[ad_1]
Houston’s APA Corp. got a new name, a new corporate structure and a top ranking on the Chronicle 100 as rising oil prices lifted the company’s fortunes.
Formerly known as Apache Corp., the independent oil and gas producer announced it had formed a new holding company at the beginning of 2021 and began trading under the ticker symbol APA on the Nasdaq stock exchange. Throughout the year, APA remained well-positioned to benefit as crude prices recovered from negative prices during the pandemic to more than $100 a barrel.
CEO John Christmann said the company had few futures contracts, or hedges, in place that would have locked in lower prices just as oil markets took off. As result, he said, APA was “exposed to the robust commodity price rebound.”
The company’s revenues, meanwhile, grew 80 percent over the year to nearly $8 billion, making APA Houston’s 26th largest company by revenue.
APA’s vastly improved cashflow over the year enabled it to strengthen its balance sheet, reducing its debt by $1.2 billion. It also passed on much of its gains to shareholders, repurchasing 8.5 percent of its outstanding shares in the fourth quarter, a move that generally boosts stock prices. It also raised its dividend twice during the year.
Also making shareholders happy was a 120 percent increase in earnings per share. APA’s stock began 2021 at about $14 per share and soared to more than $26 by year end. It closed on June 14 at $46 a share.
Among APA’s other accomplishments in 2021, the company said it has modernized its production sharing contract in Egypt, which it said, “provides a foundation for increased investment and long-term production and free cash flow growth in one of our most important operating areas.” It also announced an exploration well marking a move toward its first oil development in Suriname. APA also operates in the United States, the United Kingdom and the North Sea.
In addition to its financial success, CEO John Christmann touts the company’s achievements in meeting ESG, or environmental, social and governance objectives, particularly in the United States, where it significantly reduced the flaring or burning of excess natural gas from oil production.
All this leaves the company well-positioned for years to come.
“Our strong performance in 2021 helped lay the groundwork for continued operational efficiencies, improved financial performance and ESG leadership as we strive to responsibly meet the world’s energy needs,” Christmann said.
[ad_2]
Source link
