APA Corp

Previous 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.

Current wording

Since the end of 2024, the Company has set increasing targets for cost reduction efforts to drive sustainable cost savings for the long-term. This includes 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 anticipates reaching annualized savings of $500 million by the end of 2026 as a result of these efforts.

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 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.

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 at least 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 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.

Current wording

•Beginning in the fourth quarter of 2021 and through the end of the third quarter of 2026, the Company has repurchased 111.5 million shares of the Company’s common stock. Subsequent to the quarter ended September 30, 2026 through October 31, 2026, the Company repurchased approximately 4.5 million shares, and as of October 31, 2026, the Company had remaining authorization to repurchase up to 44.0 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 $3.7 billion of long-term debt.

Current wording

•As of the date of this filing, the Company has reduced its outstanding total debt balance by $4.2 billion since year-end 2021.

Previous 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.

Current wording

In the third quarter of 2026, the Company reported net income attributable to common stock of $698 million, or $2.00 per diluted share, compared to net income of $205 million, or $0.57 per diluted share, in the third quarter of 2025. In the first nine months of 2026, the Company reported net income attributable to common stock of $1.9 billion, or $5.36 per diluted share, compared to net income of $1.2 billion, or $3.20 per diluted share, in the first nine months of 2025. The increase in net income in the third quarter and the first nine months of 2026, compared to the third quarter and first nine 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 cost savings initiatives also contributed to the increase in net income for the first nine months of 2026.

Previous 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.

Current wording

The Company generated $3.6 billion of cash from operating activities and incurred $1.9 billion of oil and gas exploration, development, and property acquisition costs during the first nine months of 2026. The Company paid $264 million in dividends to APA common stockholders and repurchased approximately $550 million of Company common stock during the first nine months of 2026. The Company also repaid $1.2 billion of debt principal during the first nine months of 2026.

Previous 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.

Current wording

•Daily boe production from the Company’s U.S. assets, which increased 5 percent from the third quarter of 2025, accounted for 65 percent of the Company’s worldwide production during the third quarter of 2026. The Company averaged four drilling rigs in the Permian Basin, including three rigs in the Southern Midland Basin and one rig in the Delaware Basin in the third quarter of 2026. The Company brought online 46 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 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.

Current wording

•APA holds approximately 750,000 MMBtu/d of firm capacity on various pipelines in the Permian Basin. As of September 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 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

•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 wording

•The Company expects to close its acquisition of Savant Alaska, LLC during the fourth quarter of 2026, 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.

Previous 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.

Current wording

•In Egypt, the Company averaged 12 drilling rigs and drilled nine new productive wells during the third quarter of 2026. The Company also averaged 18 workover rigs as it continues optimizing drilling and workover activity for capital efficiency. Third-quarter 2026 gross production from the Company’s Egypt assets decreased 2 percent and net production decreased 12 percent from the third quarter of 2025. Third-quarter 2026 net production was negatively impacted by higher price realizations and lower cost recovery volumes under the production sharing contract.

Previous 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.

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 remainder of the year, with realized gas prices increasing through the period.

Previous 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.

Current wording

(4) Average sales volumes from the North Sea for the third quarters of 2026 and 2025 were 28,479 boe/d and 32,832 boe/d, respectively, and 23,878 boe/d and 32,503 boe/d for the first nine 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 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.

Current wording

Crude Oil Crude oil revenues for the third quarter of 2026 totaled $1.9 billion, a $464 million increase from the comparative 2025 quarter. A 36 percent increase in average realized prices increased third-quarter 2026 oil revenues by $536 million compared to the third quarter of 2025, while 6 percent lower average daily sales volumes decreased revenues by $72 million. Crude oil accounted for 82 percent of total oil and gas production revenues and 49 percent of worldwide production in the third quarter of 2026. Crude oil prices realized during the third quarter of 2026 averaged $92.02 per barrel, compared to $67.43 per barrel in the comparative prior-year period.

Previous wording

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 wording

The Company’s worldwide oil production decreased 13.4 Mb/d to 220.9 Mb/d during the third quarter of 2026 from the comparative prior-year period, primarily a result of natural production decline in the North Sea and net production in Egypt which was impacted by higher price realizations and lower cost recovery volumes under the merged concession agreement. These decreases were partially offset by increased drilling efficiency in the Permian Basin and the timing of sales liftings in the North Sea.

Previous 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.

Current wording

Natural Gas Natural gas revenues for the third quarter of 2026 totaled $236 million, a $44 million increase from the comparative 2025 quarter. A 28 percent increase in average realized prices increased third-quarter 2026 natural gas revenues by $52 million compared to the third quarter of 2025, while 4 percent lower average daily production decreased gas revenues by $8 million. Natural gas accounted for 10 percent of total oil and gas production revenues and 33 percent of worldwide production during the third quarter of 2026.

Previous 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.

Current wording

The Company’s worldwide natural gas production decreased 34.4 MMcf/d to 897.8 MMcf/d during the third quarter of 2026 from the comparative prior-year period, primarily a result of natural production decline in the North Sea. This decrease was partially offset by lower volume curtailments at Alpine High compared with the 2025 period, as production resumed from wells previously shut in due to uneconomic or negative pricing associated with extreme Waha basis differentials.

Previous 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.

Current wording

NGL NGL revenues for the third quarter of 2026 totaled $190 million, a $48 million increase from the comparative 2025 quarter. A 27 percent increase in average realized prices increased third-quarter 2026 NGL revenues by $38 million compared to the third quarter of 2025, while 7 percent higher average daily production increased revenues by $10 million. NGLs accounted for 8 percent of total oil and gas production revenues and 18 percent of worldwide production during the third quarter of 2026.

Previous 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.

Current wording

The Company’s worldwide NGL production increased 5.5 Mb/d to 79.8 Mb/d during the third quarter of 2026 from the comparative prior-year period, primarily a result of lower volume curtailments at Alpine High compared with the 2025 period, as production resumed from wells previously shut in due to extreme negative price basis differentials in the Permian Basin. The increase in NGL production was partially offset by natural production decline in the North Sea.

Previous wording

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 wording

Crude Oil Crude oil revenues for the first nine months of 2026 totaled $5.4 billion, a $953 million increase from the comparative 2025 period. A 30 percent increase in average realized prices for the 2026 period increased oil revenues by $1.3 billion compared to the prior-year period, while 6 percent lower average daily production decreased oil revenues by $363 million compared to the prior-year period. Crude oil revenues accounted for 85 percent of total oil and gas production revenues and 51 percent of worldwide production for the first nine months of 2026. Crude oil prices realized during the first nine months of 2026 averaged $89.33 per barrel, compared to $68.94 per barrel in the comparative prior-year period.

Previous wording

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 wording

Natural Gas Natural gas revenues for the first nine months of 2026 totaled $434 million, a $175 million decrease from the comparative 2025 period. A 21 percent decrease in average realized prices decreased natural gas revenues for the 2026 period by $127 million compared to the prior-year period, while 10 percent lower average daily production decreased revenues by $48 million compared to the prior-year period. Natural gas revenues accounted for 7 percent of total oil and gas production revenues and 32 percent of worldwide production for the first nine months of 2026.

Previous wording

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.

Current wording

The Company’s worldwide natural gas production decreased 91.6 MMcf/d to 825.1 MMcf/d in the first nine months of 2026 compared to the same 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 natural production decline in the North Sea and the sale of non-core assets in the U.S.

Previous wording

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 wording

NGL NGL revenues for the first nine months of 2026 totaled $501 million, remaining flat from the comparative 2025 period. A 4 percent increase in average realized prices increased NGL revenues for the 2026 period by $20 million compared to the prior-year period, while 3 percent lower average daily production 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 nine months of 2026.

Previous wording

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 wording

The Company’s worldwide NGL production decreased 2.5 Mb/d to 75.4 Mb/d in the first nine months of 2026 compared to the same prior-year period, primarily a result of increased volume curtailments in response to negative basis differentials in the Permian Basin. NGL production also decreased due to natural production decline in the North Sea and the sale of non-core assets in the U.S.

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 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.

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 $409 million and $311 million during the third quarters of 2026 and 2025, respectively, and $1.1 billion and $1.4 billion during the first nine months of 2026 and 2025, respectively. Purchased oil and gas sales were partially offset by associated purchase costs of $226 million and $184 million for the third quarters of 2026 and 2025, respectively, and $179 million and $962 million during the first nine months of 2026 and 2025, respectively. Purchased oil and gas sales values were higher in the third quarter of 2026, primarily driven by higher natural gas prices. The higher margin between purchased volume sales and costs realized during the first nine 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 $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.

Current wording

LOE increased $42 million and decreased $17 million from the third quarter and the first nine months of 2025, respectively. On a per-unit basis, LOE increased 14 percent and 6 percent in the third quarter and the first nine months of 2026, respectively, when compared to the third quarter and the first nine months of 2025. The increase in overall absolute costs for the third quarter of 2026 was primarily driven by higher operating costs and workover activity compared to the same prior-year period, as well as the timing of liftings in the North Sea. The decrease in absolute costs for the first nine months of 2026 was primarily driven by the sale of non-core assets in the Permian Basin, and continued cost reduction efforts across all operating areas.

Previous wording

Purchased Oil and Gas Costs (Proceeds)

Current wording

Purchased Oil and Gas Costs

Previous 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.

Current wording

Purchased oil and gas costs increased $42 million and decreased $783 million from the third quarter and the first nine months of 2025, respectively. The increase in the third quarter of 2026 was primarily driven by higher natural gas prices compared to the same prior-year period. The decrease in the first nine months of 2026 was 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.

Previous wording

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 wording

Taxes other than income increased $15 million and $5 million from the third quarter and the first nine months of 2025, respectively. The increase in taxes for the third quarter of 2026 was driven by higher severance taxes associated with higher oil and gas prices in the U.S., partially offset by lower ad valorem taxes. The increase in taxes for the first nine months of 2026 was primarily due to higher severance taxes driven by higher oil and NGL prices in the U.S., partially offset by lower ad valorem taxes.

Previous wording

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 wording

Exploration expenses increased $29 million and $40 million from the third quarter and the first nine months of 2025, respectively, primarily the result of higher dry hole expense in Egypt compared to the same prior-year periods.

Previous 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.

Current wording

G&A expenses increased $17 million and $36 million from the third quarter and the first nine months of 2025, respectively, driven by higher cash-based stock compensation expense resulting primarily 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

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 wording

TRS costs decreased $17 million and $46 million from the third quarter and the first nine months of 2025, respectively, primarily driven by employee separations and other cost-saving initiatives that occurred during the third quarter and the first nine months of 2025.

Previous 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.

Current wording

Total DD&A expenses decreased $9 million and $125 million from the third quarter and the first nine months of 2025, respectively. The Company’s DD&A rate on its oil and gas properties increased $0.06 and decreased $0.03 per boe from the third quarter and the first nine months of 2025, respectively. The decrease in DD&A expense on an absolute basis for the third quarter of 2026 was primarily driven by lower production volumes in the North Sea and Egypt. 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 nine months of 2026, the decrease in DD&A absolute expenses was primarily due to lower production volumes and the sale of non-core assets in the Permian Basin. The decrease on a per boe basis was primarily due to lower DD&A rates driven by lower production volumes in the North Sea.

Previous 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.

Current wording

Net financing costs decreased $11 million and increased $95 million from the third quarter and the first nine months of 2025, respectively. The decrease in net financing costs in the third 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 nine months of 2026 was the result of gains on extinguishment of debt from the Company’s cash tender purchases during the first nine 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 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.

Current wording

The Company’s effective income tax rate for the nine months ended September 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 nine months ended September 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 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.

Current wording

The Company anticipates approximately $2.1 billion in upstream capital investment for the full calendar year 2026. The Company is committed to maintaining a safe and efficient level of activity as part of its planned capital investment program. For the remainder 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 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.

Current wording

Net cash provided by operating activities during the first nine months of 2026 totaled $3.6 billion, $101 million lower than the first nine months of 2025. The 2026 period benefited from higher oil and gas revenues from higher realized oil prices and higher margins on third-party purchased oil and gas sales, while 2025 benefited from the collection of outstanding Egypt receivables and timing of other working capital items.

Previous 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.

Current wording

Additions to Oil & Gas Property During the first nine months of 2026 and 2025, exploration and development cash expenditures were $1.8 billion and $2.2 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 nine months of 2026, compared to an average of approximately 20 drilling rigs during the first nine months of 2025.

Previous 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.

Current wording

Leasehold and Property Acquisitions During the first nine months of 2026 and 2025, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $15 million and $20 million, respectively.

Previous 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.

Current wording

Payments on Fixed-Rate Debt During the first nine months of 2026, the Company repaid in cash $1.2 billion of total debt, which comprised outstanding principal amounts and make-whole premiums.

Previous 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.

Current wording

During the first nine 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 $1.0 billion, reflecting principal amounts, discount to par, and associated fees.