Feb 26 (Reuters) - U.S. shale producer APA Corp ( APA )

fell short of Wall Street expectations for fourth-quarter profit

on Wednesday as weak commodity prices offset a rise in

production.

The company's shares fell 1.2% to $21.74 after the bell.

Brent crude futures fell 3% in 2024 as major

consumer China's economy remained weak and the OPEC+ producer

group postponed planned supply increases and extended deep

output cuts to the end of 2026 in a sign of weak demand.

In the fourth quarter, APA produced 488,000 barrels of oil

equivalent per day (boepd), higher than the 414,000 boepd a year

earlier.

The company said that on an average it realized $72.42 for

every barrel of oil produced, compared with $81.36 per barrel a

year earlier. Meanwhile, average realized prices for natural

gas, fell over 24% to $2.20 per thousand cubic feet in the

quarter.

Houston-based APA said it expects current-year adjusted

production to come in at 396,000 boepd, with output in the

Permian basin expected to rise slightly from a year earlier.

The company, which curtailed production in all quarters of

fiscal 2024, said current-year U.S. gas production volumes would

benefit from no "price-related curtailments".

In January, APA said it curtailed about 23,500 boepd of

production in the fourth quarter. In the preceding three

quarters, it curtailed production due to persistent weakness in

natgas prices in the Permian basin.

The company said on Wednesday it would undertake significant

cost reduction initiatives aimed at streamlining the business.

It is targeting at least $350 million in annual savings by the

end of 2027.

APA posted an adjusted profit of 79 cents per share for the

three months ended December 31, compared with the average

analyst estimate of 97 cents, according to data compiled by

LSEG.