APA beats profit estimates on higher oil production, prices
Adds share movement in paragraph 2, details and background in paragraphs 3,4,7
July 31 (Reuters) -Oil and gas firm APA APA.O beat analysts' estimates for second-quarter profit on Wednesday, helped by higher production and oil prices.
Shares were up 1.1% at $31.52 in after market trade.
The company raised its full-year estimate of net gain on third-party oil and gas purchases and sales to $350 million, up by $120 million from its estimates in May.
APA also lifted its cost savings expectations from its Callon Petroleum deal to $250 million, from $150 million earlier. The company bought its rival in an all-stock transaction valued at $4.5 billion earlier this year.
Houston-based APA's quarterly oil production was at 253,649 barrels per day (bpd), compared with 198,831 bpd a year earlier, while average oil prices rose 7.7% to $82.28 per barrel in the second quarter.
Brent crude LCOc1 rose in the second quarter on an average on OPEC+ production cut extension, expectations of strong demand and Fed rate cuts, prompting oil firms to produce more.
APA said it expects full-year capital to be at or below its outlook of $2.7 billion, as it plans to average at nine to ten rigs in the Permian Basin and 11 rigs in Egypt.
The company expects to curtail about 90 millions of cubic feet per day (MMcfpd) of natural gas in the third quarter, higher than its second quarter curtailment of 78 MMcfpd.
A slump in natural gas prices due to high inventories and lower demand have forced U.S. producers to cut down on production.
APA reported an adjusted profit of $1.17 per share for the quarter ended June 30, compared with analysts' average estimate of 94 cents, according to LSEG data.
Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila
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