APA Corporation (Nasdaq: APA) boosts Q1 2026 earnings and free cash flow
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
APA Corporation reported stronger first-quarter 2026 results with higher profit and solid cash generation. Net income attributable to common stock was $446 million, or $1.26 per diluted share, compared with $347 million or $0.96 a year earlier. Adjusted earnings were $489 million, or $1.38 per diluted share.
Total reported production averaged 442,000 BOE per day, while adjusted production was 363,000 BOE per day. U.S. oil production averaged 124,000 barrels per day, above prior guidance, supported by efficiency gains and improved uptime in the Permian Basin.
APA generated $554 million of net cash provided by operating activities, $477 million of free cash flow, and $1.6 billion of adjusted EBITDAX. The company repaid $634 million of near-term bond maturities through April 2026 and expects more than $60 million lower interest expense in 2026, while returning $88 million to shareholders via dividends and reaffirming its capital guidance.
Positive
- None.
Negative
- None.
Insights
APA delivered higher earnings and strong cash flow while holding capital discipline.
APA’s net income attributable to common stock rose to $446 million, with adjusted earnings of $489 million and adjusted EBITDAX of $1.6 billion. Free cash flow reached $477 million, showing the business is generating substantial cash after capital spending.
Reported production averaged 442,000 BOE per day, with adjusted production at 363,000 BOE per day and U.S. oil at 124,000 barrels per day, above earlier guidance. Upstream capital investment and lease operating expense came in below guidance, aligning profitability with spending control.
On the balance sheet, APA repaid $634 million of near-term bond maturities through April 2026, contributing to an expected reduction of more than $60 million in 2026 interest expense. For 2026, it raised its U.S. oil outlook to 122,000 barrels per day and kept upstream capital at about $2.1 billion, suggesting continued focus on free cash flow and deleveraging.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenues Q1 2026: $2,327 million
Net income attributable to common stock: $446 million
Diluted EPS: $1.26 per share
+5 more
8 metrics
Total revenues Q1 2026
$2,327 million
Oil, gas and NGL plus purchased sales for quarter ended March 31, 2026
Net income attributable to common stock
$446 million
Quarter ended March 31, 2026
Diluted EPS
$1.26 per share
Net income attributable to common stock, Q1 2026
Adjusted EBITDAX
$1,562 million
Quarter ended March 31, 2026
Free cash flow
$477 million
Quarter ended March 31, 2026, non-GAAP
Reported production
442,352 BOE per day
Company total, quarter ended March 31, 2026
U.S. oil production
123,898 barrels per day
Quarter ended March 31, 2026
Net debt
$4,121 million
As of March 31, 2026
Key Terms
adjusted EBITDAX, free cash flow, noncontrolling interest, production sharing contract (PSC), +2 more
6 terms
adjusted EBITDAX financial
"Adjusted EBITDAX was $1.6 billion, and free cash flow totaled $477 million."
Adjusted EBITDAX is a measure of a company’s operating profit that adds back interest, taxes, depreciation, amortization and specific recurring costs (often exploration or similar project expenses), then removes one‑time or unusual items to show recurring cash profitability. Investors use it like a clean yardstick—ignoring financing choices, accounting rules and one‑off events—to compare core performance across periods or peers and assess a business’s ability to generate cash from operations.
free cash flow financial
"Generated $554 million net cash provided by operating activities, $477 million of free cash flow, and $1.6 billion of adjusted EBITDAX;"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
noncontrolling interest financial
"Adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 363,000 BOE per day;"
The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.
production sharing contract (PSC) financial
"In Egypt, adjusted production averaged 71,000 BOE per day, reflecting production sharing contract (PSC) impacts associated with higher oil prices."
upstream capital investment financial
"Upstream capital investment and lease operating expense (LOE) were below guidance."
Net debt financial
"Net Debt | $ | 4,121 | | | $ | 3,977 |"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Earnings Snapshot
Total revenues: $2,327 million · Guidance included
Q1 2026
Total revenues
$2,327 million
Net income attributable to common stock
$446 million
Diluted EPS
$1.26
Adjusted earnings
$489 million
Adjusted EBITDAX
$1,562 million
Free cash flow
$477 million
Guidance
For 2026, APA raised its U.S. oil production outlook to 122,000 barrels per day, reaffirmed Egypt gross gas guidance of 540–550 MMCF per day, and maintained upstream capital investment guidance at approximately $2.1 billion and lease operating expense guidance at approximately $1.5 billion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (713 ) 296-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Trading | Name of each exchange | ||||||||||||||||
Title of each class | Symbol(s) | on which registered | |||||||||||||||
| Nasdaq Texas, LLC | |||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, APA Corporation issued a press release announcing financial and operating results for the fiscal quarter ended March 31, 2026. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description | ||||||||||
| 99.1 | Press Release of APA Corporation dated May 6, 2026. | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
APA CORPORATION
| Date: | May 6, 2026 | By: | /s/ Robert P. Rayphole | ||||||||
| Robert P. Rayphole | |||||||||||
| Vice President, Chief Accounting Officer, and Controller | |||||||||||
| (Principal Accounting Officer) | |||||||||||
Exhibit 99.1
NEWS RELEASE
APA Corporation Announces First-Quarter 2026
Financial and Operational Results
First-quarter 2026 and recent highlights
•Reported production of 442,000 barrels of oil equivalent (BOE) per day in the first quarter; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 363,000 BOE per day;
•Delivered U.S. oil production of 124,000 barrels per day, driven by continued Permian efficiency gains and improved uptime; raised full-year U.S. oil production outlook to 122,000 barrels per day, Permian capital spending unchanged at $1.3 billion;
•Generated $554 million net cash provided by operating activities, $477 million of free cash flow, and $1.6 billion of adjusted EBITDAX;
•Continued progress on cost reduction initiatives, maintaining trajectory toward $450 million cumulative run-rate savings by year-end 2026; and
•Repaid $634 million in near-term bond maturities through April 2026; combined with prior deleveraging actions, interest expense expected to be more than $60 million lower in 2026
HOUSTON, May 6, 2026 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the first quarter of 2026. APA reported net income attributable to common stock of $446 million, or $1.26 per share on a fully diluted basis. When adjusted for certain items that impact the comparability of results, APA’s first-quarter earnings totaled $489 million, or $1.38 per diluted share.
First-quarter summary
First-quarter reported production was 442,000 BOE per day and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 363,000 BOE per day. U.S. oil production averaged 124,000 barrels per day, exceeding guidance set in February from continued efficiency gains and improved uptime in the Permian Basin. In Egypt, adjusted production averaged 71,000 BOE per day, reflecting production sharing contract (PSC) impacts associated with higher oil prices. Underlying gross oil production benefited from strong well performance. Gross gas production averaged 518 million cubic feet (MMCF) per day, in-line with guidance.
Upstream capital investment and lease operating expense (LOE) were below guidance. Adjusted EBITDAX was $1.6 billion, and free cash flow totaled $477 million.
1
APA CORPORATION ANNOUNCES FIRST-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 2 of 4
Debt management and shareholder return
Through April 2026, APA repaid $634 million in near-term bond maturities. Combined with deleveraging actions in 2025, this is expected to reduce annual interest expense by more than $60 million in 2026. In addition, APA returned $88 million to shareholders through dividends in the first quarter. The company remains committed to its capital returns framework.
CEO commentary
“Our first-quarter results reflect consistent execution across the portfolio,” said John J. Christmann IV, APA’s chief executive officer. “We delivered strong operational performance, exceeded U.S. oil production guidance, and generated significant free cash flow while maintaining capital discipline. At the same time, we continue to structurally lower our cost base, strengthen the balance sheet, and advance our high-quality portfolio of development and exploration opportunities.”
Second-quarter and full-year update
For the second quarter, APA expects U.S. oil production of 121,000 barrels per day. In Egypt, gross gas production is expected to increase to 540 MMCF per day, supported by ongoing success in the gas-focused drilling program. Upstream capital investment is projected to be approximately $575 million.
For the full-year 2026, the company is raising its U.S. oil production outlook to 122,000 barrels per day, reflecting strong uptime and continued efficiency gains in the Permian Basin. The company also reaffirms its prior guidance range of 540 – 550 MMCF per day for Egypt gross gas production. APA’s upstream capital investment and LOE guidance both remain unchanged at approximately $2.1 billion and $1.5 billion, respectively.
Conference call
APA will host a conference call to discuss its first-quarter 2026 results at 10 a.m. Central time, Thursday, May 7. The conference call will be webcast from APA’s website at www.apacorp.com and investor.apacorp.com. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.
APA CORPORATION ANNOUNCES FIRST-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 3 of 4
About APA
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
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 http://www.apacorp.com/financialdata.
Non-GAAP financial measures
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. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.
Forward-looking statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “upside,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, monetizations, and interest and other cost savings. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2025, and in our quarterly reports on Form 10-Q for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. 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 and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
APA CORPORATION ANNOUNCES FIRST-QUARTER 2026
FINANCIAL AND OPERATIONAL RESULTS — PAGE 4 of 4
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
Investor: (281) 302-2286 | ir@apachecorp.com
Media: (713) 296-7276 | media@apachecorp.com
Website: www.apacorp.com
APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
(In millions, except per share data)
| For the Quarter Ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
REVENUES AND OTHER: | ||||||||||||||
| Oil, natural gas, and natural gas liquids production revenues | ||||||||||||||
| Oil revenues | $ | 1,644 | $ | 1,600 | ||||||||||
| Natural gas revenues | 157 | 233 | ||||||||||||
| Natural gas liquids revenues | 141 | 206 | ||||||||||||
| 1,942 | 2,039 | |||||||||||||
| Purchased oil and gas sales | 385 | 597 | ||||||||||||
| Total revenues | 2,327 | 2,636 | ||||||||||||
| Derivative instrument losses, net | (113) | (28) | ||||||||||||
| Loss on divestitures, net | — | (2) | ||||||||||||
| Other, net | 1 | 6 | ||||||||||||
| 2,215 | 2,612 | |||||||||||||
| OPERATING EXPENSES: | ||||||||||||||
| Lease operating expenses | 362 | 407 | ||||||||||||
| Gathering, processing, and transmission | 91 | 104 | ||||||||||||
| Purchased oil and gas costs | 75 | 474 | ||||||||||||
| Taxes other than income | 57 | 74 | ||||||||||||
| Exploration | 26 | 30 | ||||||||||||
| General and administrative | 115 | 98 | ||||||||||||
| Transaction, reorganization, and separation | 7 | 37 | ||||||||||||
| Depreciation, depletion, and amortization: | ||||||||||||||
| Oil and gas property and equipment | 546 | 636 | ||||||||||||
| Other assets | 7 | 7 | ||||||||||||
| Asset retirement obligation accretion | 42 | 39 | ||||||||||||
| Financing costs, net | 57 | (57) | ||||||||||||
| 1,385 | 1,849 | |||||||||||||
| NET INCOME BEFORE INCOME TAXES | 830 | 763 | ||||||||||||
| Current income tax provision | 302 | 306 | ||||||||||||
| Deferred income tax provision (benefit) | (15) | 39 | ||||||||||||
| NET INCOME INCLUDING NONCONTROLLING INTERESTS | 543 | 418 | ||||||||||||
| Net income attributable to noncontrolling interest | 97 | 71 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 446 | $ | 347 | ||||||||||
| NET INCOME PER COMMON SHARE: | ||||||||||||||
| Basic | $ | 1.26 | $ | 0.96 | ||||||||||
| Diluted | $ | 1.26 | $ | 0.96 | ||||||||||
| WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||
| Basic | 354 | 364 | ||||||||||||
| Diluted | 354 | 364 | ||||||||||||
| DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.25 | $ | 0.25 | ||||||||||
Page 1
APA CORPORATION
PRODUCTION INFORMATION
| For the Quarter Ended | % Change | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | 1Q26 to 4Q25 | 1Q26 to 1Q25 | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||||||||
OIL VOLUME - Barrels per day | |||||||||||||||||||||||||||||
| United States | 123,898 | 132,001 | 125,124 | (6)% | (1)% | ||||||||||||||||||||||||
Egypt (1,2) | 86,736 | 88,952 | 86,173 | (2)% | 1% | ||||||||||||||||||||||||
| North Sea | 21,336 | 22,744 | 25,206 | (6)% | (15)% | ||||||||||||||||||||||||
Total (1) | 231,970 | 243,697 | 236,503 | (5)% | (2)% | ||||||||||||||||||||||||
| NATURAL GAS VOLUME - Mcf per day | |||||||||||||||||||||||||||||
| United States | 413,975 | 442,086 | 574,736 | (6)% | (28)% | ||||||||||||||||||||||||
Egypt (1, 2) | 381,406 | 365,216 | 317,209 | 4% | 20% | ||||||||||||||||||||||||
| North Sea | 29,045 | 29,763 | 31,606 | (2)% | (8)% | ||||||||||||||||||||||||
Total (1) | 824,426 | 837,065 | 923,551 | (2)% | (11)% | ||||||||||||||||||||||||
| NGL VOLUME - Barrels per day | |||||||||||||||||||||||||||||
| United States | 71,826 | 75,370 | 77,405 | (5)% | (7)% | ||||||||||||||||||||||||
| North Sea | 1,151 | 1,190 | 1,144 | (3)% | 1% | ||||||||||||||||||||||||
Total (1) | 72,977 | 76,560 | 78,549 | (5)% | (7)% | ||||||||||||||||||||||||
| BOE per day | |||||||||||||||||||||||||||||
| United States | 264,720 | 281,051 | 298,319 | (6)% | (11)% | ||||||||||||||||||||||||
Egypt (1, 2) | 150,304 | 149,821 | 139,041 | —% | 8% | ||||||||||||||||||||||||
| North Sea | 27,328 | 28,895 | 31,618 | (5)% | (14)% | ||||||||||||||||||||||||
Total (1) | 442,352 | 459,767 | 468,978 | (4)% | (6)% | ||||||||||||||||||||||||
| Total excluding noncontrolling interests | 392,235 | 409,772 | 422,595 | (4)% | (7)% | ||||||||||||||||||||||||
(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below:
| Oil (b/d) | 28,921 | 29,683 | 28,746 | ||||||||||||||||||||||||||
| Gas (Mcf/d) | 127,175 | 121,872 | 105,820 | ||||||||||||||||||||||||||
| BOE per day | 50,117 | 49,995 | 46,383 | ||||||||||||||||||||||||||
(2) Egypt Gross Production:
| Oil (b/d) | 121,472 | 125,262 | 128,025 | ||||||||||||||||||||||||||
| Gas (Mcf/d) | 517,623 | 500,593 | 456,955 | ||||||||||||||||||||||||||
| BOE per day | 207,743 | 208,694 | 204,184 | ||||||||||||||||||||||||||
Page 2
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.
| For the Quarter Ended | % Change | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | 1Q26 to 4Q25 | 1Q26 to 1Q25 | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||||||||
OIL VOLUME - Barrels per day | |||||||||||||||||||||||||||||
| United States | 123,898 | 132,001 | 125,124 | (6)% | (1)% | ||||||||||||||||||||||||
| Egypt | 41,253 | 45,863 | 42,521 | (10)% | (3)% | ||||||||||||||||||||||||
| North Sea | 21,336 | 22,744 | 25,206 | (6)% | (15)% | ||||||||||||||||||||||||
| Total | 186,487 | 200,608 | 192,851 | (7)% | (3)% | ||||||||||||||||||||||||
| NATURAL GAS VOLUME - Mcf per day | |||||||||||||||||||||||||||||
| United States | 413,975 | 442,086 | 574,736 | (6)% | (28)% | ||||||||||||||||||||||||
| Egypt | 180,854 | 187,859 | 155,555 | (4)% | 16% | ||||||||||||||||||||||||
| North Sea | 29,045 | 29,763 | 31,606 | (2)% | (8)% | ||||||||||||||||||||||||
| Total | 623,874 | 659,708 | 761,897 | (5)% | (18)% | ||||||||||||||||||||||||
| NGL VOLUME - Barrels per day | |||||||||||||||||||||||||||||
| United States | 71,826 | 75,370 | 77,405 | (5)% | (7)% | ||||||||||||||||||||||||
| North Sea | 1,151 | 1,190 | 1,144 | (3)% | 1% | ||||||||||||||||||||||||
| Total | 72,977 | 76,560 | 78,549 | (5)% | (7)% | ||||||||||||||||||||||||
| BOE per day | |||||||||||||||||||||||||||||
| United States | 264,720 | 281,051 | 298,319 | (6)% | (11)% | ||||||||||||||||||||||||
| Egypt | 71,395 | 77,173 | 68,447 | (7)% | 4% | ||||||||||||||||||||||||
| North Sea | 27,328 | 28,895 | 31,618 | (5)% | (14)% | ||||||||||||||||||||||||
| Total | 363,443 | 387,119 | 398,384 | (6)% | (9)% | ||||||||||||||||||||||||
Page 3
APA CORPORATION
PRICE INFORMATION
| For the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||
AVERAGE OIL PRICE PER BARREL | ||||||||||||||||||||
| United States | $ | 72.53 | $ | 59.97 | $ | 72.45 | ||||||||||||||
| Egypt | 86.01 | 62.11 | 75.06 | |||||||||||||||||
| North Sea | 84.67 | 63.18 | 75.30 | |||||||||||||||||
| Total | 78.69 | 61.03 | 73.73 | |||||||||||||||||
| AVERAGE NATURAL GAS PRICE PER MCF | ||||||||||||||||||||
| United States | $ | (0.32) | $ | 0.15 | $ | 2.00 | ||||||||||||||
| Egypt | 4.01 | 3.89 | 3.19 | |||||||||||||||||
| North Sea | 14.19 | 10.26 | 14.96 | |||||||||||||||||
| Total | 2.12 | 2.10 | 2.81 | |||||||||||||||||
| AVERAGE NGL PRICE PER BARREL | ||||||||||||||||||||
| United States | $ | 19.89 | $ | 20.43 | $ | 28.12 | ||||||||||||||
| North Sea | 49.24 | 40.64 | 51.39 | |||||||||||||||||
| Total | 20.96 | 20.95 | 28.75 | |||||||||||||||||
Page 4
APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In millions)
| SUMMARY EXPLORATION EXPENSE INFORMATION | |||||||||||
| For the Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Unproved leasehold impairments | $ | 1 | $ | — | |||||||
| Dry hole expense | 11 | 11 | |||||||||
| Geological and geophysical expense | 2 | 4 | |||||||||
| Exploration overhead and other | 12 | 15 | |||||||||
| $ | 26 | $ | 30 | ||||||||
| SUMMARY STOCK-SETTLED AND CASH-SETTLED EQUITY COMPENSATION INFORMATION | |||||||||||||||||
| For the Quarter Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Stock-settled and cash-settled compensation expensed: | |||||||||||||||||
| Lease operating expenses | $ | 14 | $ | 5 | $ | 7 | |||||||||||
| Exploration | 9 | 1 | 1 | ||||||||||||||
| General and administrative | 47 | 12 | 17 | ||||||||||||||
| Total stock-settled and cash-settled compensation expensed | 70 | 18 | 25 | ||||||||||||||
| Stock-settled and cash-settled compensation capitalized | 12 | 3 | 4 | ||||||||||||||
| Stock-settled and cash-settled compensation associated with abandonment and decommissioning | 2 | — | — | ||||||||||||||
| Total stock-settled and cash-settled compensation costs | $ | 84 | $ | 21 | $ | 29 | |||||||||||
Page 5
APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In millions)
| SUMMARY CASH FLOW INFORMATION | |||||||||||
| For the Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 554 | $ | 1,096 | |||||||
| Additions to upstream oil and gas property | (542) | (777) | |||||||||
| Leasehold and property acquisitions | (4) | (13) | |||||||||
| Other, net | 4 | 4 | |||||||||
| Net cash used in investing activities | $ | (542) | $ | (786) | |||||||
| Proceeds from commercial paper and revolving credit facilities, net | — | 433 | |||||||||
| Payments on term loan facility | — | (900) | |||||||||
| Fixed-rate debt borrowings | — | 846 | |||||||||
| Payments on fixed-rate debt | (79) | (905) | |||||||||
| Distributions to noncontrolling interest | (65) | (126) | |||||||||
| Treasury stock activity, net | — | (100) | |||||||||
| Dividends paid to APA common stockholders | (88) | (91) | |||||||||
| Other, net | (3) | (25) | |||||||||
| Net cash used in financing activities | $ | (235) | $ | (868) | |||||||
| SUMMARY BALANCE SHEET INFORMATION | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash and cash equivalents | $ | 293 | $ | 516 | |||||||
| Other current assets | 1,996 | 1,605 | |||||||||
| Property and equipment, net | 12,824 | 12,748 | |||||||||
| Decommissioning security for sold Gulf of America properties | 21 | 21 | |||||||||
| Other assets | 2,945 | 2,871 | |||||||||
| Total assets | $ | 18,079 | $ | 17,761 | |||||||
| Current debt | $ | 134 | $ | 213 | |||||||
| Current liabilities | 2,357 | 2,358 | |||||||||
| Long-term debt | 4,280 | 4,280 | |||||||||
| Decommissioning contingency for sold Gulf of America properties | 748 | 782 | |||||||||
| Deferred credits and other noncurrent liabilities | 3,162 | 3,125 | |||||||||
| APA shareholders’ equity | 6,456 | 6,093 | |||||||||
| Noncontrolling interest | 942 | 910 | |||||||||
| Total Liabilities and equity | $ | 18,079 | $ | 17,761 | |||||||
| Common shares outstanding at end of period | 353 | 353 | |||||||||
Page 6
APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions)
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.
| For the Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Costs incurred in oil and gas property: | |||||||||||
| Asset and leasehold acquisitions | $ | 4 | $ | 9 | |||||||
| Exploration and development | 649 | 794 | |||||||||
| Total Costs incurred in oil and gas property | $ | 653 | $ | 803 | |||||||
| Reconciliation of Costs incurred to Upstream capital investment: | |||||||||||
| Total Costs incurred in oil and gas property | $ | 653 | $ | 803 | |||||||
| Asset and leasehold acquisitions | (4) | (9) | |||||||||
| Asset retirement obligations incurred - oil and gas property | (4) | (5) | |||||||||
| Capitalized interest | (14) | (4) | |||||||||
| Exploration seismic and administration costs | (14) | (19) | |||||||||
| Upstream capital investment including noncontrolling interest - Egypt | $ | 617 | $ | 766 | |||||||
| Less noncontrolling interest - Egypt | (53) | (56) | |||||||||
| Total Upstream capital investment | $ | 564 | $ | 710 | |||||||
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.
| For the Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 554 | $ | 1,096 | |||||||
| Changes in operating assets and liabilities | 637 | (45) | |||||||||
| Cash flows from operations before changes in operating assets and liabilities | $ | 1,191 | $ | 1,051 | |||||||
| Adjustments to free cash flow: | |||||||||||
| Upstream capital investment including noncontrolling interest - Egypt | (617) | (766) | |||||||||
| Abandonment and decommissioning spend | (25) | (28) | |||||||||
| Leasehold acquisition and other | (7) | (5) | |||||||||
| Distributions to Sinopec noncontrolling interest | (65) | (126) | |||||||||
| Free cash flow | $ | 477 | $ | 126 | |||||||
Page 7
APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions)
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.
| For the Quarter Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Net cash provided by operating activities | $ | 554 | $ | 808 | $ | 1,096 | |||||||||||
| Adjustments: | |||||||||||||||||
| Exploration expense other than dry hole expense and unproved leasehold impairments | 14 | 14 | 19 | ||||||||||||||
| Current income tax provision | 302 | 101 | 306 | ||||||||||||||
| Other adjustments to reconcile net income to net cash provided by operating activities | (9) | (11) | (13) | ||||||||||||||
| Changes in operating assets and liabilities | 637 | 224 | (45) | ||||||||||||||
| Financing costs, net (excludes gain on extinguishment of debt) | 57 | 58 | 85 | ||||||||||||||
| Transaction, reorganization & separation costs | 7 | 36 | 37 | ||||||||||||||
| Adjusted EBITDAX (Non-GAAP) | $ | 1,562 | $ | 1,230 | $ | 1,485 | |||||||||||
Reconciliation of debt to net debt
Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
| March 31, | December 31, | September 30, | March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | ||||||||||||||||||||
| Current debt | $ | 134 | $ | 213 | $ | 213 | $ | 263 | |||||||||||||||
| Long-term debt | 4,280 | 4,280 | 4,275 | 4,288 | |||||||||||||||||||
| Total debt | 4,414 | 4,493 | 4,488 | 4,551 | |||||||||||||||||||
| Cash and cash equivalents | 293 | 516 | 475 | 107 | |||||||||||||||||||
| Net Debt | $ | 4,121 | $ | 3,977 | $ | 4,013 | $ | 4,444 | |||||||||||||||
Page 8
APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
Reconciliation of Income attributable to common stock to Adjusted earnings
Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.
Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.
| For the Quarter Ended | For the Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Before | Tax | After | Diluted | Before | Tax | After | Diluted | ||||||||||||||||||||||||||||||||||||||||
Tax | Impact | Tax | EPS | Tax | Impact | Tax | EPS | ||||||||||||||||||||||||||||||||||||||||
| Net income including noncontrolling interests (GAAP) | $ | 830 | $ | (287) | $ | 543 | $ | 1.53 | $ | 763 | $ | (345) | $ | 418 | $ | 1.15 | |||||||||||||||||||||||||||||||
| Income attributable to noncontrolling interests | 174 | (77) | 97 | 0.27 | 129 | (58) | 71 | 0.19 | |||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stock | 656 | (210) | 446 | 1.26 | 634 | (287) | 347 | 0.96 | |||||||||||||||||||||||||||||||||||||||
| Adjustments: * | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset and unproved leasehold impairments | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Valuation allowance and EPL revaluation | — | — | — | — | — | 98 | 98 | 0.27 | |||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | — | — | — | (142) | 31 | (111) | (0.30) | |||||||||||||||||||||||||||||||||||||||
| Unrealized derivative instrument losses | 47 | (10) | 37 | 0.11 | 28 | (6) | 22 | 0.06 | |||||||||||||||||||||||||||||||||||||||
| Transaction, reorganization & separation costs | 7 | (2) | 5 | 0.01 | 37 | (9) | 28 | 0.07 | |||||||||||||||||||||||||||||||||||||||
| Loss on divestitures, net | — | — | — | — | 2 | (1) | 1 | — | |||||||||||||||||||||||||||||||||||||||
| Adjusted earnings (Non-GAAP) | $ | 711 | $ | (222) | $ | 489 | $ | 1.38 | $ | 559 | $ | (174) | $ | 385 | $ | 1.06 | |||||||||||||||||||||||||||||||
*The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.
Page 9
FAQ
How did APA (APA) perform financially in Q1 2026?
APA reported net income attributable to common stock of $446 million, or $1.26 per diluted share, for Q1 2026. Adjusted earnings were $489 million, or $1.38 per diluted share, supported by strong cash generation and disciplined spending.
What were APA (APA) production levels in the first quarter of 2026?
APA’s first-quarter 2026 reported production averaged 442,000 BOE per day, with adjusted production of 363,000 BOE per day. U.S. oil production averaged 124,000 barrels per day, exceeding earlier guidance due to efficiency gains and improved uptime in the Permian Basin.
How much free cash flow did APA (APA) generate in Q1 2026?
APA generated $477 million of free cash flow in Q1 2026. This was based on cash flows from operations before changes in operating assets and liabilities of $1.191 billion, less upstream capital investment, abandonment and decommissioning spending, leasehold acquisition and other, and distributions to a noncontrolling interest.
What guidance did APA (APA) provide for 2026 production and spending?
For full-year 2026, APA raised its U.S. oil production outlook to 122,000 barrels per day and reaffirmed Egypt gross gas guidance of 540–550 MMCF per day. It maintained upstream capital investment guidance of about $2.1 billion and lease operating expense guidance of about $1.5 billion.
How is APA (APA) managing its debt and interest costs in 2026?
Through April 2026, APA repaid $634 million in near-term bond maturities. Together with prior deleveraging steps in 2025, these actions are expected to reduce annual interest expense by more than $60 million in 2026, improving ongoing cash flow after financing costs.
What was APA (APA) adjusted EBITDAX in Q1 2026 and why is it important?
APA reported adjusted EBITDAX of $1.6 billion for Q1 2026. This non-GAAP metric adds back interest, taxes, depreciation, depletion, amortization, and certain items, helping investors assess the company’s ability to fund capital programs, service debt, and return cash to shareholders.