Thank you, John.
income or diluted common For $X.XX generally share. the fourth accounting principles, of million $XXX accepted per quarter, reported consolidated under APA net
to investment results deferred As was U.K. and our the net $XXX the core of Fieldwood usual, outside of $XXX include properties. liability our items increase these the benefit significant most tax write-off of APA's former million subsidiaries in earnings, U.S. on are in a a million that which related
smaller other or adjusted share. and items, for million per quarter fourth net these income $X.XX was Excluding $XXX the
due reserve accelerated High third required substantially guidance, was off. all than negative depreciation be expense reserves Alpine second Alpine the SEC of higher the of for prices guidelines at Fourth and quarter written that gas with High, primarily DD&A quarters XXXX, Waha to
Sea cargo liftings cargo recognition in guidance, first in quarter the X/X High and Alpine sales value affect impact of result, largely on the slightly a in and operating carrying quarter North but XXXX. it an has extra quarter than the depreciated due fourth there impact Fourth timing of does North no the LOE. reported was to of quarter. of production, lease the higher As revenue a came similar be in the also Sea both lifting will expense
returned share quarter. fourth quarter, the through cash APA any XX% generated amount million in and shareholders highest of to $XXX we quarter of dividends the in XXXX flow in this free the of repurchases,
we in XXXX, full any and returned year, returning rating we For to significant generated levels flow acquisition. million levels last debt net we to needs. scale October. published flow, close X of and only free for credit XX% year, upgraded sheet In shareholders. made strengthening reconciliation definition achieved are debt APA's our refer BBB- Please increased the S&P lower the balance pre-Callon the of to to progress which our free $XXX cash cash Recognizing months to closing after in
assets. reflect anticipated abandonment. all better and wells bankruptcy to capacity, to In result rating independent the the abandon as the This one and party ratings, increase above is the Wrapping or does seafloor X XXXX, the on assets facilities maintains current in Fieldwood own let properties. and up and cost and party or operates increase Our to Fieldwood at third an agencies. in XXXX, not the this producing liability required third ultimate manage the was me objective a notch achieve monitors contingent nonproducing commentary ratings of awaiting assets net plug to BBB change million the the remove ruling In $XXX address for any infrastructure. our
more high. in to sheet. take portion of the directly activities contingent explore costs, the on a believe free increases utilized, enable system. third Until party's actions future to now cash management net to a our reduction avenues the we too all large the cost reduce for these prudent security these balance We flows and cost With we manage to assets these liability cash are remain resultant
this later this to resolution year. expect We
to XXXX Turning our outlook.
details expect front-half provide to due a Starting with be with our the spending weighted our timing to cadence, you year. spending guidance our capital respect the more me few for Let to Permian calls our primarily due first Basin. Suriname level, of Despite a planned and steady in activity also spend is half the in capital Alaska. timing the of facility weighted, to exploration should primarily activities
oil of effects per day. the first volumes quarter XXXX for for and production sales XXX,XXX adjusted at U.S. the oil production, Looking the barrels Callon of were asset
the be With in is the in oil XXX,XXX mid-single U.S. range. digits Total volumes. decline to the volumes increase we curtailments year. adjusted XXX,XXX price-related X-rig a program not volumes planned in Egypt, day modest should grow for Permian do with as anticipate production year-over-year. production should any U.S. to slightly per XXXX, expected this gross In barrels
On in the initiated have we results. seen gas and very activity quarter the fourth front, drilling encouraging
As gas expect gross grow we production indicated, now John to year-over-year.
from with the $X.XX expected per Our Mcf the first $X.XX year, to in the least in average per through increase quarter. to ] in continue average realized realized the to Average expected full gas to at fourth price quarter price will $X.XX year is [ Mcf range. the grow $X.XX
to investment. gas in need continue program highlight As beyond determine will we ability growing the additional gas we'll our any infrastructure production look for success and XXXX,
operating lease to expense. Moving
improvement we per For in operated streamlining change step Permian made, the our the in expect synergies of The U.S. Callon. have operating and lower efficiency about to curtailed the BOE our XXXX. than gas to U.S., also harvesting unit the contributes reflects per XX% return progress LOE. of LOE the This volumes from acquisition we portfolio be in
areas, compensation. In related see but XXXX. comparing to million G&A, for XXXX. it year least by year, that benefiting This significantly our and that increasing fact, incentive spread at G&A is of down difficult G&A costs business, Cheniere terms up it may have Total the in actual XXXX appreciation overhead level. guidance is in going causing long-term shaping to perform strong overhead increase are to XXXX appear our a are, multiple and costs that total our similar LOE XXXX is $XX The to G&A gas by costs remains to methodology expense costs seen impacted guidance. overhead the and and Recall was to for are we basis exploration relationship and APA international allocation contract. through Waha a supply between are capital LNG investment costs expense plans gas in most advantageous trading including to significantly third-party overhead allocated overhead impact expense items despite decrease G&A. in our at mark-to-market XXXX These prices
gain prices, Given generating $XXX we of strip for current combined net million anticipate a XXXX.
end Lastly, cost I additional would reduction like initiatives. color with our to around some
We targeting cost $XXX are the annualized by end savings million in XXXX. of
capture that although not quick some hit opportunities near-term certainly focus. is lower Our a goal just to is costs, to
and goal to structure cost rightsize purposeful a is sustainable long-term, Our our to entire achieve outcome.
focus In operating near which simply facilities practices. will field the naturally our completions as practices life management as for field well discretion. and things address capital like of in on overhead resource will the Much and is matter and of term, term, this in intermediate as structure it of and cost operating automation. such drilling efforts, In a choice cost this are field day-to-day and our structure
like will to and is accounting set longer-term systems This why have the longer it we term, ingrained more infrastructure and out targets deeply procedures. and For structures IT address applications XXXX.
things these effort. take happening time quickly others and of more are will Some and
objective our million rate to upon anticipate capture XXXX, $XXX $XX savings, an around year. is to actual million improve hope this go point, of In by which is the of this something $XXX we in-year end achieve At through we savings year. million of of the we as to run
salaries organization starting in This mentioned. incentive targets good our both reduction greater compensation the overhead and our and made we combined a The annual reduction John important for our in global on run entire XX% year, have Already by these long-term are this therefore is count per in progress with cost the approximately $XX rate than followed year included February. that savings Our programs. and in our steps was reduction officer organization, simplification effort restructuring structure with an benefits. X million are short-term
carry cash quality of portfolio, In foundation growing ongoing and first the for with enhancement structure years. next as even the will of buybacks next per X flow free the the flow in that combined flow core decade. then cash sustainability XXXX growth our more closing, built into the increases cost in capital that our Over significantly free a free the into share time returns a Suriname of period, our cash result oil share same framework. over rightsizing lay will
Q&A. call I over to operator the And will with the that, turn for
