01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
APA Corporation (APA) reported first-quarter 2026 net income attributable to common stock of $446 milliona, or $1.26 per diluted share, compared with $347 million, or $0.96 per diluted share, in the first quarter of 2025.
Total revenues were $2.33 billionb versus $2.64 billion a year earlier, and the company attributed the earnings increase primarily to improved margins on third-party purchased oil and gas activity and lower operating expenses from prior cost-savings initiatives. Derivative instrument losses of $113 million partly offset these gains. Cash flow weakened considerably.
Net cash provided by operating activities was $554 millionc, versus $1.10 billion in the prior-year quarter, which the company attributed mainly to the collection of Egypt receivables in 2025 and timing of working capital items. Capital spending on upstream oil and gas property was $542 million, down from $777 million, and the company plans approximately $2.1 billion of upstream capital investment in 2026. Cash and cash equivalents fell to $293 million, and total debt was $4.4 billion at March 31, 2026, with $132 million of notes coming due within the next year.
The filing also highlights production declines and commodity price dynamics. Worldwide production averaged 442,352 boe per day, down 6%d from the prior year, with U.S. natural gas revenues turning negative due to Permian Basin pricing.
Ongoing legal matters include the Quadrant litigation in Australia and a Delaware climate suit, and the company disclosed a $878 million contingent liability tied to Legacy Gulf of America decommissioning obligations. Subsequent to quarter-end, APA redeemed $425 million of notes in April 2026 and repaid $132 million of maturing notes on April 15, 2026.
02—Key points
Key Highlights
- Net income attributable to common stock rose to $446 million ($1.26 per diluted share) from $347 million ($0.96 per diluted share) a year earlier, driven by improved margins on purchased oil and gas activity and lower operating expenses.
- Net cash provided by operating activities fell to $554 million from $1.096 billion, mainly due to the prior-year collection of Egypt receivables and working capital timing.
- Total revenues were $2.327 billion versus $2.636 billion, with purchased oil and gas sales declining to $385 million from $597 million.
- Average realized oil price rose 7% to $78.69 per barrel, while average natural gas price fell 25% to $2.12 per Mcf and NGL price fell 27% to $20.96 per barrel.
- Worldwide production averaged 442,352 boe per day, down 6% from 468,978 boe per day, with U.S. production down 11%.
- Upstream capital spending was $542 million in the quarter versus $777 million; the company plans approximately $2.1 billion of upstream capital investment for 2026.
- Cash and cash equivalents declined to $293 million from $516 million at year-end 2025, and total debt was $4.414 billion at March 31, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Operating Expenses | $1.39B$1.85B | −25.1% |
| Operating Income | $1.05B$865.00M | +22.0% |
| Interest Expense | $70.00M$91.00M | −23.1% |
| Net Income | $446.00M$347.00M | +28.5% |
| EPS (Basic) | $1.26$0.96 | +31.3% |
| EPS (Diluted) | $1.26$0.96 | +31.3% |
| Shares Outstanding (Basic) | 354.00M364.00M | −2.7% |
| Shares Outstanding (Diluted) | 354.00M364.00M | −2.7% |
05—Questions
Frequently Asked Questions
How did APA's earnings change in the first quarter of 2026?
Net income attributable to common stock was $446 million, or $1.26 per diluted share, compared with $347 million, or $0.96 per diluted share, in the first quarter of 2025. The company attributed the increase primarily to improved margins on third-party purchased oil and gas activity and lower operating expenses from prior-year cost-savings initiatives.
Why did operating cash flow decline significantly?
Net cash provided by operating activities was $554 million, compared with $1.096 billion in the first quarter of 2025. The filing attributes the decline primarily to the collection of outstanding Egypt receivables in the prior year, lower revenues from decreased production, lower natural gas prices, and timing of other working capital items.
What is APA's capital spending plan for 2026?
The company plans to invest approximately $2.1 billion in upstream capital investment in 2026. In the first quarter, additions to upstream oil and gas property totaled $542 million, down from $777 million a year earlier, which the company linked to drilling and completion efficiency gains in the Permian Basin and Egypt.
What debt obligations does APA have coming due?
Total debt was $4.4 billion as of March 31, 2026. APA and Apache repaid $79 million of notes on March 15, 2026. After quarter-end, they redeemed 4.875% Notes due 2027 and 4.375% Notes due 2028 for $425 million on April 6, 2026, and repaid $132 million of 7.95% Notes due 2026 on April 15, 2026. The company had no commercial paper outstanding and no borrowings under its committed credit facilities.
What legal and contingent liabilities does APA disclose?
The company disclosed an accrued liability of approximately $27 million for probable legal contingencies. It is pursuing a claim against Quadrant and Santos in Australia and is defending a Delaware suit over global warming damages. It also recorded contingent liabilities of $878 million for potential decommissioning costs on Legacy Gulf of America assets sold by Apache, which the filing says may be required to be performed as GOM Shelf has been unable to fund these obligations.
06—Continue