Shale producer APA beats first-quarter profit estimates
U.S. shale oil producer APA surpassed Wall Street expectations for the first-quarter profit?Wednesday as higher oil?prices offset a 'decrease in output.
The quarter reported was marked by extreme volatility and macro-uncertainty in global oil prices, as the U.S. and Israeli war against Iran disrupted key supply routes and damaged energy infrastructure?in Middle East.
APA reported that its realized price per barrel of oil increased to $78.69 from $73.73 a year earlier.
The total quarterly production dropped 5.7%, to 442,352 barrels equivalent per day (boepd), due to lower output from the U.S.
The majority of the company's activities are located in the United States, followed by Egypt and the North Sea.
Due to the geopolitical uncertainties, energy producers have been largely hesitant in increasing their output after the rise in oil prices.
APA lowered 'its annual production estimate to approximately 431,000 boepd from 436,000 previously. It continues to 'expect U.S. crude oil production to be 122,000 bpd.
The company expects to reduce production by 35,000 boepd in the second quarter, but does not anticipate any further reductions in the second half 2026.
The company expects to produce?405,000 boepd during the current quarter.
According to data compiled and analyzed by LSEG, the Houston-based company reported a?profit adjusted of $1.38 for the three months ended March 31 compared to analysts' average estimates of $1.12. Reporting by Vallari Srivastava, Bengaluru. Editing by Sriraj Kulluvila
(source: Reuters)
