APA Corporation Earnings Recaps
Q2 2026
Aug 8, 2026
APA Corporation’s shares rose 8.6% following better-than-expected operational efficiency and a raised oil production outlook, driven primarily by reduced capital intensity in the Permian and sustained production in Egypt.
Key takeaways
- Full year Permian oil production guidance was raised to 123 thousand barrels per day, up from 120 thousand barrels, alongside a reduction in rig count from 8 to 4.
- Capital expenditure guidance remained flat at $1.3 billion despite inflationary headwinds, reflecting significant improvements in drilling and completions efficiency.
- Egypt production met guidance, supported by higher gross volumes and a revised pricing agreement enhancing gas portfolio value.
- Annualized run rate cost savings target increased to $500 million, up from the initial $450 million target at the start of the year.
- APA continues to prioritize balance sheet strength and shareholder returns, targeting $3 billion net debt and maintaining at least 60% of free cash flow returned to shareholders in 2026.
Q1 2026
May 9, 2026
APA Corporation shares fell 7.2% following results that disappointed investors due to a lowered Egypt adjusted production volume guidance and a cautious outlook on commodity price impacts, despite raising U.S. oil production targets.
Key takeaways
- U.S. full-year oil production guidance was raised to 122,000 barrels per day, reflecting confidence in Permian operational execution.
- Egypt adjusted production guidance was lowered to account for Production Sharing Contract (PSC) impacts resulting from higher commodity prices, signaling a headwind in this key segment.
- Capital spending and operating costs came in below guidance, demonstrating disciplined cost management amid inflationary pressures.
- Nearly $500 million in free cash flow was generated in the quarter, supported by operational efficiencies and favorable pricing.
- The company reaffirmed no changes to upstream capital or lease operating expense (LOE) guidance and maintained focus on capital discipline and balance sheet strength.
Q3 2025
Nov 6, 2025
APA Corporation reported strong third-quarter results, exceeding production guidance while maintaining cost discipline, positioning the company well for future challenges and opportunities.
Key takeaways
- Exceeded production guidance in all operating areas with a focus on the Permian’s strong operational performance.
- Achieved $300 million in cost savings this year, with a revised target of $350 million by the end of 2025, two years ahead of schedule.
- Increased fourth-quarter production estimates for Egypt, bolstered by ongoing momentum in the gas program and several high-potential exploration wells planned.
- Maintained a flexible capital allocation strategy to adapt to oil price volatility, aiming to balance production growth with cost efficiency.
- Strong operational execution supports delivery of approximately 120,000 barrels per day in the Permian for 2026, contingent on market conditions.