"We are committed to managing our costs while enhancing our production capabilities, allowing us to deliver solid returns to our investors even in a fluctuating market environment."
— John Christmann, CEO
03Detailed Report
0HGC.L
APA Corporation
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
In the second quarter of 2024, APA Corporation (0HGC.L) reported robust financial performance, with revenue soaring 41.59% year-over-year to $2.54 billion. This remarkable growth was primarily driven by increasing production levels and higher oil prices. Consequently, net income jumped to $541 million, reflecting a staggering 41.99% year-over-year increase, alongside a significant improvement in Earnings Per Share (EPS) which rose 17.74% to $1.46.
Despite a competitive landscape in the energy sector, APA's operational efficiency continued to enhance profitability. The operating income surged to $894 million, a 34.44% increase compared to FY2023, bolstered by effective cost management and strategic investments in drilling and production across key markets. Investors should consider these positive trends, as they signal APA's resilience and functionality in adapting to dynamic market conditions.
Key Performance Indicators
Revenue
Increasing
2.54B
QoQ: 30.34% | YoY: 41.59%
Gross Profit
Increasing
1.06B
41.57% margin
QoQ: 12.93% | YoY: 23.05%
Operating Income
Increasing
894.00M
QoQ: 45.84% | YoY: 34.44%
Net Income
Increasing
541.00M
QoQ: 309.85% | YoY: 41.99%
EPS
Increasing
1.46
QoQ: 231.82% | YoY: 17.74%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Metrics Overview
- Revenue: $2.54 billion, up 41.59% YoY and 30.34% QoQ
- Net Income: $541 million, an increase of 41.99% YoY and an impressive 309.85% QoQ
- EPS: $1.46, reflective of a 17.74% YoY increase and 231.82% QoQ
- Operating Income: $894 million, growing 34.44% YoY and 45.84% QoQ
- Gross Profit Margin: 41.57% down slightly from 45.38% in Q1 2024 due to increased costs of revenue.
The strong performance metrics are indicative of APA’s solid operational foundation and its ability to capitalize on rising energy prices and increased demand for oil and gas production.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.54B
41.59%
30.34%
Gross Profit
1.06B
23.05%
12.93%
Operating Income
894.00M
34.44%
45.84%
Net Income
541.00M
41.99%
309.85%
EPS
1.46
17.74%
231.82%
Key Financial Ratios
Gross Profit Margin
Excellent
71.70%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
66.10%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
19.40%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.68%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
9.98%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.01
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.26
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
5.11x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.04x
Price-to-book ratio reasonable for profitable companies
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