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Oil and gas producer APA Corp (APA) said it has curtailed production of natural gas and natural gas liquids in response to a decline in prices.
The company expects to post an average realized price of $1 per thousand cubic feet of natural gas in the U.S. for the quarter ended June 30, representing a 50% decline compared to the first quarter. Similarly, for NGLs, APA expects to book an average price of $19.80 per barrel in the U.S. compared with $28 per barrel in the year-ago quarter.
Retail sentiment on Stocktwits about APA was in the ‘bearish’ territory.
U.S. natural gas prices have been pressured during the second quarter due to a rise in supplies and mild demand. APA said it curtailed about 10 million cubic feet per day of U.S. natural gas production and 750 barrels per day of U.S. natural gas liquids production in the second quarter.
Oil companies are already grappling with low prices this year due to uncertainty over global demand, stemming from tariff concerns and worries of OPEC+ oversupply. Top oil producer Exxon Mobil (XOM) flagged a $1.5 billion earnings hit from weak oil and gas prices earlier this week.
While the Energy Administration data has shown a rise in gasoline demand last week, a fresh set of tariffs imposed by the Trump administration has raised fresh concerns over growth in oil demand.
Separately, APA stated that it had generated approximately $575 million from asset sales in New Mexico. However, the sale to Permian Resources resulted in about 1.8 thousand barrels of equivalent per day reduction to the company’s second quarter U.S. production.
APA stock has fallen 13.2% this year.
Also See: Gold Prices Rise As Dollar Weakens Amid Uncertainty With Trump Tariffs
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