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APA Corporation APA ended routine flaring of natural gas at its onshore operations in the United States as part of its environmental, social and governance (ESG) initiatives.
The company’s aim to eliminate routine flaring at its U.S. operations was part of its extensive efforts to reduce its carbon footprint. Moreover, the drive to collect and market more natural gas comes as gas prices soar to unprecedented levels.
In early 2021, APA presented new ESG goals, the prime focus of which was the elimination of routine flaring at its operations by the year-end. The initiatives also include the total flaring intensity of less than 1% of gas produced and limiting freshwater use to less than 20% of overall water consumption.
The company reached its target ahead of schedule through an intensive effort that included communicating clear objectives, while adding compression and optimizing facilities so more gas could enter the gathering system for sale. Future wells in the U.S. Lower 48 onshore will not be commissioned without sufficient gas takeaway capacity.
Energy companies are under immense pressure from investors and environmental groups to reduce emissions, which involve the burning of gas at production sites. Notably, energy producers burn natural gas during well/processing disruptions and not having access to pipelines, practices that release carbon dioxide and methane into the atmosphere.
APA, through its majority-owned subsidiary Altus Midstream ALTM, invested more than $850 million in two natural gas systems, which helped remove more natural gas from the basins it operates. Beside this, new investments in compressors and connections to gas-gathering systems enabled it to end routine gas flaring ahead of its goal.
APA has a large Permian position and the capacity investment was a crucial step to move natural gas to markets, thereby, significantly reducing flaring for Permian operators. The company commits to reduce emissions, while continuing to deliver the abundant, reliable energy that the world needs.
Company Profile & Price Performance
Headquartered in Houston, TX, APA is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.
Shares of the company have outperformed the industry in the past three months. The stock has gained 53.3% compared with the industry’s 33.9% growth.
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Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are ConocoPhillips COP and Goodrich Petroleum Corporation GDP, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips’ earnings for 2021 are expected to rise 25.8% year over year.
Goodrich’s earnings for 2021 are expected to surge 82% year over year.
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