APA Corp: North Sea Not A Loss Anymore
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APA Corp is ceasing operations in the North Sea due to increased UK taxes, resulting in an $800 million impairment. The North Sea operations contributed only 5% of Q3 revenue. Positive developments in Suriname with Total could potentially double volumes, with first oil expected in 2028.
January 14, 2025 | 1:45 pm
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APA Corp is exiting the North Sea due to increased UK taxes, leading to an $800 million impairment. The North Sea contributed only 5% of Q3 revenue. Suriname developments with Total could double volumes, with first oil expected in 2028.
The decision to cease North Sea operations due to increased UK taxes results in a significant $800 million impairment, negatively impacting APA's short-term financials. However, the North Sea only contributed 5% of Q3 revenue, mitigating the impact. Positive developments in Suriname with Total could boost future volumes, but benefits are long-term with first oil expected in 2028.
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