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APA (APA)
NASDAQ:APA
Earnings Data
Report Date
May 06, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.53Last Year’s EPS
1.06Same Quarter Last Year
Based on 19 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive. Management highlighted substantial operational progress: significant and ahead-of-plan cost reductions, strong free cash flow generation (> $1B in 2025), meaningful reserve growth (+9% y/y) and improved Permian capital efficiency with large economic and technical inventory. They provided disciplined 2026 guidance (total portfolio spend $2.1B, Permian capex ~$1.3B, Egypt capex ~$500M) and clear paths to further savings and balance-sheet improvement (net debt down ~$1.4B in 2025 with a $3B target). Near-term negatives include a Q4 Egypt pipeline disruption, anticipated slight LOE pressure in 2026, higher decommissioning spend and modest production impact from exiting a noncore concession. Trading income is a material positive but subject to market/takeaway dynamics. Overall, the strengths and achievable catalysts (cost leadership, large Permian inventory, gas growth in Egypt, Suriname upside) materially outweigh the near-term operational and market headwinds.Company Guidance
Cost Reductions Achieved Ahead of Plan
Captured over $300 million of savings in 2025 and exited the year at a $350 million controllable-spend run rate (target achieved two years early). Management expects incremental reductions in 2026 and a run rate of $450 million by year-end 2026, with a further $200 million decline in controllable spend expected in 2026.
Strong Free Cash Flow and Capital Returns
Generated more than $1.0 billion of free cash flow in 2025; returned approximately $640 million to shareholders (about 63% of free cash flow). Fourth quarter free cash flow was $425 million, with $154 million returned to shareholders in the quarter.
Material Balance-Sheet Improvement
Net debt ended 2025 just below $4.0 billion, down approximately $1.4 billion versus year-end 2024. Interest expense was roughly $80 million lower versus 2024. Company reiterates long-term net-debt target of $3.0 billion.
Reserves and Replacement Performance
Proved reserves increased approximately 9% year-over-year to surpass 1.0 billion BOE. All-in reserve replacement ratio exceeded 160% for 2025, achieved despite a 13% year-over-year decline in SEC oil prices.
Permian Operational and Cost Efficiency Gains
Permian exceeded oil production guidance every quarter in 2025 on a lower-than-planned capital budget. Drilling & completion efficiencies improved materially: average D&C costs of ~$595 per lateral foot (Midland) and ~$750 per lateral foot (Delaware); management cited wells as low as <$500/ft (Midland) and <$700/ft (Delaware) in late 2025 and referenced ~30% improvement on D&C per foot versus prior periods.
Large, High-Quality Permian Inventory
Characterized ~1,700 operated locations in economic inventory (10%+ ROR threshold) and roughly another ~1,700 locations in technical upside. Company confident it can sustain current oil production for at least the next 10 years; a planned 4-well First Bone Spring appraisal could convert up to ~1 year of drilling activity from technical upside into economic inventory.
Egypt Gas Growth Momentum
Egypt transitioned to a gas-focused campaign under a new pricing framework. Management expects to deliver ~540-550 MMcf/d gross gas in 2026 (up from 501 MMcf/d reported in Q4 after temporary pipeline disruptions were resolved). 2026 Egypt capital plan of approximately $500 million aimed at slight BOE growth and sustained gas growth.
High-Value Trading & Marketing Contribution
Oil and gas trading and marketing remained a significant contributor to cash generation: management expects approximately $650 million of pretax income from trading/marketing in 2026 and nearly $2 billion of cumulative pretax income from 2020–2025.
Progress on Suriname and Exploration
Advancing GranMorgu development in Suriname with ~$230 million allocated in 2026 and partner (Total) execution continuing; first oil targeted mid-2028. Exploration spend of ~$70 million in 2026 (including Alaska prep and a return to Suriname Block 58 late in Q4); Alaska Sockeye discovery supports appraisal plans in early 2027.
APA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
APA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $27.84 | $29.10 | +4.53% |
Nov 05, 2025 | $21.45 | $23.42 | +9.14% |
Aug 06, 2025 | $17.69 | $19.06 | +7.76% |
May 07, 2025 | $14.96 | $15.64 | +4.53% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does APA (APA) report earnings?
APA (APA) is schdueled to report earning on May 06, 2026, After Close (Confirmed).
What is APA (APA) earnings time?
APA (APA) earnings time is at May 06, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is APA EPS forecast?
APA EPS forecast for the fiscal quarter 2026 (Q1) is 0.53.