APA Corporation Provides First-Quarter Supplemental Information and Schedules Results Conference Call for May 6 at 10 a.m. Central Time

HOUSTON, April 15, 2021 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain first-quarter 2021 financial and operational results.

Supplemental quarterly information
To further assist analysts with their first-quarter earnings models, the company is providing the following estimates:

Estimated Average Realized Prices – 1Q21
	Oil (bbl)		NGL (bbl)		Natural Gas (Mcf)
United States	$57.00		$23.00		$4.40
International	$61.00		$47.50		$3.40

Egypt tax barrels:	24-25 MBoe/d
Realized gain on commodity derivatives (before tax):	$148 million
Unrealized gain on commodity derivatives (before tax):	$26 million
Dry hole costs (before tax):	$19-23 million
Net loss on oil and gas purchases and sales (before tax):	$54 million

First-quarter 2021 production guidance update
APA is providing the following adjustments to its expected production for the first-quarter 2021: Total Adjusted Production guidance remains 324 Mboe/d, which reflects an increase in U.S. volumes to 208 Mboe/d from previous guidance of 204 Mboe/d. Roughly half of this increase is attributable to oil volumes. Partially offsetting higher U.S. volumes, International adjusted production for the first-quarter 2021 is estimated at 116 Mboe/d, compared to 120 Mboe/d in the prior guidance, which is a result of production sharing contract affects associated with higher realized oil prices in Egypt and extended maintenance downtime in the North Sea.

Impact of hedging and marketing activity in 1Q21   
As ordinary course of business, Apache’s marketing team generally seeks to maintain a balance between “first of month” and “gas daily pricing” for its U.S. natural gas portfolio. This is typically implemented through a combination of physical and financial contracts.

In late January 2021, Apache entered into financial contracts that increased its exposure to “gas daily pricing” and reduced its exposure to “first of month” pricing for the month of February.  Given the subsequent and unprecedented daily gas price volatility across Texas during February, these contracts resulted in a 1Q21 realized gain of $147 million.