Analysts at RBC Capital provided their views on APA Corporation (NASDAQ:APA) following recently announced Q1 earnings, with EPS of $1.19 coming in better than the Street estimate of $1.07. Revenue was $2.01 billion, beating the Street estimate of $1.89 billion.
The company reduced its fiscal 2023 budget by $100 million to $2.0-$2.1 billion but maintained the 404-408 Mboe/d production guidance and adjusted oil production of 159 Mb/d. Production guidance excludes potential gas production curtailments, which the analysts think is likely, although should not impact the company’s overall volume outlook.
The analysts expect the company to remain near its 60% minimum free cash flow shareholder payout strategy to focus remaining liquidity on reducing its outstanding revolver balance which was at $983 million in Q1/23.