APA Corporation Announces Second-Quarter 2021 Financial and Operational Results

Key Takeaways

  • Reported production of 395,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 342,000 BOE per day; 
  • Generated net cash from operating activities of $969 million, adjusted EBITDAX of $1.01 billion, and free cash flow of $396 million;
  • Advanced agreement to modernize Egypt Production Sharing Contracts; expected review by Egyptian Parliament in the fall; and
  • Announced appraisal drilling success offshore Suriname, moving closer to goal of commercial oil development.

HOUSTON, Aug. 4, 2021 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the second-quarter 2021. 

APA reported net income attributable to common stock of $316 million, or $0.82 per diluted share. When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were $266 million, or $0.70 per diluted share. Net cash provided by operating activities was $969 million, and adjusted EBITDAX was $1.01 billion. 

“A combination of strong well performance in the U.S., continued capital and cost discipline, and a favorable price environment enabled free cash flow generation of nearly $400 million during the quarter,” said John J. Christmann IV, APA’s CEO and president. “I am also very pleased with the progress we have made on our ESG initiatives, Production Sharing Contract modernization in Egypt and appraisal drilling in Suriname.”

The company is advancing key ESG initiatives and announced that it will achieve its goal of eliminating routine flaring onshore in the U.S. in the third quarter of this year. The focus on that goal has also helped drive down flaring intensity, which is tracking below the company’s goal of less than 1% for the year.
In May, the company reached an agreement in principle to modernize Production Sharing Contract terms in Egypt. The agreement has been finalized and signed by the Egyptian Ministry of Petroleum and Mineral Resources and the Egyptian General Petroleum Corporation and is proceeding through the next stages of the approval process. 

In Suriname, APA and TotalEnergies announced last week a successful appraisal well in the Sapakara area, which encountered approximately 30 meters (98 feet) of net black oil pay in a single, high-quality zone of the Campano-Maastrichtian reservoir. This moves the JV closer to its goal of sanctioning the first commercial oil development in Block 58. Upon completion of drilling operations at Sapakara, the Maersk Valiant will move to the Bonboni exploration prospect approximately 45 kilometers to the north.   

Second-Quarter Summary

Second-quarter reported production was 395,000 BOE per day, and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 342,000 BOE per day. U.S. production of 242,000 BOE per day benefitted from strong well performance throughout the company’s Permian Basin DUC completion program. This more than offset slightly lower international adjusted volumes of 100,000 BOE per day, which were impacted by lower cost recovery barrels in Egypt due to higher oil prices and extended operational downtime in the North Sea. APA’s second-quarter upstream capital investment was $257 million, which was below guidance primarily due to timing.
APA, excluding Altus Midstream, had total debt of $8.0 billion, cash and cash equivalents of $1.2 billion, and $3.2 billion available capacity under its undrawn revolving credit facility at the end of the quarter.

Looking Ahead

“APA is capable of delivering strong and sustainable free cash flow for many years to come. At current strip prices, we expect to generate approximately $1.7 billion of free cash flow this year to support our debt reduction goals,” Christmann concluded. 

Conference Call

APA will host a conference call to discuss its second-quarter 2021 results at 10 a.m. Central time, Thursday, Aug 5. The conference call will be webcast from APA’s website at and, and the webcast replay will be archived there as well. The conference call will also be available for playback by telephone for one week beginning at approximately 4 p.m. Central time Aug. 5. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 6953249. Sign up for email alerts to be reminded of the webcast at

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and gas in the United States, Egypt and the United Kingdom and that explore for oil and gas offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, Specific information concerning Suriname, ESG performance and other investor-related topics are posted at

Additional Information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow (non-GAAP financial measures) to GAAP measures and information regarding adjusted production. APA’s quarterly supplement is available at

Non-GAAP Financial Measures

APA’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in Apache Corporation’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 25, 2021, and in our quarterly reports on Form 10-Q for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and Apache Corp. undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Cautionary Note to Investors

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. APA may use certain terms in this news release, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache Corporation's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020 available from APA at or by writing APA at: 2000 Post Oak Blvd., Suite 100, Houston, TX 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at


Investor:    (281) 302-2286    Gary Clark
Media:       (713) 296-7276    Phil West                

Click here for the full release with quarterly financial statements.