APA Earnings: Maintaining Guidance, Reduced Budget, and Evaluating Oil Hub Project in Suriname

APA delivered adjusted production (excluding minority interest volumes and tax gross-up barrels related to its production-sharing contract in Egypt) of 325 thousand barrels of oil equivalent per day. That compares with prior guidance of 323-325 mboe/d. Volumes were above guidance in the Permian Basin and Egypt and slightly below guidance in the North Sea, where activity has been deferred in recognition of a less supportive UK fiscal regime. There was no change to the full-year production outlook, but management added a concerning disclaimer to the guidance that it excludes the impact of Permian gas curtailments amid Waha price weakness (signaling to the market that such curtailments are potentially on the horizon).