APA Corp (US) Stock Price, News & Analysis

Permian Resources (NYSE: PR) has announced the sale of its natural gas and oil gathering systems in Reeves County, Texas to Kinetik Holdings for $180 million in cash. The sale includes recently purchased and legacy company-owned midstream infrastructure but excludes water infrastructure and surface acreage.

The transaction is expected to close in Q1 2025, subject to regulatory approval. The divestiture aims to streamline operations and enhance value for investors while allowing Permian Resources to increase its residue natural gas sales at Gulf Coast pricing, reducing exposure to in-basin Waha pricing. The company expects no significant impact on its cash operating costs.

Kinetik Holdings (NYSE: KNTK) has announced a definitive agreement to acquire natural gas and crude oil gathering systems from Permian Resources for $180 million in cash. The assets, primarily located in Reeves County, Texas, include approximately 60,000 gross operated acres dedicated under long-term, fixed-fee agreements.

The transaction features over 250 Mmcf/d of primarily owned electric compression with a private electric distribution system, and is expected to handle more than 150 Mmcf/d of gas gathered volumes and 25 Mb/d of crude gathered volumes in 2025. The assets are adjacent to Kinetik's existing Delaware South system and will be integrated post-closing. The deal is expected to close in Q1 2025, subject to customary conditions.

APA has launched exchange and tender offers for notes issued by its subsidiary Apache The exchange offers allow eligible holders to swap Apache notes for new APA notes with identical terms, plus cash consideration. Simultaneously, APA is offering to purchase up to $1 billion in Apache notes for cash.

The offers include an early participation premium for holders who tender before December 16, 2024. The exchange offers include 14 different series of notes, while the tender offers target specific series with individual caps. APA is also seeking consent to amend the Apache notes' indentures, requiring majority or 66⅔% approval depending on the series.

The offers will expire on January 2, 2025, with settlement expected around January 9, 2025. The tender offers are subject to financing conditions.

APA announced its third-quarter 2024 financial and operational results. Detailed results are available on the company's website. APA will host a conference call on Nov. 7 at 10 a.m. Central time to discuss these results. A replay of the call will be accessible for one year on the company's 'Investors' page.

Kinetik Holdings reported strong Q3 2024 financial results with net income of $83.7 million, a 94% increase year-over-year, and Adjusted EBITDA of $265.7 million, up 23%. The company increased its 2024 Adjusted EBITDA guidance to $970-1000 million and tightened Capital Expenditures guidance to $270-290 million. Natural gas processing volumes reached 1.71 Bcf/d, a 15% increase year-over-year. Kinetik increased its quarterly dividend by 4% to $0.78 per share and expanded its ownership in EPIC Crude to 27.5%. The company announced plans for a new pipeline connecting Delaware North and South systems, capable of flowing over 150 Mmcf/d of rich gas.

APA has appointed Kenneth M. Fisher to its board of directors. Fisher, 62, currently serves as executive vice president and CFO of ChampionX. He previously held the same position at Noble Energy until its Chevron acquisition in 2020, where he also chaired Noble Midstream Partners. His career includes senior leadership roles at Shell plc and General Electric. Fisher brings extensive financial and leadership experience across the oil and gas sector, which will provide valuable insight as APA continues to meet global energy needs.

Kinetik Holdings Inc. (NYSE: KNTK) has announced a 4% increase in its quarterly cash dividend to $0.78 per share ($3.12 annualized) for Q3 2024. The dividend will be paid on November 7, 2024, to shareholders of record as of October 28, 2024. CEO Jamie Welch cited strategic transactions and business outperformance as reasons for the increase, stating they've reached their 3.5x leverage target earlier than expected.

The company will host its Q3 2024 results conference call on November 7, 2024, at 8:00 am CST, with the earnings release scheduled for November 6, 2024, after market close. Kinetik also reminded shareholders of its Dividend Reinvestment Plan (DRIP), which is open to all shareholders and can be accessed through the Broadridge website or by contacting Broadridge Corporate Issuers,

APA (Nasdaq: APA) has announced the retirement of Anthony Lannie, executive vice president and general counsel, effective Oct. 9, 2024. David J. Bernal has been promoted to vice president Legal and acting general counsel. Bernal, who joined APA in 2008, has extensive experience in commercial litigation and has supported various company initiatives. Prior to joining APA, Bernal served as a Texas state district judge and worked as a legal associate at Baker Botts and King & Spalding.

John J. Christmann, IV, CEO of APA , expressed gratitude for Lannie's 21 years of service and confidence in Bernal's leadership as he takes over the corporate legal function.

APA has released supplemental information for its third-quarter 2024 financial and operational results. Key highlights include:

• Estimated average realized prices for oil, NGL, and natural gas in the US and internationally
• Egypt tax barrels at 35 MBoe/d
• Realized gain on commodity derivatives of $3 million
• Dry hole costs between $10-$15 million
• Net gain on oil and gas purchases and sales of $178 million
• General and Administrative Expense of $100 million

APA curtailed approximately 103 MMcf/d of U.S. natural gas production and 10,000 barrels per day of natural gas liquids due to weak Waha hub prices. The company also announced a $950 million divestiture of non-core Permian Basin assets. APA repurchased 0.1 million shares at an average price of $29.32 per share during Q3. The company will host its Q3 2024 earnings call on November 7 at 10 a.m. Central time.