01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
APA Corporation (APA), an independent energy company, reported 2025 net income attributable to common stock of $1.4 billiona, or $3.99 per diluted share, versus $804 million, or $2.27 per diluted share, in 2024.
The prior year included $1.1 billionb of impairments, including $796 million in the North Sea and $315 million in the U.S. Net cash provided by operating activities was $4.5 billion, up $925 million from 2024, and total debt ended the year at approximately $4.5 billion, a reduction of about $1.6 billion. Production averaged 464,383 boe/d in 2025, and year-end proved reserves totaled 1,056 MMboe, of which 734 MMboe were proved developed. Realized crude oil prices fell 14 percent to $66.92 per barrel, while realized natural gas prices rose 20 percent to $2.36 per Mcf.
The company's operations are concentrated in the Permian Basin, Egypt, and the U.K. North Sea, with development underway offshore Suriname targeting first production in 2028. The filing states APA plans approximately $2.1 billionc of upstream capital investment in 2026, including a five-rig Permian program, a 12-rig Egypt program, and about $230 million for Suriname development.
Management states it expects to generate significant cash flow at current strip pricing and reiterated its policy of returning 60 percent of free cash flow through dividends and share repurchases. The company also repurchased 12.9 million shares in 2025 for $280 milliond and paid $360 million in dividends. The filing highlights several risks, including a Gulf of America decommissioning contingency for sold properties of $881 million recorded at year-end 2025 (with an estimated range of $0.9 billion to $1.2 billion), the planned cessation of North Sea production prior to 2030 due to UK tax and regulatory changes, and ongoing litigation including a dispute with Santos over the Quadrant divestiture and a Delaware climate lawsuit.
02—Key points
Key Highlights
- Net income attributable to common stock of $1.4 billion ($3.99 per diluted share) in 2025, up from $804 million ($2.27 per diluted share) in 2024
- Net cash provided by operating activities of $4.5 billion in 2025, up $925 million from 2024
- Total debt reduced to approximately $4.5 billion at year-end 2025, a reduction of approximately $1.6 billion from year-end 2024
- Year-end 2025 estimated proved reserves of 1,056 MMboe, with liquids representing approximately 71 percent
- 2026 upstream capital investment planned at approximately $2.1 billion, including a 12-rig program in Egypt and five rigs in the Permian Basin
- Suriname GranMorgu project targets first oil in 2028 with a total estimated investment of $10.5 billion, with APA's share subject to its joint venture agreement with TotalEnergies
- Decommissioning contingency for sold Gulf of America properties recorded at $881 million, with an estimated range of $0.9 billion to $1.2 billion on an undiscounted basis
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Operating Expenses | $6.43B$8.20B | −21.6% |
| Operating Income | $3.09B$2.44B | +26.3% |
| Interest Expense | $323.00M$402.00M | −19.7% |
| Net Income | $1.43B$804.00M | +78.4% |
| EPS (Basic) | $3.99$2.28 | +75.0% |
| EPS (Diluted) | $3.99$2.27 | +75.8% |
| Shares Outstanding (Basic) | 359.00M353.00M | +1.7% |
| Shares Outstanding (Diluted) | 359.00M353.00M | +1.7% |
05—Questions
Frequently Asked Questions
How did APA's profitability and cash generation change in 2025?
Net income attributable to common stock rose to $1.4 billion ($3.99 per diluted share) from $804 million ($2.27 per diluted share) in 2024. The filing attributes the increase primarily to $1.1 billion of impairments recorded in 2024 and lower operating expenses in 2025. Operating cash flow reached $4.5 billion, up $925 million, driven mainly by collection of receivables, lower expenses, and working capital timing.
What is APA's 2026 capital plan?
APA plans to invest approximately $2.1 billion in upstream capital in 2026. This includes a development capital budget of about $1.8 billion for the Permian Basin and Egypt, with the Permian program at five rigs and Egypt at 12 rigs, plus approximately $70 million for exploration in Alaska and Suriname and $230 million for Suriname development. The company states it expects to generate significant cash flow over this budget at current strip pricing.
How is APA returning capital to shareholders?
The company states it believes returning 60 percent of free cash flow through dividends and share repurchases provides a good balance between near-term cash returns and balance sheet strengthening. In 2025 it paid $360 million in dividends and repurchased 12.9 million shares for $280 million, and it had remaining authorization to repurchase 21.9 million shares at year-end. Dividends were declared at $1.00 per share for 2025.
What are the main risks flagged for APA in this filing?
Key risks include commodity price volatility, with 2025 NYMEX prompt-month oil ranging from $55.44 to $80.73 per barrel. The filing also highlights Gulf of America decommissioning obligations on sold properties, UK Energy Profits Levy changes that led the company to plan cessation of North Sea production before 2030, and international risks in Egypt and Suriname. Litigation includes a Santos dispute over the Quadrant divestiture and a Delaware suit over climate-related damages.
What drove the change in APA's production mix and revenue in 2025?
Oil and gas production revenues fell to $7.2 billion from $8.2 billion, with crude oil revenues declining 14 percent on lower realized prices. Natural gas revenues rose to $770 million from $584 million, reflecting a 20 percent increase in realized gas prices and 10 percent higher gas production. Total production averaged 464,383 boe/d, up 2 percent from 2024, with the U.S. contributing 62 percent of production.
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