APA Corporation (APA) SEC Filings & Earnings Calls

Permian Basin Gas Price Dislocation

“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.” · word for word

Production Decline

“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.” · word for word

Geopolitical Instability

“The Company expects commodity prices to continue to be volatile in the near term as a result of geopolitical instability and tensions, including in the Middle East.” · word for word

Exploration and production in Egypt subject to geopolitical and regulatory risks; revised pricing agreement may not sustain.

“Nearly half of Egypt’s gas production is now benefiting from the revised pricing agreement.” · word for word

Pending Savant acquisition and Eni partnership subject to regulatory approvals and closing conditions.

“Closing is expected by year-end 2026, subject to regulatory approval and customary closing conditions.” · word for word

Negative Waha hub prices leading to production curtailment

“APA curtailed approximately 137 MMcf/d of U.S. natural gas production and 12,300 barrels per day of U.S. natural gas liquids production in the second quarter in response to weak or negative Waha hub prices.” · word for word

Negative natural gas pricing in Permian Basin

“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.” · word for word

Geopolitical instability in Egypt and Middle East

“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, a” · word for word

Commodity price volatility

“The Company expects commodity prices to continue to be volatile in the near term as a result of geopolitical instability and tensions, including in the Middle East, macroeconomic uncertainty, current and potential tariffs or trade barriers, supply chain disruptions, and concerns over a potential economic recession.” · word for word

Production guidance raise dependent on Permian efficiency gains; any operational disruption could impact.

“raised full-year U.S. oil production outlook to 122,000 barrels per day, reflecting strong uptime and continued efficiency gains” · word for word

Egypt production subject to PSC impacts and oil price sensitivity.

“In Egypt, adjusted production averaged 71,000 BOE per day, reflecting production sharing contract (PSC) impacts associated with higher oil prices.” · word for word

Negative Waha hub natural gas prices forced production curtailments, indicating weak regional demand and infrastructure constraints

“APA curtailed approximately 88 MMcf/d of U.S. natural gas production and 6,800 barrels per day of U.S. natural gas liquids production in the first quarter in response to weak or negative Waha hub prices” · word for word

Higher-than-expected stock-based compensation due to share price increase adds to G&A expense volatility

“approximately $25 million of higher-than-expected stock-based compensation, reflecting mark-to-market impacts of APA’s share price increase during the quarter” · word for word

Commodity Price Volatility

“Commodity prices remained below recent historical levels, underscoring the importance of disciplined capital allocation, cost efficiency, and financial flexibility.” · word for word

Geopolitical Risk in Egypt

“In Egypt, our updated commercial terms and continued development activity are supporting the long-term potential of that asset base.” · word for word

Suriname Development Execution Risk

“In Suriname, the GranMorgu development remains on track toward first oil in mid-2028, a significant future growth catalyst for APA.” · word for word

North Sea Production Cessation

“the Company expects to cease production at its facilities in the North Sea prior to 2030”

Commodity Price Volatility

“the NYMEX daily settlement price for the prompt month oil contract in 2025 ranged from a high of $80.73 per barrel to a low of $55.44 per barrel” · word for word

Suriname Development Execution Risk

“Delays and differences between estimated and actual timing of critical events and development costs may adversely affect the Company’s large development projects” · word for word

2026 production decline guidance signals lower output from North Sea, US gas, and asset sales

“Total adjusted production expected to be 371,000 BOE per day; a year-over-year decline primarily driven by North Sea, U.S. gas volumes and asset sales” · word for word

Capex reduction of 10% may limit future production growth

“Planned total upstream capital of $2.1 billion, a 10% reduction compared to 2025” · word for word

Weak realized prices and curtailments indicate challenging commodity environment.

“US oil $59.90/bbl, natural gas $0.15/Mcf; curtailed 91 MMcf/d gas and 7,600 bbl/d NGL.”

Elevated transaction and dry hole costs pressure earnings.

“Dry hole costs $20M, transaction costs $36M.”

Succession risk is low as appointment is internal and orderly.

“Internal promotion with long tenure; retirement of predecessor was previously disclosed.”

Commodity price volatility

“The Company expects commodity prices to continue to be volatile in the near term as a result of macroeconomic uncertainty, current and potential tariffs or trade barriers, supply chain disruptions, and concerns over a potential economic recession.” · word for word

UK windfall tax increase

“Finance Act 2025 increased the levy from a 35 percent rate to a 38 percent rate, effective for the period of November 1, 2024 through March 31, 2030.”

Production decline in US

“Daily boe production from the Company’s U.S. assets decreased 7 percent from the third quarter of 2024” · word for word

Net debt still significant at ~$4.0B despite reduction.

“Current net debt balance of roughly $4.0 billion.” · word for word

Forward-looking statements subject to macro and geopolitical uncertainties.

“Standard risk factor language.”