APA Corporation's stock plummeted 5.07% on Monday, as the U.S. energy operator reported disappointing fourth-quarter 2024 earnings that missed analyst expectations.
APA's adjusted earnings of $0.79 per share in Q4 fell short of the Zacks Consensus Estimate of $0.97, primarily due to lower commodity prices and higher costs from the recent Callon Petroleum acquisition. Despite posting a 32% year-over-year increase in revenues to $2.5 billion, the company's results were weighed down by integration costs and elevated operating expenses.
Additionally, APA's production guidance for Q1 2025 and full-year 2025 failed to meet expectations. Analysts also expressed concerns over cost reduction shortfalls, coupled with lower realized oil prices during the quarter. The company's lease operating expenses surged 31.7% year-over-year, further pressuring profitability.