Results
APA Corporation announces third-quarter 2026
financial and operational results
Third-quarter 2026 highlights
Reported production of approximately 450,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 381,000 BOE per day and exceeded guidance;
Delivered U.S. oil production of 128,000 barrels of oil per day, 4,000 barrels above guidance through high uptime, earlier turn-in-lines and robust new well performance;
Generated $1.38 billion of net cash provided by operating activities, $699 million of free cash flow, and $1.86 billion of adjusted EBITDAX;
Returned $537 million to shareholders including $450 million of share repurchases;
1Repaid $451 million of debt maturities in the third quarter; total debt has declined by $2.8 billion since year-end 2024, lowering annualized interest expense by more than $180 million;
2Reiterated $500 million run-rate cost savings across capital, lease operating expense and G&A by year-end 2026;
3Increased full-year 2026 free cash flow outlook to approximately $2.9 billion, reflecting stronger operating performance and higher commodity prices;
4Lowered net debt target to $2 billion, reinforcing commitment to a strong balance sheet; and
Established preliminary capital budget of $2.5 billion for 2027; exploration capital and GranMorgu development to account for approximately 60% of the year-over-year increase.
HOUSTON, Nov. 4, 2026 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the third quarter of 2026.
APA reported net income attributable to common stock of $698 million, or $2.00 per diluted share.
When adjusted for certain items that impact the comparability of results, APA’s third-quarter earnings totaled $676 million, or $1.94 per diluted share.
APA CORPORATION ANNOUNCES THIRD-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 2 of 6
Third-quarter summary
Third-quarter reported production was 450,000 BOE per day, and adjusted production was 381,000 BOE per day, both exceeding guidance.
U.S. oil production averaged 128,000 barrels per day, 4,000 barrels per day above guidance, reflecting high uptime, earlier turn-in-lines and robust new well performance in the Permian Basin.
5In Egypt, gross production averaged 206,000 BOE per day, relatively flat with the second quarter.
6Gross gas production increased to 542 million cubic feet (MMCF) per day, exceeding guidance through strong well performance and more resilient base production.
Average gas realizations increased to $4.34 per Mcf from $4.23 in the second quarter.
7Adjusted production averaged 64,000 BOE per day, slightly lower than guidance primarily due to production sharing contract impacts associated with higher Brent prices.
Net cash provided by operating activities was $1.38 billion, and adjusted EBITDAX was $1.86 billion.
8Upstream capital investment was $466 million, approximately $30 million below guidance, primarily reflecting timing impacts of GranMorgu capital spending that shifted into the fourth quarter; lease operating expense was $418 million.
Free cash flow totaled $699 million, bringing year-to-date free cash flow to $1.91 billion.
Balance sheet and shareholder returns
APA has repaid $1.2 billion of debt maturities year-to-date, including $451 million in the third quarter.
The company has reduced total debt by $2.8 billion since year-end 2024, lowering annualized interest expense by more than $180 million; these savings are incremental to the company’s controllable spend reduction program.
Net debt was $3.2 billion at the end of the third quarter.
APA returned $537 million to shareholders through dividends and share repurchases during the third quarter.
Through October, the company repurchased an additional 4.5 million shares at an average price of $47.32 per share, bringing total year-to-date repurchases to 17.8 million shares.
Consistent with its established capital returns framework, APA expects to return at least 60% of 2026 free cash flow to shareholders while continuing to strengthen its balance sheet.
At current strip prices APA expects to reach its $3 billion net debt target by year-end.
Building on this progress, the company has updated its net debt target to $2 billion.
Continued debt reduction will lower financing costs and enhance financial flexibility.
CEO commentary
“We are delivering another strong year, with our third-quarter results reflecting the quality of our assets and consistent execution across the business,” said John J. Christmann IV, APA’s CEO.
“Our teams are raising the standard for performance, operating more efficiently, and translating those gains into substantial cash flow.
This quarter alone, we generated nearly $700 million in free cash flow, returned more than $500 million to shareholders and reduced total debt by more than $450 million.”
APA CORPORATION ANNOUNCES THIRD-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 3 of 6
Fourth quarter and full-year outlook
Continued drilling and completion efficiency gains in the Permian are improving capital productivity and supporting an increase in full-year U.S. oil production to 124,000 barrels per day, above the company’s initial guidance of 120,000 to 122,000 barrels per day.
Faster drilling cycle times are also enabling APA to accelerate completion activity into the fourth quarter, increasing 2026 Permian capital investment by $30 million and supporting a smoother production profile entering 2027.
Fourth-quarter U.S. oil production is expected to moderate with the timing of turn-in-lines during the year and seasonal weather impacts.
In Egypt, gross BOE production is expected to increase slightly for the fourth quarter and full year.
Fourth-quarter upstream capital investment is expected to be approximately $525 million reflecting timing shifts in Suriname and increased Permian activity.
Full-year abandonment and decommissioning expenditures are now expected to total $285 million, a $15 million reduction from prior guidance.
Lease operating expense guidance has been increased $25 million to $1,525 million to reflect higher stock-based compensation expense allocated to LOE.
At current strip prices, APA expects to generate approximately $2.9 billion of free cash flow in 2026, an increase of $600 million from its August update.
The stronger free cash flow outlook supports substantial fourth-quarter share repurchases alongside continued debt reduction.
Preliminary 2027 outlook
APA’s preliminary budget for 2027 upstream capital investment is $2.5 billion.
Exploration and GranMorgu development represent approximately 60% of the $400 million year-over-year increase, with the balance reflecting increased Permian activity and expected service cost inflation.
This investment program is expected to result in similar U.S. and Egypt production year-over-year.
CEO closing commentary
“We will enter 2027 well positioned, with a strong core business and significant opportunities ahead.
Our Permian and Egypt assets provide a reliable production and cash flow base, while GranMorgu continues to progress toward first oil in mid-2028.
Our diversified portfolio, strengthened balance sheet, and the capital carry in Suriname provide APA with a distinct financial advantage.
We have the capacity to advance high-impact exploration opportunities, further reduce debt, and deliver substantial shareholder returns,” Christmann concluded.
APA CORPORATION ANNOUNCES THIRD-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 4 of 6
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere.
APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com .
Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities, and free cash flow (non-GAAP financial measures) to GAAP measures and information regarding adjusted production.
APA’s quarterly supplement is available at www.apacorp.com/financialdata .
APA’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information.
It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP.
Adjusted earnings, adjusted EBITDAX, upstream capital investment , net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures.
This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP.
APA CORPORATION ANNOUNCES THIRD-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 5 of 6
These statements include, but are not limited to, statements about future plans, expectations, beliefs, and objectives, including statements about our capital plans and budget, drilling and development plans (including activities in Alaska, Uruguay, and Suriname), production expectations, asset acquisitions (including the pending Savant acquisition and the expected closing thereof and benefits therefrom), debt reduction targets, capital returns (including the target to return at least 60% of free cash flow to shareholders), and tax, interest, and other cost savings.
See “Risk Factors” in APA’s Form 10-K for the year ended Dec. 31, 2025, and in our quarterly reports on Form 10-Q for a discussion of risk factors that affect our business.
Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
APA CORPORATION ANNOUNCES THIRD-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 6 of 6
Cautionary note to investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms.
APA may use certain terms in this news release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC.
Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon.
Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025, available from APA at www.apacorp.com or by writing APA at: 2000 W Sam Houston Pkwy S, Suite 200, Houston, TX 77042 (Attn: Corporate Secretary).
You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov .
Contacts
Website: www.apacorp.com
APA-F
APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below:
(2) Egypt Gross Production:
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APA CORPORATION
ADJUSTED PRODUCTION INFORMATION
Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented.
Adjusted production excludes production attributable to 1) noncontrolling interest in Egypt and 2) Egypt tax barrels.
Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.
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APA CORPORATION
PRICE INFORMATION
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APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
Reconciliation of Costs incurred to Upstream capital investment
Management believes the presentation of upstream capital investments is useful for investors to assess APA’s expenditures related to our upstream capital activity.
We define capital investments as costs incurred for oil and gas activities, adjusted to exclude property and leasehold acquisitions, asset retirement additions and revisions, capitalized interest, and certain exploration expenses.
Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded.
Management believes this provides a more accurate reflection of APA’s cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.
Reconciliation of Net cash provided by operating activities to Cash flows from operations before changes in operating assets and liabilities and Free cash flow
Cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP financial measures.
APA uses these measures internally and provides this information because management believes it is useful in evaluating the company’s ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt, as well as to compare our results from period to period.
We believe these measures are also used by research analysts and investors to value and compare oil and gas exploration and production companies and are frequently included in published research reports when providing investment recommendations.
Cash flows from operations before changes in operating assets and liabilities and free cash flow are additional measures of liquidity but are not measures of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.
Additionally, this presentation of free cash flow may not be comparable to similar measures presented by other companies in our industry.
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APA CORPORATION
NON-GAAP FINANCIAL MEASURES
Reconciliation of Net cash provided by operating activities to Adjusted EBITDAX
Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders.
We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation.
Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’s on-going operations.
Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis.
However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.
Reconciliation of debt to net debt
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