$APA earnings report

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.

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.