APA Beats Q2 Profit Estimates Amid Rising Oil Prices
Oil and gas producer APA exceeded Wall Street's expectations for its second-quarter profit due to higher oil prices. The average price of Brent crude, a benchmark for global oil supplies, rose by 19.2% from last year to $89.62 per barrel during the quarter.
APA's realized price for each barrel of oil produced increased to $98.24 from $65.58 in the same period last year. The company's operations are primarily based in the United States, followed by Egypt, the North Sea, and Suriname. However, APA's quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day (boepd) due to lower volumes from its US, Egyptian, and North Sea operations.
Despite the decline in production, APA increased its full-year US oil production forecast to 123,000 bpd from 122,000 bpd. The company also expects to achieve about $500 million in annualized savings by the end of 2026, up from its earlier target of $450 million, as it broadens cost-reduction measures.