APA Corp Surpasses Profit Predictions Amid Egyptian Gas Gains
APA Corp exceeded Wall Street's profit forecasts due to strong natural gas production in Egypt, higher prices, and a 29% rise in gas prices. Despite lower oil prices and production, APA's strategy in Egypt and securing additional drilling rights are boosting the company's prospects.
APA Corp surprised analysts by surpassing Wall Street's profit expectations in the latest quarter, mainly due to an uptick in natural gas production in Egypt and higher pricing models that countered the weaker oil market conditions.
The Houston-based energy company's shares rose 2% in after-hours trading, driven by a recovery in natural gas prices through increased demand and weather patterns affecting U.S. storage levels. APA's gas prices rose nearly 29% year-on-year in the second quarter.
Commenting on Egypt's gas output, APA CEO John Christmann noted the country exceeded its quarterly production guidance. The company also secured new exploration acreage there. Meanwhile, dropping crude prices were counterbalanced through strategic moves in Egypt, ensuring an overall profit that outstripped analysts' estimates.
(With inputs from agencies.)
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