year. The company delivered on all production and financial metrics close to original guidance, generated nearly $1 billion in free cash flow, and returned 66% to shareholders. In particular, the management was pleased with the strong performance from the Permian which offset lower than expected gross oil production in Egypt.