APA Corporation announces third-quarter 2026 financial and operational results
APA Corp (APA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE 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
How this was made
The 30-second read
Why it matters
The company beat production guidance, generated $1.38B operating cash, and lifted its free‑cash‑flow outlook, which may attract investors seeking exposure to profitable upstream assets.
Market read
APA's strong quarterly performance and upgraded guidance provide a clear catalyst for short‑term price movement and may influence sentiment toward the broader oil sector.
What to watch
Potential production sharing contract impacts and higher Brent prices could pressure future margins.
APA Corporation announces third-quarter 2026 financial and operational results
APA reported higher net income, adjusted earnings, free cash flow and adjusted EBITDAX versus the prior-year quarter, while adjusted production exceeded guidance. The company increased its full-year free cash flow outlook to approximately $2.9 billion, repaid debt and returned $537 million to shareholders.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, third quarter 2026GAAP | $2.77B | – | – |
| Oil, natural gas, and natural gas liquids production revenues, third quarter 2026GAAP | $2.36B | – | – |
| Oil revenues, third quarter 2026GAAP | $1.93B | – | – |
| Natural gas revenues, third quarter 2026GAAP | $236M | – | – |
| Natural gas liquids revenues, third quarter 2026GAAP | $190M | – | – |
| Purchased oil and gas sales, third quarter 2026GAAP | $409M | – | – |
| Derivative instrument gains (losses), net, third quarter 2026GAAP | $30M | – | – |
| Lease operating expenses, third quarter 2026GAAP | $418M | – | – |
| General and administrative expense, third quarter 2026GAAP | $112M | – | – |
| Exploration expense, third quarter 2026GAAP | $51M | – | – |
| Depreciation, depletion, and amortization, oil and gas property and equipment, third quarter 2026GAAP | $549M | – | – |
| Financing costs, net, third quarter 2026GAAP | $35M | – | – |
| Net income before income taxes, third quarter 2026GAAP | $1.2B | – | – |
| Net income including noncontrolling interests, third quarter 2026GAAP | $794M | – | – |
| Net income attributable to common stock, third quarter 2026GAAP | $698M | – | – |
| Diluted net income per common share, third quarter 2026GAAP | $ 2.00 | – | – |
| Basic net income per common share, third quarter 2026GAAP | $ 2.01 | – | – |
| Adjusted earnings, third quarter 2026non-GAAP | $676M | – | – |
| Adjusted diluted earnings per share, third quarter 2026non-GAAP | $ 1.94 | – | – |
| Net cash provided by operating activities, third quarter 2026GAAP | $1.38B | – | – |
| Cash flows from operations before changes in operating assets and liabilities, third quarter 2026non-GAAP | $1.45B | – | – |
| Free cash flow, third quarter 2026non-GAAP | $699M | – | – |
| Adjusted EBITDAX, third quarter 2026non-GAAP | $1.86B | – | – |
| Upstream capital investment, third quarter 2026non-GAAP | $466M | – | – |
| Total production, third quarter 2026other | 450,276 BOE per day | 10% | (3)% |
| Adjusted production, third quarter 2026other | 380,568 BOE per day | 10% | (2)% |
| United States production, third quarter 2026other | 294,268 BOE per day | 12% | 5% |
| Egypt production, third quarter 2026other | 133,610 BOE per day | 7% | (12)% |
| North Sea production, third quarter 2026other | 22,398 BOE per day | 1% | (27)% |
| United States oil volume, third quarter 2026other | 128,371 Barrels per day | 4% | 6% |
| Egypt gross production, third quarter 2026other | 206,395 BOE per day | – | – |
| Egypt gross gas production, third quarter 2026other | 541,812 Mcf per day | – | – |
| Average total oil price per barrel, third quarter 2026other | $ 92.02 | – | – |
| Average total natural gas price per Mcf, third quarter 2026other | $ 2.87 | – | – |
| Average total NGL price per barrel, third quarter 2026other | $ 26.17 | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $7.47B | – | – |
| Net income attributable to common stock, nine months ended September 30, 2026GAAP | $1.89B | – | – |
| Diluted net income per common share, nine months ended September 30, 2026GAAP | $ 5.36 | – | – |
| Adjusted earnings, nine months ended September 30, 2026non-GAAP | $1.83B | – | – |
| Adjusted diluted earnings per share, nine months ended September 30, 2026non-GAAP | $ 5.20 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $3.64B | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $1.91B | – | – |
| Adjusted EBITDAX, nine months ended September 30, 2026non-GAAP | $5.26B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter and full-year 2026; preliminary 2027 outlook outlook
- NoteFull-year U.S. oil production: 124,000 barrels per day.
- NoteFourth-quarter upstream capital investment: approximately $525 million.
- NoteFull-year abandonment and decommissioning expenditures: $285 million.
- NoteLease operating expense guidance: $1,525 million.
- NoteAt current strip prices, 2026 free cash flow: approximately $2.9 billion.
- NoteAPA expects to return at least 60% of 2026 free cash flow to shareholders.
- NoteAPA expects to reach its $3 billion net debt target by year-end at current strip prices; updated net debt target: $2 billion.
- NotePreliminary 2027 upstream capital investment: $2.5 billion.
- NoteExploration and GranMorgu development represent approximately 60% of the $400 million year-over-year increase in the 2027 budget.
- NoteThe 2027 investment program is expected to result in similar U.S. and Egypt production year-over-year.
- NoteGranMorgu continues to progress toward first oil in mid-2028.
Capital returns
- APA returned $537 million to shareholders through dividends and share repurchases during the third quarter.
- Treasury stock activity, net: $ (450) (In millions) in the third quarter and $ (550) (In millions) for the nine months ended September 30, 2026.
- Dividends paid to APA common stockholders: $ (87) (In millions) in the third quarter and $ (264) (In millions) for the nine months ended September 30, 2026.
- Dividends declared per common share: $ 0.25 for the third quarter and $ 0.75 for the nine months ended September 30, 2026.
- 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.
What drove it
- U.S. oil production was 4,000 barrels per day above guidance through high uptime, earlier turn-in-lines and robust new well performance in the Permian Basin.
- Egypt gross gas production exceeded guidance through strong well performance and more resilient base production.
- Average Egypt gas realizations increased to $4.34 per Mcf from $4.23 in the second quarter.
- Upstream capital investment was approximately $30 million below guidance, primarily reflecting GranMorgu capital spending that shifted into the fourth quarter.
- The full-year free cash flow outlook increase reflects stronger operating performance and higher commodity prices.
Concerns
- Adjusted production averaged 64,000 BOE per day in Egypt and was slightly lower than guidance, primarily due to production sharing contract impacts associated with higher Brent prices.
- Egypt production was 133,610 BOE per day, with a printed year-over-year change of (12)%.
- North Sea production was 22,398 BOE per day, with a printed year-over-year change of (27)%.
- Fourth-quarter U.S. oil production is expected to moderate due to the timing of turn-in-lines during the year and seasonal weather impacts.
- Lease operating expense guidance was increased $25 million to $1,525 million to reflect higher stock-based compensation expense allocated to LOE.
- Exploration expense was $ 51 (In millions), compared with $ 22 (In millions) in the prior-year quarter.
What to watch
- Fourth-quarter upstream capital investment is expected to be approximately $525 million as Suriname timing shifts and increased Permian activity affect spending.
- The scale of fourth-quarter share repurchases alongside continued debt reduction.
- Progress toward the updated $2 billion net debt target.
- Execution of the preliminary $2.5 billion 2027 upstream capital investment budget and the expected similar U.S. and Egypt production year-over-year.
- GranMorgu development progress toward first oil in mid-2028.
Balance sheet and cash flow
- Cash and cash equivalents were $ 75 (In millions) at September 30, 2026, compared with $ 516 (In millions) at December 31, 2025.
- Total debt was $ 3,295 (In millions) at September 30, 2026, compared with $ 4,493 (In millions) at December 31, 2025.
- Net Debt was $ 3,220 (In millions) at September 30, 2026, compared with $ 3,977 (In millions) at December 31, 2025.
- Payments on fixed-rate debt were $ (446) (In millions) in the third quarter and $ (1,200) (In millions) for the nine months ended September 30, 2026.
- Net cash used in investing activities was $ (669) (In millions) in the third quarter and $ (1,802) (In millions) for the nine months ended September 30, 2026.
- Net cash used in financing activities was $ (1,076) (In millions) in the third quarter and $ (2,275) (In millions) for the nine months ended September 30, 2026.
- Total assets were $ 17,883 (In millions) at September 30, 2026; APA shareholders’ equity was $ 7,186 (In millions).
Analysis
APA delivered a stronger third quarter on reported earnings and cash generation. Total revenues were $ 2,769 (In millions), compared with $ 2,115 (In millions) in the prior-year quarter. Net income attributable to common stock was $ 698 (In millions), or $ 2.00 per diluted share, versus $ 205 (In millions), or $ 0.57 per diluted share. Adjusted earnings were $ 676 (In millions), or $ 1.94 per diluted share, compared with $ 332 (In millions), or $ 0.93 per diluted share.
Operating execution was strongest in the U.S. Total production was 450,276 BOE per day and adjusted production was 380,568 BOE per day, both described as exceeding guidance. U.S. production was 294,268 BOE per day and U.S. oil volume was 128,371 Barrels per day, with printed sequential changes of 12% and 4%, respectively. Egypt gross gas production was 541,812 Mcf per day, while Egypt production and North Sea production carried printed year-over-year declines of (12)% and (27)%, respectively.
Cash flow remained substantial despite lower operating cash flow than the prior-year quarter. Net cash provided by operating activities was $ 1,376 (In millions), compared with $ 1,460 (In millions), while free cash flow was $ 699 (In millions), compared with $ 339 (In millions). Adjusted EBITDAX was $ 1,857 (In millions), versus $ 1,345 (In millions). Upstream capital investment was $ 466 (In millions), below the $ 542 (In millions) reported in the prior-year quarter, as GranMorgu spending timing shifted into the fourth quarter.
Capital allocation combined shareholder distributions with debt reduction. APA returned $537 million to shareholders, including $450 million of share repurchases, and repaid $451 million of debt maturities during the quarter. Net Debt was $ 3,220 (In millions) at September 30, 2026, versus $ 3,977 (In millions) at December 31, 2025. The company updated its net debt target to $2 billion and expects to return at least 60% of 2026 free cash flow to shareholders.
The outlook was raised on cash flow and U.S. oil production. APA now expects full-year U.S. oil production of 124,000 barrels per day and approximately $2.9 billion of 2026 free cash flow at current strip prices. The fourth quarter carries higher expected upstream capital investment of approximately $525 million, while the preliminary 2027 upstream capital budget is $2.5 billion. Management expects fourth-quarter U.S. oil production to moderate and has raised lease operating expense guidance to $1,525 million.
Management, verbatim
We are delivering another strong year, with our third-quarter results reflecting the quality of our assets and consistent execution across the business.
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.
John J. Christmann IV, APA’s CEO
We will enter 2027 well positioned, with a strong core business and significant opportunities ahead.
John J. Christmann IV, APA’s CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- No geographic revenue segments were reported.
- No fourth-quarter or full-year revenue guidance was reported.
- No gross-margin guidance was reported.
- No tax-rate guidance was reported.
- No prior outlook section was provided for a formal actual-versus-prior-guidance comparison.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
APA filed a Form 8‑K announcing its Q3 2026 results, including production numbers, cash flow, debt reduction and guidance updates.
Ticker impact
APA reported Q3 2026 production and cash flow exceeding guidance, raised full-year free cash flow outlook to $2.9B and lowered net‑debt target to $2B.
likely upward pressure as the market prices in higher free‑cash‑flow expectations and debt reduction.
The earnings beat, higher free‑cash‑flow outlook and debt‑paydown plan are fresh, material facts that can drive buying interest.
Market effects
Energy sector may see modest upside as APA's results highlight strong oil production and cash generation.
U.S. oil producers could benefit from comparable performance cues.
Limited; primarily impacts APA and peers in the upstream oil space.
Counterpoint
If oil prices soften, the raised guidance may be overstated, risking a pull‑back.
Key entities
- companyAPA Corporation
U.S. upstream oil and gas producer reporting Q3 2026 results.
