APA Corp. CEO John Christmann lays out his short-term headwinds for energy in 2024. The risks he sees and how long they’ll last.
John welcome uh delighted to have you with us your company produced more oil in the third quarter of last year 16% more than a year prior the question that comes out of that is why are you doing that is the market inbalance or is it overs supplied I mean you know you look
Today and uh there is definitely some short-term headwinds uh long-term we are very constructive on the oil market and if you look we are really back to where we were pre levels so a lot of the recovery and you saw the growth last year uh we worked down a large duck
Count uh in the US um but we’ve really kind of gotten back to our preo levels and in general we will Target to sustain the company or grow at very low single digits last week was a rough week for oil prices where do you see prices
What’s the range for this year if you had to guess I mean I think we’re in a world today where you know clearly it’s an election year uh historically election years have been hard there’s a lot of battle to try to keep prices down everything there um but I you know like
I said we think that uh inventory is in a pretty good place you know you get to the back half of this year uh we’ll see some draws and we’re very constructive on oil how much do you worry about what’s going on in the Middle East the
Red Sea and so forth is it disruptive to you is it an interruption to you is it a not existential but how big is the threat Tyler you know uh apache’s the largest oil producer in the country of Egypt and so we border Egypt borders
Gaza uh I was just over there last week in fact just returned um you know we’re fortunate that uh our operations are in the Western desert so we are west of Cairo uh you know we have not been impacted in that light but I can tell you in general you know things are
Delicate in the Middle East today uh you’ve got a lot of cross currents and uh you know things are very fragile over there right now this business business your business has been characterized by a lot of consolidation in recent years um and you bought a large company last
Year Kalen petroleum correct uh that would be we entered into a Verger agreement early this year January early this year you know and uh so what is the attraction of consolidation how much more acquisition do you expect Apache might do and what kinds of companies are
On your radar screen if you look back over my tenure uh kalon’s really the first sizable deal that uh we’ve done and so you know we’re a a we believe in a diversified portfolio we have international operations as well as us operations this buls you up in the peran
Bas uh this adds to kind of our Backbone in the peran which is where we’ve had strong performance strong results uh if you look at our perian uh we’ve got critical mask and scale in the Midland Basin and you know what Kalan would do for us is really bolster our Delaware
Basin and so um you know we look at it as a you know a strategic uh transaction uh it’s very opportunistic and it’s creative so you know could you do more acquisition might you I just say just say we have a very high bar and uh you
Know we’re you have to have a high bar uh you know when you look at our Equity we feel like it’s very attractively valued I mean it’s very attractive and so you’re going to you know have a high bar in in in this transaction cleared
That bar but like I said this is the first you know sizable transaction that we’ve done in in my tenure uh you know nine years John Chrisman thank you very much for being with us thank you
