Key Takeaways

• Reported production of 465,000 barrels of oil equivalent (BOE) per day; adjusted production excluding Egypt noncontrolling interest and tax barrels was 394,000 BOE per day;
• Exceeded second-quarter reported production guidance in all three operating regions while delivering global upstream capital in line with guidance;
• Initiated Permian rig count reduction from eight to six during the second quarter due to a step change in drilling efficiencies; now expect to keep Permian volumes flat with six rigs, down from six and a half rigs mentioned in May;
• Accelerated three-year cost reduction initiatives, targeting to achieve $350 million in run-rate savings in 2026 instead of by year-end 2027; raised 2025 in-year and year-end run-rate savings targets;
• Reduced net debt by more than 15% during the quarter while returning $140 million to shareholders through dividends and share repurchases; and
• Secured presidential approval for the direct award of approximately 2 million acres of additional leasehold in Egypt, increasing footprint by more than 35%.

HOUSTON, Aug. 6, 2025 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the second quarter of 2025. 

APA reported net income attributable to common stock of $603 million, or $1.67 per diluted share. When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were $313 million, or $0.87 per diluted share. Net cash provided by operating activities was $1.2 billion and adjusted EBITDAX was $1.3 billion.

“Our strong second-quarter results reflect the continued momentum across our entire portfolio as a result of the hard work and dedication of the APA team,” said John J. Christmann IV, CEO of APA Corporation. “In the Permian, our progress is evident in the numbers, where we exceeded production guidance while reducing our rig count by 25% due to continued efficiency gains in the field. In Egypt, we exceeded our quarterly gas production guidance and have once again increased our expectations for the gas program in the second half of the year. As a testament to our ongoing partnership with the country of Egypt, we have secured presidential approval for the direct award of approximately 2 million additional acres, unlocking a material amount of prospective oil and gas resource that we will begin drilling by the end of the year.”

Second-Quarter summary  

Second-quarter reported production was 465,000 BOE per day and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 394,000 BOE per day. U.S. oil production was 124,000 barrels per day; exceeding guidance set in May despite a slight impact from the New Mexico asset sale that closed in mid-June. Egypt reported production was also ahead of guidance at 144,000 BOE per day, driven by the strong performance of recent gas discoveries and the company’s ability to continue increasing utilization of existing infrastructure.

During the quarter, APA initiated its plans to reduce Permian rig count from eight to six, reflecting a sustained step-change in drilling efficiencies. The company now believes it can hold go-forward Permian oil production flat at six rigs, a reduction from the six and a half rigs stated in May. Despite the 25% reduction in rig count, the company expects to end the year with a higher inventory of drilled-uncompleted wells than originally assumed in February, due to rapidly increasing drilling speeds. Sustained capital efficiency improvements in the Permian are driving a $130 million reduction in original Permian capital guidance, while maintaining original oil production guidance, adjusted for the New Mexico asset sale, which closed in mid-June. 

G&A and lease operating expenses were considerably below guidance, while upstream capital investment was in line. 

Shareholder returns and net debt reduction update

During the quarter, APA returned $140 million to shareholders through its base dividend and share repurchase program. The company also reduced net debt by over $850 million, supported by proceeds from the New Mexico asset sale and positive working capital inflows, primarily associated with payments from Egypt.

To emphasize the ongoing commitment to a strong balance sheet, APA is initiating a long-term net debt target of $3 billion. This target reflects the company’s confidence in the durability of its cash flows, the strength of its asset base, and a commitment to maintain an investment grade credit profile through commodity cycles. The company plans to continue its balanced capital allocation approach and remains committed to returning 60% of free cash flow to shareholders through base dividends and share repurchases. 

Cost reduction initiatives 

Following strong performance in the first half of the year, APA is outpacing its three-year cost reduction targets and now expects to achieve $350 million in run-rate savings in 2026, compared to its prior goal of year-end 2027. The company also increased its 2025 realized savings target by more than 50% from $130 million to $200 million and raised the year-end run-rate savings target from $225 million to $300 million. The acceleration in the reduction of controllable spend is driven by capital efficiency gains in both the Permian and Egypt, as well as further improvements to the company’s overhead cost structure. 

“At the start of this year, we set forth some important goals for reducing controllable spend over the next three years,” continued Christmann. “These initiatives are progressing very well, and we are on the path to achieving significant and lasting improvements to our cost structure. We see considerable opportunities to further streamline our business and simplify the way we operate. Given the magnitude of these opportunities, it is clear we have upside to our three-year goal.”

GranMorgu project update

In Suriname, full-year 2025 capital guidance for the development of the 220,000 barrels of oil per day GranMorgu project was raised to $275 million, reflecting additional milestone payments expected in the second half of the year; total project costs remain unchanged. APA’s carried interest structure continues to support favorable project economics. APA and its partner, TotalEnergies, remain on track for first oil from Suriname Block 58 in mid-2028. 

“I would like to commend our partner, TotalEnergies, on their execution of the GranMorgu project since announcing FID last fall,” Christmann said. “Project costs remain unchanged, and we remain on track for first oil by the middle of 2028,” he concluded.

2025 Sustainability Report 

The company recently released its 2025 Sustainability Publications. This year, APA simplified its reporting into two documents: “Our Approach to Sustainability” details the ongoing sustainability programs and initiatives, and the “2025 Sustainability Progress Report” contains progress on 2024 goals, annual highlights, key performance data and new goals for 2025.

Conference call

APA will host a conference call to discuss second-quarter 2025 results at 10 a.m. Central time, Thursday, Aug. 7. The conference call will be webcast from APA’s website, 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.

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,” “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, cost reductions, rig counts, asset sales, monetizations and the timing of first oil in Suriname. 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, 2024, 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.

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, 2024, available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 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. 

Click here for the full release with quarterly financial statements. 

Contacts

Investor: (281) 302-2286
Media: (713) 296-7276
Website: www.apacorp.com

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