APA Corp
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
APA$44.63+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0002040266-25-000012
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001841666-25-000014
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 138 previous paragraphs and 148 current paragraphs.
84 unchanged; 48 reworded; 16 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
In the second quarter of 2025, the Company reported net income attributable to common stock of $603 million, or $1.67 per diluted share, compared to net income of $541 million, or $1.46 per diluted share, in the second quarter of 2024. The Company reported lower revenues and operating expenses in the second quarter of 2025 compared to the second quarter of 2024, but the decrease in revenues, primarily on lower commodity prices, was offset by unrealized gains on commodity derivative instruments and cost reductions.
Current report
•Subsequent to the end of the quarter, the Government of Egypt awarded the Company an additional 2 million net exploration acreage in the Western Desert for a period of five years. This new acreage expands on the Company’s existing position in the country. In addition to a signature bonus of $25 million, the Company has committed to a drilling program on the acreage that the Company believes it will be able to meet in the normal course of operations. The transaction is expected to close in the third-quarter of 2025.
Current report
Second-Quarter 2025 compared to Second-Quarter 2024
Current report
The Company’s worldwide oil production decreased 18.4 Mb/d to 235.2 Mb/d during the second quarter of 2025 from the comparative prior-year period, primarily a result of natural production decline in the U.S. and the North Sea and the sale of non-core assets in the U.S. These decreases were offset by drilling activity in the Permian Basin and downtime recovery in the North Sea.
Current report
NGL NGL revenues for the second quarter of 2025 totaled $153 million, a $6 million decrease from the comparative 2024 quarter. A 5 percent decrease in average realized prices decreased second-quarter 2025 NGL revenues by $9 million compared to the second quarter of 2024, partially offset by slightly higher average daily production, which increased revenues by $3 million. NGL revenues accounted for 9 percent of total oil and gas production revenues and 17 percent of worldwide production during the second quarter of 2025.
Current report
Year-to-Date 2025 compared to Year-to-Date 2024
Current report
Crude Oil Crude oil revenues for the first six months of 2025 totaled $3.0 billion, a $358 million decrease from the comparative 2024 period. A 15 percent decrease in average realized prices lowered oil revenues for the 2025 period by $485 million compared to the same prior-year period, while a 4 percent higher average daily production increased oil revenues by $127 million. Crude oil revenues accounted for 79 percent of total oil and gas production revenues and 51 percent of worldwide production for the first six months of 2025. Crude oil prices realized during the first six months of 2025 averaged $69.72 per barrel, compared to $81.57 per barrel in the comparative prior-year period.
Current report
Natural Gas Natural gas revenues for the first six months of 2025 totaled $417 million, a $106 million increase from the comparative 2024 period. A 21 percent increase in average realized prices increased natural gas revenues for the 2025 period by $63 million compared to the same prior-year period, while 12 percent higher average daily production increased revenues by $43 million. Natural gas revenues accounted for 11 percent of total oil and gas production revenues and 32 percent of worldwide production for the first six months of 2025.
Current report
The Company’s worldwide natural gas production increased 97.6 MMcf/d to 909 MMcf/d in the first six months of 2025 compared to the same prior-year period, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition in the U.S., and downtime recovery in the North Sea. Natural gas production was also higher as a result of reduced volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were offset by natural production decline in the U.S. and North Sea, the sale of non-core assets, and operational downtime in the U.S.
Current report
The Company’s worldwide NGL production increased 10.5 Mb/d to 79.7 Mb/d in the first six months of 2025 compared to the same prior-year period, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition in the U.S. NGL production was also higher as a result of reduced volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were offset by natural production decline in the U.S. and North Sea, the sale of non-core assets in the U.S., and the cessation of new drilling in the North Sea.
Current report
LOE decreased $93 million and $24 million from the second quarter and the first six months of 2024, respectively. On a per-unit basis, LOE decreased 18 percent and 11 percent in the second quarter and the first six months of 2025, respectively, when compared to the second quarter and the first six months of 2024. The decrease in absolute costs was primarily driven by overall lower operating costs and lower workover activity coupled with the sale of non-core assets in the Permian Basin, compared to the same prior-year periods. The decrease in absolute costs for the first six months of 2025 was partially offset by activity related to the Callon transaction.
Current report
Taxes other than income decreased $24 million and $7 million from the second quarter and the first six months of 2024, respectively, primarily from lower severance taxes driven by lower oil prices and lower ad valorem taxes.
Current report
Exploration expenses decreased $28 million and $146 million from the second quarter and the first six months of 2024, respectively. The decrease in expenses for the second quarter of 2025 was primarily driven by higher dry hole and seismic expenses in Alaska in the prior-year period. These decreases were partially offset by increased dry hole expenses in Egypt. The decrease in expenses for the first six months of 2025 was primarily driven by higher dry hole expenses in Alaska and Suriname in the prior-year period.
Current report
Net financing costs decreased $34 million and $167 million from the second quarter and the first six months of 2024, respectively. The lower overall interest expense was primarily a result of lower outstanding credit facility borrowings compared to the prior-year periods. The decrease in total financing costs, net during the first six months of 2025 was further driven by gains on extinguishment of debt from the Company’s cash tender purchases during the first quarter of 2025.
Current report
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act of 2025 (OBBBA). Among other changes, the OBBBA expanded and made permanent 100 percent bonus depreciation for eligible assets acquired and placed in service after January 19, 2025, and aligned the treatment of intangible drilling costs for CAMT purposes with regular tax treatment starting in 2026. The Company does not expect the OBBBA to have a material impact on total tax expense for the year ended December 31, 2025. Under U.S. GAAP, the financial statement impact of new legislation is recorded in the period of enactment. Therefore, the Company will record the impact of OBBBA in the third quarter of 2025.
Current report
Proceeds from Asset Divestitures The Company received $571 million and $729 million in proceeds from the divestitures of certain non-core assets during the first six months of 2025 and 2024, respectively. For more information regarding the Company’s acquisitions and divestitures, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Removed paragraphs (5)
Previous report
First-Quarter 2025 compared to First-Quarter 2024
Previous report
LOE increased $69 million from the first quarter of 2024. On a per-unit basis, LOE remained relatively flat in the first quarter of 2025 when compared to the first quarter of 2024. The increase in absolute costs was primarily driven by higher operating and labor costs coupled with higher workover activity, primarily from the Callon acquisition, and increased lifting costs in the North Sea. These increases were partially offset by the sale of non-core assets in the Permian Basin and changes in foreign exchange rates against the US dollar.
Previous report
Taxes other than income increased $17 million from the first quarter of 2024, primarily from higher severance taxes driven by increased production volumes in the U.S. and higher ad valorem taxes, compared to the same prior-year period.
Previous report
Exploration expenses decreased $118 million from the first quarter of 2024, primarily the result of higher dry hole expenses in Alaska and unproved leasehold impairments in the first quarter of 2024 compared to the current-year period.
Previous report
Net financing costs decreased $133 million from the first quarter of 2024, reflecting gains on extinguishment of debt from the Company’s cash tender purchases during the first quarter of 2025, partially offset by higher interest expense from higher weighted-average interest rates, compared to the same prior-year period.
Reworded paragraphs (48)
Previous wording
In the first quarter of 2025, the Company announced a significant cost reduction initiative. The Company’s primary objective is to drive sustainable cost savings for the long-term and is targeting over $350 million in annualized savings by the end of 2027. This will include reducing the Company’s overhead costs, addressing the capital cost structure for its drilling, completions, and facility investments, and improving efficiencies of day-to-day field operating practices.
Current wording
In the first quarter of 2025, the Company announced a significant cost reduction initiative. The Company’s primary objective is to drive sustainable cost savings for the long-term and is targeting over $350 million in annualized savings within 2026. This will include reducing the Company’s overhead costs, addressing the capital cost structure for its drilling, completions, and facility investments, and improving efficiencies of day-to-day field operating practices.
Previous wording
•The Company believes returning 60 percent of free cash flow through dividends and share repurchases creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of longer-term balance sheet strengthening.
Current wording
The Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns. The Company believes returning 60 percent of free cash flow through dividends and share repurchases creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of longer-term balance sheet strengthening.
Previous wording
•Beginning in the fourth quarter of 2021 and through the end of the first quarter of 2025, the Company has repurchased 89.7 million shares of the Company’s common stock. Subsequent to the quarter ended March 31, 2025 through April 30, 2025, the Company repurchased 0.6 million shares, and as of April 30, 2025, the Company had remaining authorization to repurchase up to 29.8 million shares under the Company’s share repurchase programs.
Current wording
•Beginning in the fourth quarter of 2021 and through the end of the second quarter of 2025, the Company has repurchased 92.4 million shares of the Company’s common stock. Subsequent to the quarter ended June 30, 2025 through July 31, 2025, the Company repurchased 1.0 million shares, and as of July 31, 2025, the Company had remaining authorization to repurchase up to 26.7 million shares under the Company’s share repurchase programs.
Previous wording
In the first quarter of 2025, the Company reported net income attributable to common stock of $347 million, or $0.96 per diluted share, compared to net income of $132 million, or $0.44 per diluted share, in the first quarter of 2024. The increase in net income in the first quarter of 2025, compared to the first quarter of 2024, was primarily driven by increased production from drilling activity in the Permian Basin coupled with the Callon merger, as well as gains on extinguishment of debt. These increases to net income were partially offset by higher depreciation, depletion, and amortization and higher income tax expense compared to the same prior-year period.
Current wording
In the first six months of 2025, the Company reported net income attributable to common stock of $950 million, or $2.62 per diluted share, compared to net income of $673 million, or $2.00 per diluted share, in the first six months of 2024. The increase in net income in the first six months of 2025 was primarily driven by increased production from drilling activity in the Permian Basin coupled with the Callon merger, as well as gains on extinguishment of debt and derivative instruments.
Previous wording
The Company generated $1.1 billion of cash from operating activities during the first three months of 2025, 198 percent higher than the first three months of 2024. APA’s higher operating cash flows for the first three months of 2025 were primarily driven by higher revenues as a result of increased oil and gas production, higher natural gas realized prices, and timing of working capital items. The Company repurchased 4.4 million shares of its common stock for $100 million and paid $91 million in dividends to APA common stockholders during the first three months of 2025. The Company exited the quarter with approximately $5.2 billion of long-term debt, a reduction of $754 million from year-end 2024.
Current wording
The Company generated $2.3 billion of cash from operating activities during the first six months of 2025, 83 percent higher than the first six months of 2024. APA’s higher operating cash flows for the first six months of 2025 were primarily driven by the timing of working capital items. The Company repurchased 7.1 million shares of its common stock for $150 million and paid $181 million in dividends to APA common stockholders during the first six months of 2025. The Company exited the quarter with approximately $4.6 billion of debt, a reduction of $1.5 billion from year-end 2024.
Previous wording
•Daily boe production from the Company’s U.S. assets, which increased 39 percent from the first quarter of 2024, accounted for 64 percent of the Company’s worldwide production during the first quarter of 2025. The Company averaged eight drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and four rigs in the Delaware Basin in the first quarter of 2025. The Company brought online 31 operated wells during the quarter. The Company’s core Permian Basin development program continues to represent key growth areas for the U.S. assets.
Current wording
•Daily boe production from the Company’s U.S. assets, which decreased 4 percent from the second quarter of 2024, accounted for 62 percent of the Company’s worldwide production during the second quarter of 2025. The Company averaged seven drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and three rigs in the Delaware Basin in the second quarter of 2025. The Company brought online 36 operated wells during the quarter. The Company’s core Permian Basin development program continues to represent key growth areas for the U.S. assets.
Previous wording
•APA holds approximately 750 MMBtu/d of firm capacity on various pipelines. In the first and second quarters of 2025, the Company entered into basis swap contracts purchasing NYMEX Henry Hub/Waha and selling NYMEX Henry Hub/HSC for May to December 2025 on approximately two-thirds of its firm transport capacity, thereby locking in a significant portion of cash flows associated with its marketing activities for the remainder of the year. Refer to Note 4—Derivative Instruments and Hedging Activities for further discussion of these basis swap agreements.
Current wording
•APA holds approximately 750 MMBtu/d of firm capacity on various pipelines. As of June 30, 2025, the Company had open basis swap contracts which purchased NYMEX Henry Hub/Waha and sold NYMEX Henry Hub/HSC on approximately two-thirds of its firm transport capacity for 2025, thereby locking in a significant portion of cash flows associated with its marketing activities for the remainder of the year. Refer to Note 4—Derivative Instruments and Hedging Activities for further discussion of these basis swap agreements.
Previous wording
•During the first quarter of 2025, the Company and its partners announced preliminary results of an exploratory well in Alaska, confirming the successful discovery of a reservoir. A successful flow test of the well was announced in April, with the well averaging 2,700 b/d during the final flow period. The Company will evaluate the data from the well to determine next steps, and further appraisal drilling will determine the ultimate size of the discovery. The Company holds a 50 percent ownership interest in the project.
Current wording
•During the second quarter of 2025, the Company and its partners announced a successful flow test of an exploratory well in Alaska, with the well averaging 2,700 b/d during the final flow period. The Company will evaluate the data from the well to determine next steps, and further appraisal drilling will determine the ultimate size of the discovery. The Company holds a 50 percent ownership interest in the project.
Previous wording
•In May 2025, the Company entered into an agreement to sell certain non-core assets and leasehold in the Permian Basin, reflecting a full exit from New Mexico, for cash consideration of $608 million, subject to customary post-closing adjustments. The transaction is expected to close late in the second of 2025, and the divested assets represent less than 5 percent of the Company’s Permian Basin oil production. The Company intends to use the proceeds from this transaction primarily for debt reduction.
Current wording
•During the second quarter of 2025, the Company completed the sale of certain non-core assets and leasehold in the Permian Basin, reflecting a full exit from New Mexico. The assets had a carrying value of $300 million and associated retirement obligation of $9 million, which were exchanged for total cash consideration of $573 million, inclusive of post-closing adjustments. The Company recognized a gain of $282 million in association with this sale. The divested assets represent less than 5 percent of the Company’s Permian Basin oil production. The Company used the proceeds from this transaction primarily for debt reduction.
Previous wording
•In Egypt, the Company continued its drilling and workover activity with a focus on oil prospects. The Company averaged 13 drilling rigs and drilled 18 new productive wells during the first quarter of 2025. During the same period, the Company averaged 19 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency. First quarter 2025 gross and net production from the Company’s Egypt assets decreased 5 percent and increased 3 percent, respectively, from the first quarter of 2024.
Current wording
•In Egypt, the Company averaged 13 drilling rigs and drilled 20 new productive wells during the second quarter of 2025. During the same period, the Company averaged 19 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency. Second quarter 2025 gross and net production from the Company’s Egypt assets decreased 4 percent and increased 8 percent, respectively, from the second quarter of 2024.
Previous wording
•In Egypt, following the success of the gas program and the relative softening of oil prices, the Company now expects one-third of its rig activities to be gas-focused and anticipates continued strong performance for the rest of the year, with realized gas prices increasing through the period.
Current wording
•In Egypt, following the recent success of the gas program and the relative softening of oil prices, the Company now expects one-third of its activities to be gas-focused and anticipates continued strong performance for the rest of the year, with realized gas prices increasing through the period.
Previous wording
(4) Average sales volumes from the North Sea for the first quarters of 2025 and 2024 were 36,704 boe/d and 35,078 boe/d, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
Current wording
(4) Average sales volumes from the North Sea for the second quarters of 2025 and 2024 were 28,015 boe/d and 37,491 boe/d, respectively, and 32,336 boe/d and 36,285 boe/d for the first six months of 2025 and 2024, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
Previous wording
Crude Oil Crude oil revenues for the first quarter of 2025 totaled $1.6 billion, a $168 million increase from the comparative 2024 quarter. An 18 percent higher average daily production increased first-quarter 2025 oil revenues by $291 million compared to the first quarter of 2024, while a 9 percent decrease in average realized prices decreased revenues by $123 million. Crude oil revenues accounted for 79 percent of total oil and gas production revenues and 50 percent of worldwide production in the first quarter of 2025. Crude oil prices realized in the first quarter of 2025 averaged $73.73 per barrel, compared with $80.65 per barrel in the comparative prior-year quarter.
Current wording
Crude Oil Crude oil revenues for the second quarter of 2025 totaled $1.4 billion, a $526 million decrease from the comparative 2024 quarter. A 20 percent decrease in average realized prices decreased second-quarter 2025 oil revenues by $387 million compared to the second quarter of 2024, while a 7 percent lower average daily production decreased revenues by $139 million. Crude oil revenues accounted for 80 percent of total oil and gas production revenues and 51 percent of worldwide production in the second quarter of 2025. Crude oil prices realized in the second quarter of 2025 averaged $65.58 per barrel, compared with $82.28 per barrel in the comparative prior-year quarter.
Previous wording
Natural Gas Natural gas revenues for the first quarter of 2025 totaled $233 million, a $57 million increase from the comparative 2024 quarter. A 17 percent higher average daily production increased first-quarter 2025 natural gas revenues by $33 million compared to the first quarter of 2024, while a 14 percent increase in average realized prices increased revenues by $24 million. Natural gas revenues accounted for 11 percent of total oil and gas production revenues and 33 percent of worldwide production during the first quarter of 2025.
Current wording
Natural Gas Natural gas revenues for the second quarter of 2025 totaled $184 million, a $49 million increase from the comparative 2024 quarter. A 29 percent increase in average realized prices increased second-quarter 2025 natural gas revenues by $38 million compared to the second quarter of 2024, while a 7 percent higher average daily production increased revenues by $11 million. Natural gas revenues accounted for 11 percent of total oil and gas production revenues and 32 percent of worldwide production during the second quarter of 2025.
Previous wording
The Company’s worldwide natural gas production increased 137.0 MMcf/d to 923.6 MMcf/d during the first quarter of 2025 from the comparative prior-year period, primarily a result of increased drilling activity in Egypt and the Permian Basin coupled with the Callon acquisition in the U.S. Natural gas production was also higher as a result of reduced volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were partially offset by natural production decline in the U.S. and North Sea and the sale of non-core assets and operational downtime in the U.S.
Current wording
The Company’s worldwide natural gas production increased 58.5 MMcf/d to 894.1 MMcf/d during the second quarter of 2025 from the comparative prior-year period, primarily a result of increased drilling activity in Egypt and the Permian Basin. Natural gas production was also higher as a result of lower volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were partially offset by natural production decline in the U.S. and North Sea, the sale of non-core assets, and operational downtime in the U.S.
Previous wording
The Company’s worldwide NGL production increased 20.6 Mb/d to 78.5 Mb/d during the first quarter of 2025 from the comparative prior-year period, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition. NGL production was also higher as a result of reduced volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were partially offset by natural production decline, the sale of non-core assets, and operational downtime in the U.S.
Current wording
The Company’s worldwide NGL production increased 0.3 Mb/d to 80.8 Mb/d during the second quarter of 2025 from the comparative prior-year period, primarily a result of increased drilling activity in the Permian Basin and reduced volume curtailments at Alpine High compared with the 2024 period in response to extreme Waha basis differentials. These increases were offset by natural production decline in the U.S. and North Sea, the sale of non-core assets and operational downtime in the U.S.
Previous wording
The Company’s worldwide oil production increased 36.4 Mb/d to 236.5 Mb/d during the first quarter of 2025 from the comparative prior-year period, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition. These increases were partially offset by natural production decline in the U.S. and North Sea and the sale of non-core assets in the U.S. at the end of 2024.
Current wording
The Company’s worldwide oil production increased 9.0 Mb/d to 235.9 Mb/d in the first six months of 2025 compared to the same prior-year period, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition in the U.S. and downtime recovery in the North Sea. These increases were offset by natural production decline across all assets and the sale of non-core assets in the U.S.
Previous wording
NGL NGL revenues for the first quarter of 2025 totaled $206 million, a $66 million increase from the comparative 2024 quarter. A 35 percent higher average daily production increased first-quarter 2025 NGL revenues by $53 million compared to the first quarter of 2024, while a 10 percent increase in average realized prices increased revenues by $13 million. NGL revenues accounted for 10 percent of total oil and gas production revenues and 17 percent of worldwide production during the first quarter of 2025.
Current wording
NGL NGL revenues for the first six months of 2025 totaled $359 million, a $60 million increase from the comparative 2024 period. A 15 percent higher average daily production increased NGL revenues for the 2025 period by $48 million compared to the same prior-year period, while a 4 percent increase in average realized prices increased revenues by $12 million. NGL revenues accounted for 10 percent of total oil and gas production revenues and 17 percent of worldwide production for the first six months of 2025.
Previous wording
Purchased oil and gas sales represent volumes primarily attributable to domestic oil and gas purchases that were sold by the Company to fulfill oil and natural gas takeaway obligations and delivery commitments. Sales related to purchased volumes totaled $597 million and $203 million during the first quarters of 2025 and 2024, respectively. Purchased oil and gas sales were partially offset by associated purchase costs of $474 million and $163 million during the first quarters of 2025 and 2024, respectively. The increase in purchased oil and gas sales was primarily driven by higher oil volume sales and higher gas prices, as well as activity associated with the Callon acquisition.
Current wording
Purchased oil and gas sales represent volumes primarily attributable to domestic oil and gas purchases that were sold by the Company to fulfill oil and natural gas takeaway obligations and delivery commitments. Sales related to purchased volumes totaled $460 million and $342 million during the second quarters of 2025 and 2024, respectively, and $1.1 billion and $545 million during the first six months of 2025 and 2024, respectively. Purchased oil and gas sales were partially offset by associated purchase costs of $304 million and $210 million during the second quarters of 2025 and 2024, respectively, and $778 million and $373 million, respectively, during the first six months of 2025 and 2024, respectively. Gross purchased oil and gas sales values were higher in the second quarter and the first six months of 2025, primarily driven by higher natural gas volume sales and higher gas prices, as well as activity associated with the Callon acquisition.
Previous wording
GPT costs increased $20 million from the first quarter of 2024, primarily driven by an increase in oil, natural gas and NGL production volumes in the U.S. and increased lifting costs in the North Sea compared to the same prior-year period.
Current wording
GPT costs decreased $17 million and increased $3 million from the second quarter and the first six months of 2024, respectively. The decrease in third-party costs for the second quarter of 2025 was primarily driven by decreased oil production volumes in the U.S. and decreased natural gas and NGL production volumes in the North Sea compared to the same prior-year period. The increase in third-party costs for the first six months of 2025 was driven by an increase in oil, natural gas, and NGL production volumes in the U.S. compared to the same prior-year period, primarily related to the Callon acquisition.
Previous wording
Purchased oil and gas costs increased $311 million from the first quarter of 2024, primarily driven by increased oil volume purchases and gas volumes purchased at a higher rate coupled with activity associated with the Callon acquisition. With widening margins under third-party gas agreements, purchased oil and gas costs were more than offset by associated sales to fulfill oil and natural gas takeaway obligations and delivery commitments in the first quarter of 2025, as discussed above.
Current wording
Purchased oil and gas costs increased $94 million and $405 million from the second quarter and the first six months of 2024, respectively. The increase in the second quarter and the first six months of 2025 was primarily driven by increased oil volume purchases and gas volumes purchased at a higher rate coupled with activity associated with the Callon acquisition, compared to the same prior-year periods. With widening margins under third-party gas agreements, purchased oil and gas costs were more than offset by associated sales to fulfill oil and natural gas takeaway obligations and delivery commitments in the second quarter and first six months of 2025, as discussed above.
Previous wording
G&A expenses increased $5 million from the first quarter of 2024, primarily driven by higher cash-based stock compensation expense resulting from changes in expected payouts for the Company’s performance program, as well as higher labor costs from the Callon acquisition.
Current wording
G&A expenses decreased $19 million and $14 million from the second quarter and the first six months of 2024, respectively. The decreases in expenses compared with the comparative prior-year periods were primarily driven by the impacts of focused cost-reduction efforts on personnel and other overhead expenses. The decreases in expense for the first six months of 2025 were partially offset by higher cash-based stock compensation expense resulting from changes in expected payouts for the Company’s performance programs and the Company’s stock price.
Previous wording
TRS costs increased $10 million from the first quarter of 2024, primarily associated with employee separations and other cost-saving initiatives.
Current wording
TRS costs decreased $104 million and $94 million from the second quarter and the first six months of 2024, respectively. TRS costs for 2025 were primarily associated with employee separations and other cost-saving initiatives, while TRS costs for 2024 comprised primarily expenses associated with the Callon merger.
Previous wording
Total DD&A expenses increased $213 million from the first quarter of 2024, primarily driven by depletion on the Company’s oil and gas properties. The Company’s DD&A rate on its oil and gas properties increased $2.91 per boe from the first quarter of 2024. The increase in DD&A on a per boe basis was driven by year-end 2024 negative gas price-related reserve revisions in the U.S. Permian Basin coupled with higher DD&A rates resulting from the Callon acquisition. Higher absolute dollar amounts of DD&A was directly impacted by these higher rates.
Current wording
Total DD&A expenses decreased $58 million and increased $155 million from the second quarter and the first six months of 2024, respectively. The Company’s DD&A rate on its oil and gas properties decreased $1.05 per boe and increased $0.86 per boe from the second quarter and the first six months of 2024, respectively. The decrease in DD&A absolute expenses and on a per boe basis for the second quarter of 2025 was primarily driven by lower DD&A rates resulting from the sale of non-core assets in the Permian Basin. For the first six months of 2025, the Company’s higher DD&A rate on its oil and gas properties on a per boe basis was driven by year-end 2024 negative gas price-related reserve revisions in the U.S. Permian Basin coupled with higher DD&A rates resulting from the Callon acquisition. Higher absolute dollar amounts of DD&A for the first six months of 2025 was directly impacted by these higher rates.
Previous wording
The Company’s effective income tax rate for the three months ended March 31, 2025 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations, and a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2025 on March 20, 2025. The Company’s effective income tax rate for the three months ended March 31, 2024 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations.
Current wording
The Company’s effective income tax rate for the six months ended June 30, 2025 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations and a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2025 on March 20, 2025. The Company’s effective income tax rate for the six months ended June 30, 2024 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations.
Previous wording
The Company expects its full-year 2025 estimated upstream capital investment to be approximately $2.2 billion to $2.3 billion. Given the scale and pace of efficiency gains in the Permian drilling program, the Company is reducing its current eight-rig program to six rigs by the end of the second quarter of 2025. The Company is planning a 12-rig program in Egypt, with one rig dedicated to gas appraisal and exploration. This activity set equates to a combined development capital budget for the Permian Basin, Egypt, and North Sea of $2.0 billion to $2.1 billion. In addition, the Company will invest approximately $200 million for Suriname development and $75 million for other exploration activities. APA remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns through dividends and share repurchases.
Current wording
The Company expects its full-year 2025 estimated upstream capital investment to be approximately $2.3 billion to $2.4 billion. During the second quarter of 2025, the Company initiated its plans to reduce Permian rig count from eight to six, reflecting a sustained step-change in drilling efficiencies. In Egypt, following the recent success of the gas program and the relative softening of oil prices, the Company now expects one-third of its activities to be gas-focused. This activity set equates to a combined development capital budget for the Permian Basin, Egypt, and North Sea of approximately $2.0 billion. In addition, the Company will invest approximately $275 million for Suriname development and $65 million for other exploration activities. APA remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns through dividends and share repurchases.
Previous wording
Net cash provided by operating activities during the first three months of 2025 totaled $1.1 billion, $728 million higher from the first three months of 2024, primarily due to higher revenues from increased oil and gas production, higher natural gas prices, and timing of working capital items.
Current wording
Net cash provided by operating activities during the first six months of 2025 totaled $2.3 billion, $1.1 billion higher from the first six months of 2024, primarily due to timing of working capital items.
Previous wording
Fixed-Rate Debt Borrowings During the first three months of 2025, the Company issued new notes for proceeds of $846 million, after deducting discounts and loan costs, to fund in part APA’s purchase of Apache notes in APA’s cash tender offers.
Current wording
Fixed-Rate Debt Borrowings During the first six months of 2025, the Company issued new notes for proceeds of $846 million, after deducting discounts and loan costs, to fund in part APA’s purchase of Apache notes in APA’s cash tender offers.
Previous wording
Additions to Oil & Gas Property During the first three months of 2025 and 2024, exploration and development cash expenditures were $777 million and $467 million, respectively. The increase in capital investment compared to the prior-year period is reflective of the properties acquired from the Callon acquisition, which increased the number of drilling rigs being operated in the Permian Basin, partially offset by the Company’s decision to eliminate drilling activity in the North Sea. The Company operated an average of approximately 22 drilling rigs during the first three months of 2025, compared to an average of approximately 23 drilling rigs during the first three months of 2024.
Current wording
Additions to Oil & Gas Property During the first six months of 2025 and 2024, exploration and development cash expenditures were $1.4 billion and $1.2 billion, respectively. The increase in capital investment compared to the prior-year period is reflective of the properties acquired from the Callon acquisition, which increased the number of drilling rigs being operated in the Permian Basin, partially offset by the Company’s decision to eliminate drilling activity in the North Sea and the sale of certain non-core assets and leasehold in the Permian Basin. The Company operated an average of approximately 21 drilling rigs during the first six months of 2025, compared to an average of approximately 25 drilling rigs during the first six months of 2024.
Previous wording
Leasehold and Property Acquisitions During the first three months of 2025 and 2024, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $13 million and $63 million, respectively.
Current wording
Leasehold and Property Acquisitions During the first six months of 2025 and 2024, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $20 million and $63 million, respectively.
Previous wording
Proceeds from Commercial Paper and Revolving Credit Facilities, Net As of March 31, 2025, outstanding borrowings under the Company’s commercial paper and U.S. dollar denominated syndicated credit facility were $766 million, an increase of $433 million since December 31, 2024. During the first three months of 2024, the Company had no net borrowings under the Company’s U.S. dollar denominated syndicated credit facility.
Current wording
Payments on Commercial Paper and Revolving Credit Facilities, Net During the first six months of 2025, the Company made net payments of $333 million on its commercial paper and U.S. dollar denominated syndicated credit facility borrowings. As of June 30, 2025, there were no outstanding borrowings under each of the Company’s commercial paper and U.S. dollar denominated syndicated credit facility.
Previous wording
Payments on Term Loan Facility During the first three months of 2025, the Company made a payment of $900 million on its syndicated term loan credit agreement and fully repaid the term loans. For additional details of this credit agreement, see “Unsecured Committed Term Loan Facility”in the Liquidity section below.
Current wording
Payments on Term Loan Facility During the first six months of 2025, the Company made a payment of $900 million on its syndicated term loan credit agreement and fully repaid the term loans. For additional details of this credit agreement, see “Unsecured Committed Term Loan Facility”in the Liquidity section below.
Previous wording
Payments on Fixed-Rate Debt During the first three months of 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures of Apache and made open market repurchases for an aggregate cash payment amount of $905 million, reflecting principal amounts, discount to par, and associated fees.
Current wording
Payments on Fixed-Rate Debt During the first six months of 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures of Apache and made open market repurchases for an aggregate cash payment amount of $954 million, reflecting principal amounts, discount to par, and associated fees.
Previous wording
Dividends Paid to APA Common Stockholders During the first three months of 2025 and 2024, the Company paid $91 million and $76 million, respectively, for dividends on its common stock.
Current wording
Dividends Paid to APA Common Stockholders During the first six months of 2025 and 2024, the Company paid $181 million and $168 million, respectively, for dividends on its common stock.
Previous wording
Distributions to Noncontrolling Interest Sinopec International Petroleum Exploration and Production Corporation (Sinopec) holds a one-third minority participation interest in the Company’s oil and gas operations in Egypt. During the first three months of 2025 and 2024, the Company paid $126 million and $70 million, respectively, in cash distributions to Sinopec.
Current wording
Distributions to Noncontrolling Interest Sinopec International Petroleum Exploration and Production Corporation (Sinopec) holds a one-third minority participation interest in the Company’s oil and gas operations in Egypt. During the first six months of 2025 and 2024, the Company paid $217 million and $123 million, respectively, in cash distributions to Sinopec.
Previous wording
Treasury Stock Activity, net In the first three months of 2025, the Company repurchased 4.4 million shares at an average price of $22.87 per share and an aggregate purchase price of approximately $100 million, and as of March 31, 2025, the Company had remaining authorization to repurchase 30.4 million shares. In the first three months of 2024, the Company repurchased 3.0 million shares at an average price of $33.27 per share and an aggregate purchase price of approximately $101 million.
Current wording
Treasury Stock Activity, net In the first six months of 2025, the Company repurchased 7.1 million shares at an average price of $21.21 per share and an aggregate purchase price of approximately $150 million, and as of June 30, 2025, the Company had remaining authorization to repurchase 27.7 million shares. In the first six months of 2024, the Company repurchased 4.5 million shares at an average price of $31.77 per share and an aggregate purchase price of approximately $144 million.
Previous wording
Cash and Cash Equivalents As of March 31, 2025, the Company had $67 million in cash and cash equivalents. The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase.
Current wording
Cash and Cash Equivalents As of June 30, 2025, the Company had $107 million in cash and cash equivalents. The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase.
Previous wording
Debt As of March 31, 2025, the Company had $5.4 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache, credit facility and/or commercial paper borrowings, and finance lease obligations. As of March 31, 2025, current debt included $2 million of finance lease obligations and $129 million of APA and Apache notes coming due within the next year.
Current wording
Debt As of June 30, 2025, the Company had $4.6 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache, credit facility and/or commercial paper borrowings, and finance lease obligations. As of June 30, 2025, current debt included $2 million of finance lease obligations and $261 million of APA and Apache notes coming due within the next year.
Previous wording
Indenture Debt Activity During the quarter ended March 31, 2025, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $55 million for an aggregate purchase price of $50 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $7 million. The Company recognized a $7 million gain on these repurchases. The repurchases were partially financed by APA’s borrowing under the Company’s commercial paper program. Refer to discussion of APA exchange and tender offers for Apache indenture debt below for further details regarding the gain on extinguishment of debt.
Current wording
Indenture Debt Activity During the first six months of 2025, the Company purchased in the open market and had canceled indebtedness issued under indentures of APA and Apache in an aggregate principal amount of $108 million for an aggregate purchase price of $100 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $10 million. The Company recognized a $10 million gain on these repurchases. The repurchases were partially financed by APA’s borrowing under the Company’s commercial paper program. Refer to discussion of APA exchange and tender offers for Apache indenture debt below for further details regarding the gain on extinguishment of debt during the quarter ended March 31, 2025.
Previous wording
•Each series of APA notes and debentures issued in settlement of the exchange and tender offers and new notes offering are fully and unconditionally guaranteed by Apache until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than $1 billion.
Current wording
•Each series of APA notes and debentures issued in settlement of the exchange and tender offers and new notes offering were fully and unconditionally guaranteed by Apache until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures was less than $1 billion, which occurred in May 2025, after which Apache’s guarantees were terminated in accordance with their terms on May 16, 2025.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns.