Financial PerformanceAPA's valuation is not considered obviously inexpensive compared to higher-quality peers, with an 8% debt-adjusted free cash flow yield.
Operational UpdateThe disappointing 3Q24 update included a weaker than expected 2025 guidance and the decision to cease operations in the North Sea by the end of 2029, which took the market by surprise.
Production OutlookThe production outlook disappointed with a reduction in 2025 oil volumes by approximately 5%, reflecting reduced activity in the US and sharper declines from the North Sea.