01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
APA Corporation (APA) reported net income attributable to common stock of $205 milliona, or $0.57 per diluted share, for the third quarter of 2025, compared with a net loss of $223 million, or $0.60 per diluted share, in the third quarter of 2024.
For the first nine months of 2025, net income attributable to common stock was $1,155 millionb, or $3.20 per diluted share, versus $450 million, or $1.29 per diluted share, a year earlier. The filing attributes the year-over-year improvement mainly to $1.1 billion of impairments recorded in the prior-year period, along with lower operating expenses from cost-reduction efforts. Total revenues were $2,115 million for the quarter, down from $2,531 million, and oil, natural gas, and NGL production revenues were $1,804 million, down from $2,058 million.
Cash generation and balance sheet metrics improved. Net cash provided by operating activities was $3,737 millionc for the first nine months of 2025, compared with $2,584 million in the prior-year period. The company exited the quarter with total debt of $4,488 million, down from $6,044 million at December 31, 2024, and cash of $475 million.
During the nine months, APA repurchased 10.2 million shares for $215 milliond and paid $271 million in common dividends. Third-quarter oil realizations averaged $67.43 per barrel, down from $78.06, while natural gas realizations averaged $2.25 per Mcf, up from $1.43. Full-year 2025 upstream capital investment is expected to be $2.3 billion to $2.4 billion.
The filing also highlights several items of note: a $147 million gain on extinguishment of debt in the first nine months of 2025 from Apache indenture debt repurchases, a $285 million gain on divestitures, a $76 million first-quarter deferred tax expense from UK tax law changes, and the resolution of the Louisiana coastal zone litigation and the Apollo Exploration lawsuit. The Company's Egypt operations are subject to a one-third noncontrolling interest held by Sinopec, and the Company has recorded $1.0 billion in contingent liabilities for decommissioning obligations on previously sold Gulf of America properties.
02—Key points
Key Highlights
- Q3 2025 net income attributable to common stock of $205 million ($0.57 per diluted share), versus a net loss of $223 million ($0.60 per diluted share) in Q3 2024
- Nine-month 2025 net income attributable to common stock of $1,155 million ($3.20 per diluted share), up from $450 million ($1.29 per diluted share) in the prior-year period
- Net cash provided by operating activities of $3,737 million for the first nine months of 2025, versus $2,584 million in the same period of 2024
- Total debt reduced to $4,488 million at September 30, 2025, from $6,044 million at December 31, 2024; cash and equivalents were $475 million
- Q3 2025 average realized oil price fell 14% to $67.43 per barrel, while average realized natural gas price rose 57% to $2.25 per Mcf
- Full-year 2025 upstream capital investment expected at $2.3 billion to $2.4 billion; the company repurchased 10.2 million shares for $215 million in the first nine months
- Q3 2025 impairments were zero, compared with $1,111 million in Q3 2024, which was the main driver of the earnings improvement
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Operating Expenses | $1.51B$2.88B | −47.7% |
| Operating Income | $767.00M-$143.00M | +636.4% |
| Interest Expense | $72.00M$109.00M | −33.9% |
| Net Income | $278.00M-$223.00M | +224.7% |
| EPS (Basic) | $0.57$-0.60 | +195.0% |
| EPS (Diluted) | $0.57$-0.60 | +195.0% |
| Shares Outstanding (Basic) | 357.00M370.00M | −3.5% |
| Shares Outstanding (Diluted) | 358.00M370.00M | −3.2% |
05—Questions
Frequently Asked Questions
Why did APA swing from a net loss in Q3 2024 to net income in Q3 2025?
The filing states that the increase in net income was primarily driven by $1.1 billion of impairments recorded in the prior-year period, with no impairments recorded in 2025. Lower operating expenses from focused cost-reduction efforts also contributed.
How much debt does APA carry and how has it changed?
Total debt was $4,488 million at September 30, 2025, down from $6,044 million at December 31, 2024. The company stated it exited the quarter with approximately $4.5 billion of debt, a reduction of $1.6 billion from year-end 2024. Current debt was $213 million.
What drove the change in operating cash flow?
Net cash provided by operating activities totaled $3.7 billion in the first nine months of 2025, $1.1 billion higher than the prior-year period, primarily due to collection of outstanding receivables, lower overall expenses, and timing of other working capital items.
What capital return activity did APA undertake?
In the first nine months of 2025, APA repurchased 10.2 million shares at an average price of $21.08 for about $215 million and paid $271 million in common dividends. As of September 30, 2025, remaining repurchase authorization was 24.6 million shares.
What was the effect of the UK tax law change?
Finance Act 2025, enacted March 20, 2025, increased the Energy (Oil and Gas) Profits Levy rate from 35% to 38%. In the first quarter of 2025, the company recorded a $76 million deferred tax expense from remeasuring its UK deferred tax liability.
06—Continue