APA Corp (US) (NASDAQ:APA) stock fell 1.66% (As on Feb 22, 11:46:16 AM UTC-4, Source: Google Finance) after the company missed analysts’ forecasts and revenue that topped expectations. During the fourth-quarter 2021, APA reported net income attributable to common stock of $382 million. The company has reported production of 386,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 331,000 BOE per day. APA has delivered net cash from operating activities of $1.1 billion and adjusted EBITDAX of $1.3 billion. Further, the company initiated a 60% capital return framework for shareholders, raised dividend for the second time in 2021, and repurchased $847 million of stock at an average price of $27.13 per share.

APA in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.29, beating the analysts’ estimates for the adjusted earnings per share of $1.47. The company had reported the adjusted revenue of $2.4 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.93 billion.

APA is expecting to generate approximately $6.5 billion of FCF over the next three years based on a WTI price of $78/barrel (3-year strip). The company has budgeted 2022 upstream capital investment of $1.6 billion, of which $200 million is dedicated to exploration and appraisal activities, primarily in Suriname; planning similar level of capital activity in 2023 and 2024. The company is continuing to streamline portfolio; $805 million mineral rights sales package in the Delaware Basin to close by the end of February. The company is establishing new short-term incentive compensation-linked ESG goals for 2022, reducing upstream routine flaring in Egypt by 40%, initiating new programs to promote and deliver increased supplier diversity, and developing a future of work strategy with workplace and technology enhancements; and introducing a long-term incentive compensation ESG goal to reduce carbon dioxide emissions by 1 million tonnes annually from projects by 2024.

Meanwhile, the company today announced an oil discovery at the Krabdagu-1 (KBD-1) exploration well. KBD-1 is located on Block 58 offshore Suriname, approximately 18 kilometers southeast of the Sapakara South-1 appraisal well. APA Suriname holds a 50% working interest in the block, with TotalEnergies, the operator, holding a 50% working interest. While the rig is on location, TotalEnergies will progress with drill stem and other wellbore testing to assess the resource potential and productivity of two primary reservoirs.