Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Shares of APA Corporation (NASDAQ:APA) fell 7% after the energy company’s fourth-quarter earnings per share (EPS) of $0.79 fell short of the consensus estimate of $0.94. The company’s performance in the last quarter was below investor expectations, leading to a decline in stock value during the trading session.
APA Corporation announced its financial and operational results for the fourth quarter and full year of 2024, which included a full-year net income attributable to common stock of $804 million, or $2.27 per diluted common share. Adjusted for specific items, the earnings were $1.3 billion, or $3.77 per diluted common share. The fourth-quarter production reported was 488,000 barrels of oil equivalent (BOE) per day, with adjusted production at 418,000 BOE per day.
Despite the earnings miss, the company highlighted several strategic achievements throughout the year, such as the acquisition of Callon (NYSE:CPE) Petroleum Company, the final investment decision for the GranMorgu Phase 1 project in Suriname, and a new gas price agreement in Egypt. These actions are part of APA’s efforts to enhance its portfolio and position itself for long-term growth.
For the upcoming year, APA plans to invest between $2.5 and $2.6 billion in upstream oil and gas capital, with an expected total adjusted production of 396,000 BOE per day, which is a 3% increase from 2024. The company also intends to implement cost-saving initiatives targeting $350 million in run-rate savings by the end of 2027 and is committed to returning at least 60% of its free cash flow to shareholders.
TD Cowen analyst David Deckelbaum provided a mixed view on the company’s results and outlook, stating, "APA beat 4Q with total production 2% above the Street, EBITDAX 10% above, and capex 4% better. Looking forward, the company announced a large cost-saving initiative that targets $350mm in annual savings by YE27 through reductions of overhead, LOE, and capital. Cost savings and efficiency gains in the Permian help spend for ’25, though our oil estimates decline by 2% driven by USO (NYSE:USO)."
APA Corporation’s stock movement reflects investor reaction to the company’s recent financial results and forward-looking statements. Despite the earnings miss, the company’s strategic initiatives and cost-saving plans could provide a foundation for future performance improvements.
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