APA Corporation Set to Reveal Earnings Amid Declining Revenue Estimates

Houston, Texas – APA Corporation is scheduled to announce its financial results for the second quarter on August 6. Analysts predict a profit of 45 cents per share, with revenues estimated at $2.07 billion.

Before delving into the anticipated results, it’s important to note APA’s performance in the previous quarter. In the last report, the company surpassed expectations, posting adjusted earnings of $1.06 per share, which exceeded the Zacks Consensus Estimate of 83 cents. Revenues reached $2 billion, outperforming forecasts by 37.3%.

In terms of earnings consistency, APA has managed to exceed the consensus estimate in two of the last four quarters, while it fell short in the other two, resulting in an average surprise factor of 7.35%.

The current Zacks Consensus Estimate for second-quarter earnings reflects a sharp year-over-year decline of 61.54%. Similarly, the estimated revenue reflects a 25.80% decrease compared to the same quarter last year.

APA operates independently in the exploration and production of oil and gas. It is primarily active in the United States, Egypt, and the North Sea, with emerging interests in Suriname. The firm generates revenue by selling hydrocarbons, and its financial performance largely depends on production volumes and market prices.

Analysts expect APA’s revenues to suffer significantly this quarter, forecasting a drop from $2.54 billion in the prior year to the estimated figure of $2.07 billion. Expectations suggest a 31.4% decrease in revenues from its core segments, alongside a 10.3% dip from oil and gas sales.

On a positive note, APA’s cost reduction measures are likely to positively impact its profitability. Total expenses are anticipated to total $1.52 billion, representing an 18.5% reduction from the same quarter last year. Lease operating expenses are projected to decrease from $489.6 million to $460 million.

Despite these efforts, Zacks model analysis does not suggest a high probability of APA outperforming the earnings expectations this reporting season. The association of a favorable rank with potential earnings beats is not apparent in this case.

Finally, as the industry awaits APA’s earnings reveal, competitors like Plains Group, fuboTV, and Calumet Inc. are also set to announce their quarterly results on August 8.