Shares of oil producer APA Corp (APA) are soaring 5.10% in intraday trading following the company's strong first-quarter results and announcement of a significant asset sale. The stock's surge comes as investors react positively to APA's better-than-expected earnings and strategic moves to streamline operations.

APA reported a first-quarter adjusted profit of $1.06 per share, surpassing analysts' estimates of 83 cents per share, according to data compiled by LSEG. The company benefited from increased output, which helped offset the impact of falling crude prices during the quarter. Adding to the positive sentiment, APA announced the sale of its New Mexico Permian assets for $608 million, a move aimed at streamlining operations and focusing on core areas.

"We are seeing better cost savings, while asset divestiture accelerates debt reduction efforts," noted TPH Energy Research in their analysis of APA's performance. The company's strategic decisions appear to be resonating well with investors, as demonstrated by the stock's significant uptick. APA also provided insights into its operational strategy, stating that a $50 WTI breakeven price supports six Permian rigs, 12 Egypt rigs, and dividend payments, highlighting the company's resilience in various market conditions.