01—Abstract
Summary
Summary of the 10-Q filed November 5, 2026. Cited figures are marked; the original filing is the authoritative source.
APA Corporation reported a strong third quarter and first nine months of 2026, with net income attributable to common stock significantly increasing year-over-year.
This improvement was primarily driven by higher oil revenues due to stronger crude oil price realizations. The company also benefited from improved margins on third-party purchased oil and gas activity and successful cost-saving initiatives, which contributed to a decrease in overall operating expenses for the nine-month period. Operationally, APA saw a 5%a increase in daily production from its U.S. assets, which now account for 65% of its worldwide production.
The company continues to focus on its Permian Basin development program and has secured additional acreage in Alaska. Financially, APA demonstrated strong cash flow from operations and used it to repay a significant amount of debt, while also returning capital to shareholders through dividends and share repurchases. The company's liquidity remains robust, supported by substantial committed borrowing capacity.
02—Key points
Key Highlights
- Net income attributable to common stock for Q3 2026 was $698 million ($2.00/diluted share), a significant increase from $205 million ($0.57/diluted share) in Q3 2025.
- For the first nine months of 2026, net income was $1.9 billion ($5.36/diluted share), up from $1.2 billion ($3.20/diluted share) in the same period of 2025, driven by higher oil revenues and cost efficiencies.
- Total revenues increased to $2.77 billion in Q3 2026 from $2.12 billion in Q3 2025, largely due to a 36% increase in average realized oil prices to $92.02 per barrel.
- U.S. production represented 65% of worldwide production in Q3 2026, with a 5% year-over-year increase in daily production, driven by the Permian Basin development program.
- The company generated $3.6 billion in cash from operating activities for the first nine months of 2026 and used $1.2 billion to repay debt principal.
- APA returned capital to shareholders through $264 million in dividends and approximately $550 million in share repurchases during the first nine months of 2026.
- Total debt was reduced to $3.3 billion as of September 30, 2026, down from $4.5 billion at the end of 2025, reflecting active debt management.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 5, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Operating Expenses | $1.61B$1.51B | +7.0% |
| Operating Income | $1.31B$818.00M | +60.5% |
| Interest Expense | $57.00M$72.00M | −20.8% |
| Net Income | $698.00M$205.00M | +240.5% |
| EPS (Basic) | $2.01$0.57 | +252.6% |
| EPS (Diluted) | $2.00$0.57 | +250.9% |
| Shares Outstanding (Basic) | 348.00M357.00M | −2.5% |
| Shares Outstanding (Diluted) | 350.00M358.00M | −2.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of APA's improved financial performance in Q3 2026?
The primary driver was a significant increase in oil revenues, largely due to a 36% rise in average realized crude oil prices to $92.02 per barrel compared to the prior year's quarter. Improved margins on purchased oil and gas sales and successful cost-saving initiatives also contributed positively.
How is APA managing its capital and returning value to shareholders?
APA generated $3.6 billion in operating cash flow in the first nine months of 2026. The company used these funds for upstream capital investments, significant debt repayment ($1.2 billion), and returning capital to shareholders through dividends ($264 million) and share repurchases ($550 million).
What is APA's strategy regarding its U.S. operations and future growth?
APA's U.S. operations, particularly in the Permian Basin, are a key focus, accounting for 65% of its production. The company is expanding its U.S. presence by acquiring Savant Alaska, LLC, which will add significant acreage and production.
What are the key risks or uncertainties facing APA?
APA's financial performance is highly dependent on volatile commodity prices (oil and natural gas). Other risks include geopolitical instability, supply chain disruptions, and potential environmental liabilities, such as the contingent liabilities related to decommissioning obligations on sold Gulf of America properties.
06—Continue