03:02 PM EDT, 07/08/2024 (MT Newswires) -- APA's (APA) positive results in four areas in Q2 are key to narrowing a 25% underperformance versus the S&P Oil & Gas Exploration & Production Select Industry Index, UBS Securities said in a report emailed Monday.

The areas include synergies following the acquisition of Callon Petroleum, along with Permian Basis growth, UBS said. The focus also involves Suriname investment decisions, improving Egypt operations and reducing debt, the report said.

UBS expects interim updates on pricing, operational costs, marketing gains and Alpine High curtailments. Results for Q2 are expected in late July to early August.

APA anticipates improved Egypt operations after optimizing its drilling and workover rig fleet, reducing excess inventory and transitioning from 15 rigs in Q2 to an estimated 12 rigs by H2, the report said.

UBS reiterated its neutral rating on APA's shares and kept the price target at $38.

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