$APA earnings report

APA’s filing is a pre-results supplemental update for the third quarter of 2026, not a finalized earnings release. It provides management estimates that may affect quarterly results and states that actual results may vary materially as the company completes quarter-end closing and financial reporting procedures. Consequently, the document does not report total revenue, earnings, cash flow, balance-sheet figures, or GAAP and non-GAAP profitability.

The operating update centers on estimated realized commodity prices. Estimated United States prices were $87.50 for oil, $26.00 for NGL and $1.45 for natural gas, while estimated International prices were $98.50 for oil, $155.00* for NGL and $5.00 for natural gas. APA said the increase in International NGL pricing compared with prior quarters primarily reflects low volumes and the timing of revenue recognition, making that estimate a mix and timing item rather than a stated broad-based operating improvement.

The preliminary cost and other-income items include $25 million of dry hole costs before tax and a $190 million net gain on oil and gas purchases and sales before tax. The stated net gain includes an $8 million realized gain from commodity derivatives. General and administrative expenses totaled approximately $115 million, including $56 million of stock-based compensation, most of which APA attributed to mark-to-market impacts from its share price during the quarter.

Capital allocation included the repurchase of 10.5 million shares at an average price of $42.78 per share during the third quarter. APA estimates weighted-average basic common shares of 348 million for the quarter. Investors will need the subsequent finalized results release and conference call to assess how the cited realized prices, costs, gains, tax barrels and repurchases translate into revenue, earnings, cash flow and returns.

APA reported $747 million of net income attributable to common stock, or $2.11 per diluted share, and $669 million of adjusted earnings, or $1.89 per diluted share. Operational delivery was above management's guidance: reported production was 410,000 BOE per day, adjusted production was 347,000 BOE per day, and U.S. oil production was 123,500 barrels of oil per day, 2,500 barrels of oil per day above guidance. Egypt adjusted production was 61,000 BOE per day and in line with guidance.

Cash generation was substantial in the reported period. Net cash provided by operating activities was $1.7 billion, adjusted EBITDAX was $1.8 billion, and free cash flow was $738 million. Free cash flow generation reached $1.2 billion for the first half of the year. Upstream capital investment of $546 million and lease operating expense of $353 million were both below guidance, consistent with management's emphasis on improved capital efficiency and lower costs.

Balance-sheet activity continued to be a central use of cash. APA repaid $752 million of near-term bond debt in the first half, including $673 million in the second quarter. The company stated that total debt has declined by $2.3 billion since year-end 2024 and that annualized interest expense has fallen by more than $155 million. Net debt was $3.3 billion at the end of the second quarter. APA also returned $189 million to shareholders through dividends and repurchases, including 2.8 million shares repurchased at an average price of $35.26 per share.

The outlook update combines stronger U.S. oil expectations with capital discipline. APA raised full-year U.S. oil production guidance to 123,000 barrels of oil per day while maintaining U.S. capital at $1.3 billion. It expects total company upstream capital investment of $2.07 billion and lowered lease operating expense guidance by $25 million to $1.5 billion. Management also increased expected 2026 exit run-rate savings to approximately $500 million from the prior $450 million target.

The company is pairing base-business execution with exploration portfolio activity. The pending Savant Alaska acquisition has $70 million of upfront consideration prior to customary closing adjustments, plus contingent payments, and is expected to close by year-end 2026. In Uruguay, APA will retain a 60% working interest in offshore Block 6 under its agreement with Eni S.p.A, with Eni funding most of the initial exploration well planned for 2027. The filing provides no reported revenue, commodity-price realization, margin, or total-debt figure, limiting direct assessment of financial mix and leverage beyond the stated net-debt and debt-reduction disclosures.