APA Corporation announces second-quarter 2026 results. 09/08/2026 * Reported production of approximately 410,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 347,000 BOE per day and exceeded guidance; * Delivered U.S. oil production of 123,500 barrels of oil per day, 2,500 barrels of oil per day above guidance; * Generated $1.7 billion of net cash provided by operating activities, $738 million of free cash flow, and $1.8 billion of adjusted EBITDAX; returned $189 million to shareholders through dividends and share repurchases; * Repaid $752 million of near-term bond debt in the first half of the year; total debt has declined by $2.3 billion since year-end 2024, lowering annualized interest expense by more than $155 million; * 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; * Increased expected 2026 exit run-rate cost savings to $500 million, up from the prior $450 million target, reflecting continued momentum; and * Significantly advanced exploration portfolio through the pending Savant acquisition in Alaska and a new strategic partnership with Eni S.p.A in Uruguay. APA Corporation has announced its financial and operational results for the second quarter of 2026. APA reported net income attributable to common stock of $747 million, or $2.11 per diluted share. When adjusted for certain items that impact the comparability of results, APA's second-quarter earnings totaled $669 million, or $1.89 per diluted share. Second-quarter summary Second-quarter reported production was 410,000 BOE per day, and adjusted production was 347,000 BOE per day, both exceeding guidance. U.S. oil production averaged 123,500 barrels per day, 2,500 barrels per day above guidance, reflecting continued drilling and completion efficiency gains and strong base production performance in the Permian Basin. In Egypt, adjusted production averaged 61,000 BOE per day and was in line with guidance. Gross production averaged 207,000 BOE per day. Gross gas production increased to 539 million cubic feet (MMCF) per day, supported by continued execution of the company's gas-focused development program. Nearly half of Egypt's gas production is now benefiting from the revised pricing agreement. Net cash provided by operating activities was $1.7 billion, and adjusted EBITDAX was $1.8 billion. Upstream capital investment was $546 million, and lease operating expense was $353 million, both below guidance. Free cash flow totaled $738 million, bringing total free cash flow generation to $1.2 billion for the first half of the year. Balance sheet and shareholder returns APA repaid $752 million of near-term bond debt during the first half of 2026, including $673 million in the second quarter. The company has reduced total debt by $2.3 billion since year-end 2024, lowering annualized interest expense by more than $155 million. Net debt was $3.3 billion at the end of the second quarter. APA returned $189 million to shareholders during the second quarter through dividends and share repurchases, including the repurchase of 2.8 million shares at an average price of $35.26 per share; cumulative returns to shareholders during the first half of the year totaled $277 million. Consistent with prior years, the company expects to return at least 60% of free cash flow to shareholders in 2026 while also strengthening the balance sheet. "We delivered a very strong second quarter, with excellent operational execution across our core assets," said John J. Christmann IV, APA's CEO. "We're sustaining top-tier operational performance and driving stronger production, lower costs and lower capital intensity. These results reflect the structural improvements we've made over the past two years to become a cost leader and drive higher capital efficiency across the Permian and Egypt. APA is in a great position with a strengthening balance sheet, a highly capital-efficient base business, a clear path to organic oil production growth led by GranMorgu and multiple high-quality investment opportunities in exploration." Exploration portfolio update APA previously announced an agreement to acquire Savant Alaska, LLC for $70 million in upfront consideration prior to customary closing adjustments, plus additional contingent payments tied to future development of APA's eastern North Slope position. The acquisition secures ownership of key midstream, pipeline and field infrastructure adjacent to APA's existing acreage and is expected to enhance development flexibility, accelerate project timelines, and lower future development costs. It also enhances APA's ability to appraise and potentially develop discoveries across its broader eastern North Slope position. Closing is expected by year-end 2026, subject to regulatory approval and customary closing conditions. In Uruguay, APA signed an agreement with Eni S.p.A as a strategic partner in offshore Block 6. APA will retain a 60% working interest, with Eni funding most of the initial exploration well planned for 2027. "We continued to advance one of the industry's most differentiated exploration portfolios," said Christmann. "The pending Savant acquisition in Alaska will secure critical infrastructure adjacent to our position and increase flexibility as we evaluate next steps. In Uruguay, we're pleased to welcome Eni as a strategic partner in OFF-6." Cost reduction initiatives update Cost reduction initiatives continued to build momentum during the quarter. APA now expects to exit 2026 with approximately $500 million of run-rate savings, an increase from the company's prior $450 million target. This improvement results from continued strong execution across the portfolio, including field-level operating efficiencies, well cost reductions, and ongoing corporate streamlining, all of which are lowering the company's underlying cost structure. Full-year guidance update For full-year 2026, APA is raising its U.S. oil production outlook to 123,000 barrels of oil per day while maintaining U.S. capital at $1.3 billion. Total company upstream capital investment is expected to be $2.07 billion, reflecting slightly lower exploration spend due to a shift in timing of Suriname Block 58 exploration activity. Lease operating expenses guidance has been lowered by $25 million to $1.5 billion, reflecting ongoing cost savings.

APA Corporation reported second-quarter net income of $747 million, or $2.11 per diluted share, as production exceeded forecasts. The company generated $1.7 billion in operating cash flow and $738 million in free cash flow. US oil production reached 123,500 barrels per day, beating guidance by 2,500 bpd due to drilling efficiencies and stronger base production in the Permian Basin. APA raised its full-year US oil production forecast to 123,000 bpd whilst maintaining its $1.3 billion domestic capital budget. The producer repaid $673 million of bonds during the quarter. Total debt has declined by $2.3 billion since year-end 2024, reducing annualised interest expenses by over $155 million. APA returned $189 million to shareholders through dividends and share repurchases.

APA Corporation missed Wall Street's revenue expectations in Q2 2026, with sales rising 2.8% year on year to $2.37 billion versus analyst estimates of $2.44 billion. However, the oil and gas producer's non-GAAP profit of $1.89 per share exceeded consensus estimates by 1%. The company's free cash flow margin improved significantly to 31.1%, up from 5.8% in the same quarter last year. Oil production per day remained flat year on year. Over the past five years, APA's sales grew at a 9.2% compounded annual growth rate. The company operates across three continents, exploring for and producing crude oil, natural gas, and natural gas liquids in the US, Egypt, and the UK North Sea.