01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
APA Corporation (APA) reported net income attributable to common stock of $603 milliona, or $1.67 per diluted share, for the second quarter of 2025, compared with $541 million, or $1.46 per diluted share, in the second quarter of 2024.
For the first six months of 2025, net income attributable to common stock was $950 millionb, or $2.62 per diluted share, versus $673 million, or $2.00 per diluted share, a year earlier. Total revenues for the quarter were $2.18 billion, down from $2.54 billion, with the decline driven primarily by lower commodity prices; realized crude oil prices averaged $65.58 per barrel versus $82.28 per barrel in the prior-year quarter. Results were supported by unrealized gains on commodity derivatives and cost reductions.
Cash generation was strong in the first half of 2025, with net cash provided by operating activities of $2.28 billionc, compared with $1.25 billion in the prior-year period, which the filing attributes primarily to the timing of working capital items. The company reduced total debt to $4.55 billion at June 30, 2025 from $6.04 billion at December 31, 2024, and repurchased 7.1 million shares for $150 million in the first six months. Dividends paid to APA common stockholders totaled $181 million in the same period.
The company sold all of its New Mexico Permian assets in the second quarter for total cash consideration of $573 milliond, recognizing a gain of $282 million, with proceeds used primarily for debt reduction. For full-year 2025, APA expects upstream capital investment of approximately $2.3 billion to $2.4 billion, and it plans to reduce its Permian rig count from eight to six. The company also disclosed ongoing litigation and contingent decommissioning liabilities tied to sold Gulf of America properties, with contingent liabilities recorded at $1.0 billion.
02—Key points
Key Highlights
- Second-quarter 2025 net income attributable to common stock of $603 million ($1.67 per diluted share), up from $541 million ($1.46 per diluted share) in the second quarter of 2024.
- Total debt reduced to $4.55 billion at June 30, 2025, from $6.04 billion at December 31, 2024; cash and cash equivalents were $107 million.
- Net cash provided by operating activities was $2.28 billion for the first six months of 2025, versus $1.25 billion a year earlier, primarily due to the timing of working capital items.
- Average realized oil price fell to $65.58 per barrel in the second quarter of 2025 from $82.28 per barrel a year earlier, lowering total revenues to $2.18 billion from $2.54 billion.
- Sold all New Mexico Permian assets for $573 million in total cash consideration, recognizing a $282 million gain, with proceeds used primarily for debt reduction.
- Full-year 2025 upstream capital investment expected at approximately $2.3 billion to $2.4 billion, with Permian rig count planned to fall from eight to six.
- Repurchased 7.1 million shares for $150 million and paid $181 million in dividends to common stockholders in the first six months of 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Operating Expenses | $1.58B$1.86B | −15.0% |
| Operating Income | $739.00M$979.00M | −24.5% |
| Interest Expense | $86.00M$108.00M | −20.4% |
| Net Income | $603.00M$541.00M | +11.5% |
| EPS (Basic) | $1.67$1.46 | +14.4% |
| EPS (Diluted) | $1.67$1.46 | +14.4% |
| Shares Outstanding (Basic) | 361.00M371.00M | −2.7% |
| Shares Outstanding (Diluted) | 361.00M372.00M | −3.0% |
05—Questions
Frequently Asked Questions
How did APA's profitability change in the second quarter of 2025?
Net income attributable to common stock was $603 million, or $1.67 per diluted share, versus $541 million, or $1.46 per diluted share, in the second quarter of 2024. Revenues declined to $2.18 billion from $2.54 billion, mainly on lower commodity prices, but unrealized derivative gains and cost reductions offset the decline.
How much debt did APA reduce, and how?
Total debt was $4.55 billion at June 30, 2025, down from $6.04 billion at December 31, 2024. The filing states that the New Mexico Permian divestiture proceeds were used primarily for debt reduction, and the company also repaid its term loan and made net payments on commercial paper and credit facilities during the first six months.
What are APA's capital spending plans for 2025?
The company expects full-year 2025 upstream capital investment of approximately $2.3 billion to $2.4 billion. This includes a combined development budget of about $2.0 billion for the Permian Basin, Egypt, and the North Sea, plus approximately $275 million for Suriname development and $65 million for other exploration.
What legal and contingent liabilities does APA disclose?
The filing discloses litigation including a Louisiana coastal zone lawsuit, a Delaware climate-related suit, a Kulp Minerals class action, and a dispute with Santos over the Quadrant divestiture. It also records contingent liabilities of $1.0 billion for estimated decommissioning costs on Legacy Gulf of America assets sold to Fieldwood, and the company states that none of the legal actions are expected to be material after accruals.
06—Continue