APA Corp
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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, 2026 · Filed Aug 6, 2026
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 2026-03-31; filed 2026-05-07.
0001841666-26-000034
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001841666-26-000053
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 117 previous paragraphs and 129 current paragraphs.
69 unchanged; 43 reworded; 16 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 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
•During the second quarter of 2026, the Company entered into an agreement to acquire Savant Alaska, LLC for approximately $70 million in upfront consideration, plus contingent payments tied to future development of the Company’s Alaska position. The to-be acquired infrastructure is expected to support operations beginning with 2026-2027 exploration and appraisal activities, while enhancing future development flexibility. Upon closing, the transaction is expected to add approximately 104,000 gross acres and approximately 1,500 b/d of oil production. The transaction is expected to close by year-end 2026.
Current report
•During the quarter, the Government of Egypt awarded the Company a five-year extension covering approximately 3.4 million acres of exploration acreage that was otherwise set to expire. In addition, approximately 400,000 acres of non-prospective acreage was not renewed in accordance with the applicable concession agreement terms. In connection with the extension, the Company committed to a drilling and seismic acquisition and reprocessing program, which it expects to complete in the normal course of operations.
Current report
•In Uruguay, the Company signed an agreement with Eni S.p.A. as a strategic partner in offshore Block 6. The Company will retain a 60 percent working interest, with Eni funding most of the initial exploration well planned for 2027.
Current report
Second-Quarter 2026 compared to Second-Quarter 2025
Current report
The Company’s worldwide oil production decreased 24.0 Mb/d to 211.3 Mb/d during the second quarter of 2026 from the comparative prior-year period, primarily a result of the sale of non-core assets, natural production decline in the U.S. and North Sea, and operational downtime in the North Sea. Second quarter 2026 net production in Egypt was negatively impacted by higher price realizations and lower cost recovery volumes under the merged concession agreement. These decreases were partially offset by successful drilling activity in the Permian Basin.
Current report
Year-to-Date 2026 compared to Year-to-Date 2025
Current report
Crude Oil Crude oil revenues for the first six months of 2026 totaled $3.5 billion, a $489 million increase from the comparative 2025 period. A 26 percent increase in average realized prices for the 2026 period increased oil revenues by $777 million compared to the prior-year period, while 6 percent lower average daily production decreased oil revenues by $288 million compared to the prior-year period. Crude oil revenues accounted for 87 percent of total oil and gas production revenues and 52 percent of worldwide production for the first six months of 2026. Crude oil prices realized during the first six months of 2026 averaged $87.89 per barrel, compared to $69.72 per barrel in the comparative prior-year period.
Current report
The Company’s worldwide oil production decreased 14.3 Mb/d to 221.6 Mb/d in the first six months of 2026 compared to the prior-year period, primarily a result of the sale of non-core assets and weather shut-ins in the U.S., operational downtime in the North Sea, and natural production decline across all assets. These decreases were partially offset by successful drilling activity in the Permian Basin.
Current report
Natural Gas Natural gas revenues for the first six months of 2026 totaled $198 million, a $219 million decrease from the comparative 2025 period. A 45 percent decrease in average realized prices, driven by periods of negative pricing across the Permian Basin, decreased natural gas revenues for the 2026 period by $189 million compared to the prior-year period, while 13 percent lower average daily production decreased revenues by $30 million compared to the prior-year period. Natural gas revenues accounted for 5 percent of total oil and gas production revenues and 31 percent of worldwide production for the first six months of 2026.
Current report
NGL NGL revenues for the first six months of 2026 totaled $311 million, a $48 million decrease from the comparative 2025 period. An 8 percent lower average daily production decreased NGL revenues for the 2026 period by $28 million compared to the prior-year period, while a 6 percent decrease in average realized prices decreased revenues by $20 million. NGL revenues accounted for 8 percent of total oil and gas production revenues and 17 percent of worldwide production for the first six months of 2026.
Current report
The Company’s worldwide NGL production decreased 6.5 Mb/d to 73.2 Mb/d in the first six months of 2026 compared to the prior-year period, primarily a result of increased volume curtailments in response to negative basis differentials in the Permian Basin and the sale of non-core assets in the U.S. These decreases were partially offset by less ethane rejection in the U.S. compared to the same prior-year period.
Current report
Taxes other than income increased $7 million and decreased $10 million from the second quarter and the first six months of 2025, respectively. The increase in taxes for the second quarter of 2026 was driven by higher severance taxes associated with higher oil and NGL prices in the U.S., partially offset by lower ad valorem taxes. The decrease in taxes for the first six months of 2026 was primarily due to lower ad valorem taxes, partially offset by higher severance taxes driven by higher oil prices in the U.S.
Current report
Exploration expenses increased $15 million and $11 million from the second quarter and the first six months of 2025, respectively, primarily the result of higher dry hole expense in Egypt compared to the same prior-year periods.
Current report
TRS costs increased $1 million and decreased $29 million from the second quarter and the first six months of 2025, respectively. TRS costs in the second quarter of 2026 were primarily related to transaction costs incurred during the quarter. The decrease in TRS costs in the first six months of 2026 was driven by employee separations and other cost-saving initiatives that occurred during the first six months of 2025.
Current report
Treasury Stock Activity, net In the first six months of 2026, the Company repurchased 2.8 million shares at an average price of $35.26 per share and an aggregate purchase price of approximately $100 million, and as of June 30, 2026, the Company had remaining authorization to repurchase 19.0 million shares. 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.
Current report
Indenture Debt Activity On June 29, 2026, APA fully redeemed its privately placed 4.250% Notes due 2030, and Apache fully redeemed its 4.250% Notes due 2030. Noteholders were paid an aggregate $118 million in cash, which comprised outstanding principal amounts, plus accrued and unpaid interest to the redemption date.
Removed paragraphs (5)
Previous report
First-Quarter 2026 compared to First-Quarter 2025
Previous report
The Company’s worldwide oil production decreased 4.5 Mb/d to 232 Mb/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of natural production decline in the U.S. and North Sea, operational downtime, and the sale of non-core assets in the U.S. Also during the first quarter of 2026, the timing of liftings in the North Sea drove an additional 4.4 Mb/d decrease in sales volumes compared to the same prior-year period. These decreases were partially offset by drilling activity in the Permian Basin and improved well performance in the North Sea.
Previous report
Taxes other than income decreased $17 million from the first quarter of 2025, primarily from lower severance taxes driven by decreased production volumes in the U.S. and lower ad valorem taxes compared to the same prior-year period.
Previous report
Exploration expenses decreased $4 million from the first quarter of 2025, primarily the result of lower exploration overhead and geological and geophysical expense in the first quarter of 2026 compared to the same prior-year period.
Previous report
TRS costs decreased $30 million from the first quarter of 2025, primarily associated with employee separations and other cost-saving initiatives that occurred during the first quarter of 2025.
Reworded paragraphs (43)
Previous wording
APA is an independent energy company that owns subsidiaries that explore for, develop, and produce crude oil, natural gas, and natural gas liquids (NGLs). The Company’s business has oil and gas operations in three geographic areas: the U.S., Egypt, and offshore the U.K. in the North Sea (North Sea). APA also has active development, exploration and appraisal operations ongoing in Suriname, as well as exploration interests in Uruguay, Alaska, and other international locations that may, over time, result in reportable discoveries and development opportunities. As a holding company, APA Corporation’s primary assets are its ownership interests in its consolidated subsidiaries.
Current wording
APA is an independent energy company that owns subsidiaries that explore for, develop, and produce crude oil, natural gas, and natural gas liquids (NGLs). The Company’s business has oil and gas exploration, development, appraisal, and/or ongoing operations primarily in four geographic areas: the U.S., Egypt, offshore the U.K. in the North Sea (North Sea), and offshore Suriname. APA also has exploration interests in Uruguay, Alaska, and other international locations that may, over time, result in reportable discoveries and development opportunities. As a holding company, APA Corporation’s primary assets are its ownership interests in its consolidated subsidiaries.
Previous wording
Uncertainties in the global supply chain and financial markets impact oil supply and demand and contribute to commodity price volatility. These uncertainties include the impacts and duration of armed conflicts involving Iran, Russia, Ukraine, Israel, Lebanon, and Gaza, inflation, current and potential tariffs or other trade barriers, global trade policies, and disputes, and actions taken by foreign oil and gas producing nations, including OPEC+. Despite these uncertainties, the Company is focused on its longer-term objectives: (1) to remain committed to providing affordable, reliable, and responsibly produced energy; (2) to deliver top operational performance across safety, environmental responsibility, execution, and risk management measures; (3) to maintain financial discipline by managing costs, protecting the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (4) to build and grow a diverse and balanced high-quality portfolio with scale through acquisitions, exploration, and organic opportunities.
Current wording
Uncertainties in the global supply chain and financial markets impact oil supply and demand and contribute to commodity price volatility. These uncertainties include the impacts and duration of armed conflicts involving the U.S., Iran, Russia, Ukraine, Israel, and other parties in the Middle East, inflation, current and potential tariffs or other trade barriers, global trade policies, and disputes, and actions taken by foreign oil and gas producing nations, including OPEC+. Despite these uncertainties, the Company is focused on its longer-term objectives: (1) to remain committed to providing affordable, reliable, and responsibly produced energy; (2) to deliver top operational performance across safety, environmental responsibility, execution, and risk management measures; (3) to maintain financial discipline by managing costs, protecting the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (4) to build and grow a diverse and balanced high-quality portfolio with scale through acquisitions, exploration, and organic opportunities.
Previous wording
In the first quarter of 2026, the Company continued its cost reduction efforts to drive sustainable cost savings for the long-term. The Company remained focused on reducing overhead costs, improving the capital cost structure for its drilling, completions, and facility investments, and driving efficiencies of day-to-day field operating practices. The Company expects an additional $100 million of annualized savings to be achieved by the end of 2026, adding to the $350 million of annualized savings across G&A, LOE, and capital captured during the prior year.
Current wording
In the second quarter of 2026, the Company continued its cost reduction efforts to drive sustainable cost savings for the long-term. The Company remained focused on reducing overhead costs, improving the capital cost structure for its drilling, completions, and facility investments, and driving efficiencies of day-to-day field operating practices. The Company has raised its expected annualized savings target to $500 million by the end of 2026, an increase of $50 million from its previous guidance.
Previous 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.
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 annually through dividends and share repurchases creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of continued balance sheet strengthening.
Previous wording
•Beginning in the fourth quarter of 2021 and through the end of the first quarter of 2026, the Company has repurchased 98.2 million shares of the Company’s common stock.
Current wording
•Beginning in the fourth quarter of 2021 and through the end of the second quarter of 2026, the Company has repurchased 101.0 million shares of the Company’s common stock. Subsequent to the quarter ended June 30, 2026 through July 31, 2026, the Company repurchased 0.3 million shares, and as of July 31, 2026, the Company had remaining authorization to repurchase up to 18.7 million shares under the Company’s share repurchase programs.
Previous wording
•From year-end 2021 through the date of this filing, the Company has repaid $3.6 billion of long-term debt, including $555 million repaid subsequent to the end of the first quarter of 2026.
Current wording
•From year-end 2021 through the date of this filing, the Company has repaid $3.7 billion of long-term debt.
Previous wording
In the first quarter of 2026, the Company reported net income attributable to common stock of $446 million, or $1.26 per diluted share, compared to net income of $347 million, or $0.96 per diluted share, in the first quarter of 2025. The increase in net income in the first quarter of 2026, compared to the first quarter of 2025, was primarily driven by improved margins on third-party purchased oil and gas activity and lower operating expenses driven by prior year cost savings initiatives.
Current wording
In the second quarter of 2026, the Company reported net income attributable to common stock of $747 million, or $2.11 per diluted share, compared to net income of $603 million, or $1.67 per diluted share, in the second quarter of 2025. In the first six months of 2026, the Company reported net income attributable to common stock of $1.2 billion, or $3.37 per diluted share, compared to net income of $950 million, or $2.62 per diluted share, in the first six months of 2025. The increase in net income in the second quarter and the first six months of 2026, compared to the second quarter and first six months of 2025, was primarily driven by higher oil revenues on stronger crude oil price realizations, improved margins on third-party purchased oil and gas activity and lower operating expenses driven by prior-year cost savings initiatives.
Previous wording
The Company generated $554 million of cash from operating activities during the first three months of 2026, 49 percent lower than the first three months of 2025. APA’s lower operating cash flows for the first three months of 2026 were primarily driven by the collection of outstanding Egypt receivables in the prior year and timing of other working capital items. The Company paid $88 million in dividends to APA common stockholders during the first three months of 2026. The Company also repaid $79 million of long-term debt that matured during the quarter.
Current wording
The Company generated $2.3 billion of cash from operating activities during the first six months of 2026, remaining flat when compared to the first six months of 2025. The Company paid $177 million in dividends to APA common stockholders and repurchased approximately $100 million of Company common stock during the first six months of 2026. The Company also repaid $752 million of long-term debt principal during the first six months of 2026.
Previous wording
•Daily boe production from the Company’s U.S. assets, which decreased 11 percent from the first quarter of 2025, accounted for 60 percent of the Company’s worldwide production during the first quarter of 2026. The Company averaged five drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and one rig in the Delaware Basin in the first quarter of 2026. The Company brought online 19 operated wells during the quarter. The Company’s core Permian Basin development program continues to represent a key growth area for the U.S. assets.
Current wording
•Daily boe production from the Company’s U.S. assets, which decreased 9 percent from the second quarter of 2025, accounted for 64 percent of the Company’s worldwide production during the second quarter of 2026. The Company averaged five drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and one rig in the Delaware Basin in the second quarter of 2026. The Company brought online 47 operated wells during the quarter. The Company’s core Permian Basin development program continues to represent a key area for the U.S. assets.
Previous wording
•APA holds approximately 750,000 MMBtu/d of firm capacity on various pipelines in the Permian Basin. As of March 31, 2026, the Company had open basis swap contracts which purchased Waha and sold NYMEX Henry Hub on approximately one-third of its firm transport capacity for 2026, thereby locking in a significant portion of cash flows associated with its gas marketing activities for the near term. Refer to Note 4—Derivative Instruments and Hedging Activities for further discussion of these basis swap agreements.
Current wording
•APA holds approximately 750,000 MMBtu/d of firm capacity on various pipelines in the Permian Basin. As of June 30, 2026, the Company had open basis swap contracts which purchased Waha and sold NYMEX Henry Hub on approximately one-third of its firm transport capacity for 2026, thereby locking in a significant portion of cash flows associated with its gas trading activities for the near term. Refer to Note 4—Derivative Instruments and Hedging Activities for further discussion of these basis swap agreements.
Previous wording
•In Egypt, the Company averaged 12 drilling rigs and drilled 16 new productive wells during the first quarter of 2026. The Company also averaged 20 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency. First quarter 2026 gross and net production from the Company’s Egypt assets increased 2 percent and 8 percent, respectively, from the first quarter of 2025.
Current wording
•In Egypt, the Company averaged 12 drilling rigs and drilled 11 new productive wells during the second quarter of 2026. The Company also averaged 18 workover rigs as it continues optimizing drilling and workover activity for capital efficiency. Second quarter 2026 gross production from the Company’s Egypt assets increased 2 percent while net production decreased 13 percent from the second quarter of 2025. Second quarter 2026 net production was negatively impacted by higher price realizations and lower cost recovery volumes under the merged concession agreement.
Previous wording
•In Egypt, following the success of the 2025 gas program, the Company expects approximately one-half 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, the Company expects approximately one-half of its rig activities to continue 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 2026 and 2025 were 28,275 boe/d and 36,704 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 2026 and 2025 were 14,877 boe/d and 28,015 boe/d, respectively, and 21,539 boe/d and 32,336 boe/d for the first six months of 2026 and 2025, 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 2026 totaled $1.6 billion, a $44 million increase from the comparative 2025 quarter. A 7 percent increase in average realized prices increased first-quarter 2026 oil revenues by $107 million compared to the first quarter of 2025, while 4 percent lower average daily sales volumes decreased revenues by $63 million. Crude oil accounted for 85 percent of total oil and gas production revenues and 52 percent of worldwide production in the first quarter of 2026.
Current wording
Crude Oil Crude oil revenues for the second quarter of 2026 totaled $1.8 billion, a $445 million increase from the comparative 2025 quarter. A 50 percent increase in average realized prices increased second-quarter 2026 oil revenues by $688 million compared to the second quarter of 2025, while 10 percent lower average daily sales volumes decreased revenues by $243 million. Crude oil accounted for 90 percent of total oil and gas production revenues and 52 percent of worldwide production in the second quarter of 2026. Crude oil prices realized during the second quarter of 2026 averaged $98.24 per barrel, compared to $65.58 per barrel in the comparative prior-year period.
Previous wording
Natural Gas Natural gas revenues for the first quarter of 2026 totaled $157 million, a $76 million decrease from the comparative 2025 quarter. A 25 percent decrease in average realized prices, driven by periods of negative pricing across the Permian Basin, decreased first-quarter 2026 natural gas revenues by $57 million compared to the first quarter of 2025, while 11 percent lower average daily production decreased gas revenues by $19 million. Natural gas accounted for 8 percent of total oil and gas production revenues and 31 percent of worldwide production during the first quarter of 2026.
Current wording
Natural Gas Natural gas revenues for the second quarter of 2026 totaled $41 million, a $143 million decrease from the comparative 2025 quarter. A 74 percent decrease in average realized prices, driven by periods of negative pricing across the Permian Basin, decreased second-quarter 2026 natural gas revenues by $135 million compared to the second quarter of 2025, while 16 percent lower average daily production decreased gas revenues by $8 million. Natural gas accounted for 2 percent of total oil and gas production revenues and 31 percent of worldwide production during the second quarter of 2026.
Previous wording
The Company’s worldwide natural gas production decreased 99.1 MMcf/d to 824.4 MMcf/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments at Alpine High compared with the 2025 period in response to extreme Waha basis differentials, including periods of negative pricing. These curtailments were undertaken to mitigate the economic impact of selling gas into constrained markets at uneconomic or negative prices. Natural gas production was also lower as a result of the sale of non-core assets and operational downtime in the U.S., and natural production decline in the U.S. and North Sea. These decreases were partially offset by drilling activity in Egypt and the Permian Basin, with Egypt also benefitting from higher realized natural gas prices and improved well performance in the North Sea.
Current wording
The Company’s worldwide natural gas production decreased 142.0 MMcf/d to 752.1 MMcf/d during the second quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments at Alpine High compared with the 2025 period in response to extreme Waha basis differentials, including periods of negative pricing. These curtailments were undertaken to mitigate the economic impact of selling gas into constrained markets at uneconomic or negative prices. Natural gas production was also lower as a result of the sale of non-core assets in the U.S., and operational downtime in the North Sea.
Previous wording
NGL NGL revenues for the first quarter of 2026 totaled $141 million, a $65 million decrease from the comparative 2025 quarter. A 27 percent decrease in average realized prices decreased first-quarter 2026 NGL revenues by $56 million compared to the first quarter of 2025, while 7 percent lower average daily production decreased revenues by $9 million. NGLs accounted for 7 percent of total oil and gas production revenues and 17 percent of worldwide production during the first quarter of 2026.
Current wording
NGL NGL revenues for the second quarter of 2026 totaled $170 million, a $17 million increase from the comparative 2025 quarter. A 24 percent increase in average realized prices increased second-quarter 2026 NGL revenues by $36 million compared to the second quarter of 2025, while 9 percent lower average daily production decreased revenues by $19 million. NGLs accounted for 8 percent of total oil and gas production revenues and 17 percent of worldwide production during the second quarter of 2026.
Previous wording
The Company’s worldwide NGL production decreased 5.6 Mb/d to 73.0 Mb/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments and weather shut-ins compared with the 2025 period. NGL production was also lower as a result of the sale of non-core assets and operational downtime in the U.S. and natural production decline in the U.S. and North Sea. These decreases were partially offset by drilling activity in the Permian Basin and improved well performance in the North Sea.
Current wording
The Company’s worldwide NGL production decreased 7.5 Mb/d to 73.3 Mb/d during the second quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments compared with the 2025 period in response to extreme negative price basis differentials in the Permian Basin. NGL production was also lower as a result of the sale of non-core assets in the U.S., and operational downtime in the North Sea.
Previous wording
Purchased oil and gas sales represent volumes attributable to domestic oil and gas purchases that were sold by the Company primarily to fulfill oil and natural gas takeaway obligations and commitments, including deliveries under international LNG price-based contracts. Sales related to purchased volumes totaled $385 million and $597 million during the first quarters of 2026 and 2025, respectively. Purchased oil and gas sales were partially offset by associated purchase costs of $75 million and $474 million during the first quarters of 2026 and 2025, respectively. The higher margin between purchased volume sales compared to costs realized during the first quarter of 2026 was primarily attributable to extreme Permian Basin natural gas price differentials with Houston Ship Channel pricing.
Current wording
Purchased oil and gas sales represent volumes attributable to domestic oil and gas purchases that were sold by the Company primarily to fulfill oil and natural gas takeaway obligations and pipeline commitments, including deliveries under international LNG price-based contracts. Sales related to purchased volumes totaled $336 million and $460 million during the second quarters of 2026 and 2025, respectively, and $721 million and $1.1 billion during the first six months of 2026 and 2025, respectively. Associated purchase costs for the sales volumes resulted in net proceeds received totaling $122 million and $47 million for the second quarter and the first six months of 2026, respectively. Associated purchases costs for sales volumes for the second quarter and the first six months of 2025 were $304 million and $778 million, respectively. The higher margin between purchased volume sales and costs realized during the second quarter and the first six months of 2026 was primarily attributable to extreme Permian Basin natural gas prices, which included periods of negative pricing, compared with Houston Ship Channel pricing.
Previous wording
LOE decreased $45 million from the first quarter of 2025. On a per-unit basis, LOE decreased 5 percent in the first quarter of 2026 when compared to the first quarter of 2025. The decrease in absolute costs was primarily driven by the sale of non-core assets in the Permian Basin and continued cost reduction efforts across all operating areas.
Current wording
LOE decreased $14 million and $59 million from the second quarter and the first six months of 2025, respectively. On a per-unit basis, LOE increased 10 percent and 2 percent in the second quarter and the first six months of 2026, respectively, when compared to the second quarter and the first six months of 2025. The decrease in overall absolute costs was primarily driven by the sale of non-core assets in the Permian Basin, timing of liftings in the North Sea, and continued cost reduction efforts across all operating areas.
Previous wording
GPT costs decreased $13 million from the first quarter of 2025, primarily driven by a decrease in production volumes in the U.S. compared to the same prior-year period.
Current wording
GPT costs decreased $17 million and $30 million from the second quarter and the first six months of 2025, respectively, primarily driven by a decrease in production volumes in the U.S. compared to the same prior-year period.
Previous wording
Purchased Oil and Gas Costs
Current wording
Purchased Oil and Gas Costs (Proceeds)
Previous wording
Purchased oil and gas costs decreased $399 million from the first quarter of 2025, primarily driven by decreased oil and gas volume purchases following the expiration of certain third-party contracts in 2025 and gas volumes purchased at significantly lower prices in the Permian Basin.
Current wording
Purchased oil and gas costs decreased $426 million and $825 million from the second quarter and the first six months of 2025, respectively, primarily driven by gas volumes purchased at significantly lower prices in the Permian Basin, including periods of realized negative prices, and decreased oil and gas volume purchases following the expiration of certain third-party contracts in 2025. Periods of negative gas pricing during 2026 in the Permian Basin resulted in the Company receiving net proceeds totaling $122 million and $47 million during the second quarter and the first six months of 2026, respectively.
Previous wording
G&A expenses increased $17 million from the first quarter of 2025, primarily driven by higher cash-based stock compensation expense resulting from changes in the Company’s stock price during the period, partially offset by impacts from cost-reduction efforts on personnel and other overhead expenses.
Current wording
G&A expenses increased $2 million and $19 million from the second quarter and the first six months of 2025, respectively, primarily driven by higher cash-based stock compensation expense resulting from changes in the Company’s stock price during the periods, partially offset by impacts from cost-reduction efforts on personnel and other overhead expenses.
Previous wording
Total DD&A expenses decreased $90 million from the first quarter of 2025. The Company’s DD&A rate on its oil and gas properties decreased $1.21 per boe from the first quarter of 2025. The decrease in DD&A expense on an absolute basis and on a per boe basis was primarily driven by lower DD&A rates resulting from the sale of non-core assets in the Permian Basin during 2025.
Current wording
Total DD&A expenses decreased $26 million and $116 million from the second quarter and the first six months of 2025, respectively. The Company’s DD&A rate on its oil and gas properties increased $1.11 and decreased $0.05 per boe from the second quarter and the first six months of 2025, respectively. The decrease in DD&A expense on an absolute basis for the second quarter of 2026 was primarily driven by lower production volumes. This decrease was partially offset by higher DD&A rates resulting from negative gas price-related reserve revisions in the U.S. Permian Basin. For the first six months of 2026, the decrease in DD&A absolute expenses and on a per boe basis was primarily due to lower DD&A rates driven by lower production volumes resulting from the sale of non-core assets in the Permian Basin.
Previous wording
Net financing costs increased $114 million from the first quarter of 2025, primarily the result of gains on extinguishment of debt from the Company’s cash tender purchases during the first quarter of 2025, partially offset by a decrease in interest expense from the associated lower long-term debt balance.
Current wording
Net financing costs decreased $8 million and increased $106 million from the second quarter and the first six months of 2025, respectively. The decrease in net financing costs in the second quarter of 2026 was driven by lower interest expense, a result of lower outstanding debt balances compared to the same prior-year period. Higher net financing costs during the first six months of 2026 was the result of gains on extinguishment of debt from the Company’s cash tender purchases during the first six months of 2025, partially offset by a decrease in interest expense from the associated lower long-term debt balance.
Previous wording
The Company’s effective income tax rate for the three months ended March 31, 2026 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations. 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.
Current wording
The Company’s effective income tax rate for the six months ended June 30, 2026 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations. 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.
Previous wording
The Company plans to invest approximately $2.1 billion in upstream capital investment in 2026. The Company is committed to maintaining a safe, steady, and efficient level of activity as part of its planned capital investment program. For the rest of 2026, the Company will continue to budget its capital program at levels to fund activity necessary to offset inherent declines in production and proved oil and natural gas reserves, subject to prevailing commodity prices. Future rig activity levels and drilling targets will be dependent on the success of the Company’s drilling program and its ability to add reserves economically.
Current wording
The Company expects to invest approximately $2.1 billion in upstream capital investment in 2026. The Company is committed to maintaining a safe and efficient level of activity as part of its planned capital investment program. For the rest of 2026, the Company will continue to budget its capital program at levels to fund activity necessary to offset inherent declines in production and proved oil and natural gas reserves, subject to prevailing commodity prices. Future rig activity levels and drilling targets will be dependent on the success of the Company’s drilling program and its ability to add reserves economically.
Previous wording
Net Cash Provided by Operating Activities Operating cash flows are the Company’s primary source of capital and liquidity and are impacted, both in the short term and the long term, by volatile commodity prices. The factors that determine operating cash flows are largely the same as those that affect net earnings, with the exception of non-cash expenses such as DD&A, exploratory dry hole expense, asset impairments, asset retirement obligation accretion, and deferred income tax expense.
Current wording
Net Cash Provided by Operating Activities Operating cash flows are the Company’s principal source of capital and liquidity and are impacted, both in the short term and the long term, by volatile commodity prices. The factors that determine operating cash flows are largely the same as those that affect net earnings, with the exception of non-cash expenses such as DD&A, exploratory dry hole expense, asset impairments, asset retirement obligation accretion, and deferred income tax expense.
Previous wording
Net cash provided by operating activities during the first three months of 2026 totaled $554 million, $542 million lower from the first three months of 2025, primarily due to lower revenues from decreased oil and gas production, lower natural gas prices, collection of outstanding Egypt receivables in 2025, and timing of other working capital items.
Current wording
Net cash provided by operating activities during the first six months of 2026 totaled $2.3 billion, $17 million lower than the first six months of 2025. 2026 benefited from higher oil and gas revenues from higher realized oil prices and higher margins on third-party purchased oil and gas sales. 2025 benefitted from the collection of outstanding Egypt receivables and timing of other working capital items.
Previous wording
Additions to Oil & Gas Property During the first three months of 2026 and 2025, exploration and development cash expenditures were $542 million and $777 million, respectively. The decrease in capital investment compared to the prior-year period is directly related to the Company’s efficiency gains on drilling and completion activities in the Permian Basin and Egypt. The Company operated an average of approximately 17 drilling rigs during the first three months of 2026, compared to an average of approximately 22 drilling rigs during the first three months of 2025.
Current wording
Additions to Oil & Gas Property During the first six months of 2026 and 2025, exploration and development cash expenditures were $1.1 billion and $1.4 billion, respectively. The decrease in capital investment compared to the prior-year period is largely driven by the Company’s efficiency gains on drilling and completion activities in the Permian Basin and Egypt. The Company operated an average of approximately 17 drilling rigs during the first six months of 2026, compared to an average of approximately 21 drilling rigs during the first six months of 2025.
Previous wording
Leasehold and Property Acquisitions During the first three months of 2026 and 2025, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $4 million and $13 million, respectively.
Current wording
Leasehold and Property Acquisitions During the first six months of 2026 and 2025, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $6 million and $20 million, respectively.
Previous wording
Payments on Fixed-Rate Debt During the first three months of 2026, the Company repaid in cash on maturity $79 million of long-term debt due during the quarter, plus accrued and unpaid interest to the maturity date.
Current wording
Payments on Fixed-Rate Debt During the first six months of 2026, the Company repaid in cash $754 million of long-term debt, which comprised outstanding principal amounts and make-whole premiums, plus accrued and unpaid interest.
Previous wording
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
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 2026 and 2025, the Company paid $88 million and $91 million, respectively, for dividends on its common stock.
Current wording
Dividends Paid to APA Common Stockholders During the first six months of 2026 and 2025, the Company paid $177 million and $181 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 2026 and 2025, the Company paid $65 million and $126 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 2026 and 2025, the Company paid $164 million and $217 million, respectively, in cash distributions to Sinopec.
Previous wording
Cash and Cash Equivalents As of March 31, 2026, the Company had $293 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, 2026, the Company had $444 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, 2026, the Company had $4.4 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache and finance lease obligations. As of March 31, 2026, current debt included $2 million of finance lease obligations and $132 million of APA and Apache notes coming due within the next year.
Current wording
Debt As of June 30, 2026, the Company had $3.7 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache and finance lease obligations. As of June 30, 2026, current debt included $2 million of finance lease obligations.
Previous wording
Subsequent Events—Indenture Debt Activity On April 6, 2026, APA and Apache fully redeemed their respective 4.875% Notes due 2027 and 4.375% Notes due 2028. Note holders were paid an aggregate $425 million in cash (comprised of outstanding principal amounts and make-whole premiums), plus accrued and unpaid interest to the redemption date.
Current wording
On April 6, 2026, APA and Apache fully redeemed their respective 4.875% Notes due 2027 and 4.375% Notes due 2028. Noteholders were paid an aggregate $425 million in cash, which comprised outstanding principal amounts and make-whole premiums, plus accrued and unpaid interest to the redemption date.
Previous wording
Indenture Debt Activity On March 15, 2026, APA and Apache repaid in cash on maturity the outstanding $79 million aggregate principal amount of their respective 7.70% Notes due 2026, plus accrued and unpaid interest to the maturity date.
Current wording
On March 15, 2026, APA and Apache repaid in cash on maturity the outstanding $79 million aggregate principal amount of their respective 7.70% Notes due 2026, plus accrued and unpaid interest to the maturity date.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Company’s worldwide natural gas production decreased 120.7 MMcf/d to 788 MMcf/d in the first six months of 2026 compared to the prior-year period, primarily a result of increased volume curtailments at Alpine High in response to extreme Waha basis differentials , including periods of negative pricing. Natural gas production was also lower as a result of the sale of non-core assets in the U.S., and operational downtime in the North Sea.