APA Corp. had net income attributable to common stock of $316 million for second-quarter 2021, compared to $388 million in first-quarter 2021. When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were $266 million, compared to first-quarter 2021 earnings of $346 million. Net cash provided by operating activities was $969 million.
“A combination of strong well performance in the US, 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 chief executive officer and president. Second-quarter reported production was 395,000 boe/d (70,100 boe/d of NGLs), and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 342,000 boe/d.
US production of 242,000 boe/d benefitted from well performance throughout the company’s Permian basin drilled but uncompleted (DUC) completion program. This more than offset slightly lower international adjusted volumes of 100,000 boe/d, which were impacted by lower cost recovery barrels in Egypt due to higher oil prices and extended operational downtime in the North Sea, the company said.
The company exceeded its US oil production guidance provided in May by 6% with better-than-expected performance from the DUC completion program. The company brought online 27 wells in the Permian basin, 5 of which were at Alpine High. The company drilled three Austin Chalk wells in Brazos and Washington counties and added a second rig in the Permian basin in late June as planned.
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.
For third-quarter 2021, the company expects upstream capital investment of $280 million and US production of 233,000 boe/d and international production of 102,000 boe/d.