** Shares of oil producer APA Corp APA.O rise 4.1% to $16.12

** Company late on Wednesday beat Q1 profit estimate, benefiting from a rise in output that helped offset falling crude prices

** APA reports Q1 adjusted profit of $1.06/shr vs estimate of 83 cents/shr - data compiled by LSEG

** Company also says it would sell its New Mexico Permian assets for $608 million as part of an effort to streamline operations and focus on core areas

** "We are seeing better cost savings, while asset divestiture accelerates debt reduction efforts" - TPH Energy Research

** Including session's moves, APA shares down 31.5% YTD

(Reporting by Sumit Saha in Bengaluru)

((Sumit.Saha@thomsonreuters.com;))