Key takeaways

• Reported production of 464,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 387,000 BOE per day;
• Exceeded third-quarter reported production guidance in all three operating regions while delivering upstream capital and operating costs below guidance;
• Increased fourth-quarter Egypt natural gas production guidance on continued well outperformance and infrastructure utilization; increased fourth-quarter Permian oil production guidance on strong operational execution;
• Expect to achieve $350 million in run-rate controllable spend savings by year-end 2025, two years sooner than initially anticipated; established target for additional run-rate savings by year-end 2026; and
• Reduced net debt by $431 million during the quarter while returning $154 million to shareholders through dividends and share repurchases.

HOUSTON, Nov. 5, 2025 – APA Corporation (Nasdaq: APA) today announced its financial and operating results for the third quarter of 2025. 

APA reported net income attributable to common stock of $205 million, or $0.57 per diluted share. When adjusted for items that impact the comparability of results, APA’s adjusted earnings were $332 million, or $0.93 per diluted share. Net cash provided by operating activities was $1.5 billion, and adjusted EBITDAX was $1.3 billion.

“Our strong third-quarter results demonstrate our continued focus on operational execution, disciplined cost management, and the delivery of our strategic priorities,” said John J. Christmann IV, APA’s chief executive officer. “Once again, we exceeded production guidance across all operating areas, continued to deliver cost savings initiatives ahead of schedule and further strengthened our balance sheet. We believe the progress we have achieved in 2025 is sustainable and provides great momentum for the future.”

Third-quarter summary    
Third-quarter reported production was 464,000 BOE per day and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 387,000 BOE per day. U.S. oil production was 121,000 barrels per day, exceeding guidance on strong operational execution. Egypt production was also ahead of guidance, driven by the continued outperformance of natural gas well productivity and the optimization of existing infrastructure. 

Upstream capital investment and lease operating expense (LOE) were below guidance, while G&A expense was in line with guidance. The company generated $339 million of free cash flow, returning $154 million to shareholders through dividends and share repurchases. 

During the third quarter, APA reduced its net debt by approximately $430 million, driven by a combination of free cash flow generation and payments from Egypt. The company has reduced its net debt by nearly $2.3 billion since the third quarter of 2024, with a current net debt balance of roughly $4.0 billion. 

Accelerated delivery of cost reduction initiatives and increased targets 
With the continued momentum from its cost reduction initiatives, APA is once again accelerating and increasing its cost savings targets. The company now expects to achieve run-rate savings of $350 million by the end of 2025, two years sooner than originally anticipated. APA expects to recognize an additional $50 million to $100 million of run-rate savings by the end of 2026, spanning across development capital, LOE, and G&A.

The company is also increasing its anticipated realized savings target in 2025 to $300 million, compared to $200 million previously, driven by additional progress made on reducing drilling and completion (D&C) costs in the Permian and LOE in the North Sea. 

“The accelerated delivery of our cost reduction initiatives reflects our organization’s commitment to continuous improvement,” Christmann said. “We have now established a sustainably lower cost structure, improving the quality of our investment opportunities while strengthening the resiliency of our portfolio.”

Fourth-quarter outlook 
U.S. oil production guidance has been raised to 123,000 barrels-per-day following another quarter of strong execution. In Egypt, gross gas production is also expected to grow at a higher rate than previously anticipated. APA’s upstream capital investment in the fourth quarter is expected to be approximately $440 million, consistent with the company’s prior guidance issued in the second quarter. 

Conference call
APA will host a conference call to discuss third-quarter 2025 results at 10 a.m. Central time, Thursday, Nov. 6. 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,” “schedule,” “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, maintenance plans, production expectations, and run-rate and realized 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, 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

APA-F

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