How did APA perform in the second quarter of 2025?

APA reported net income attributable to common stock of $603 million, or $1.67 per diluted share. Adjusted earnings, which exclude items affecting comparability, were $313 million, or $0.87 per diluted share. Net cash provided by operating activities was $1.2 billion and adjusted EBITDAX was $1.3 billion.

What changes did APA make to its Permian operations?

APA reduced its Permian rig count from eight to six during the second quarter, citing sustained step-change improvements in drilling efficiency. The company now expects to hold Permian oil production flat at six rigs, down from the six and a half rigs it had cited in May. Permian capital guidance was reduced by $130 million, and original oil production guidance was maintained, adjusted for the New Mexico asset sale that closed in mid-June.

What is APA's balance sheet and shareholder return position?

Net debt fell to $4.44 billion at June 30, 2025 from $5.30 billion at March 31, 2025, supported by proceeds from the New Mexico asset sale and working capital inflows. APA set a long-term net debt target of $3 billion, returned $140 million to shareholders in the quarter through dividends and share repurchases, and stated it remains committed to returning 60% of free cash flow to shareholders.

What cost reduction progress did APA report?

APA now expects to achieve $350 million in run-rate savings in 2026, compared with its prior goal of year-end 2027. The 2025 realized savings target was raised from $130 million to $200 million, and the year-end 2025 run-rate savings target was raised from $225 million to $300 million.

What is the status of the GranMorgu project in Suriname?

Full-year 2025 capital guidance for the 220,000 barrels of oil per day GranMorgu project was raised to $275 million to reflect additional milestone payments expected in the second half of the year. Total project costs remain unchanged, and APA and TotalEnergies remain on track for first oil from Suriname Block 58 in mid-2028.

APA 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.

APA Corporation furnished an 8-K under Item 2.02 attaching its press release (Exhibit 99.1, dated August 6, 2025) announcing second-quarter 2025 financial and operating results.

The company reported net income attributable to common stock of $603 million^a, or $1.67 per diluted share. Excluding items affecting comparability, adjusted earnings were $313 million, or $0.87 per diluted share. Net cash provided by operating activities was $1.2 billion, and adjusted EBITDAX was $1.3 billion.

Reported production was 465,000 BOE per day, and adjusted production excluding Egypt noncontrolling interest and tax barrels was 394,000 BOE per day. Operationally, APA reduced its Permian rig count from eight to six during the quarter and now expects to hold Permian oil production flat at six rigs. The company cut its Permian capital guidance by $130 million^b while maintaining original oil production guidance, adjusted for the New Mexico asset sale that closed in mid-June.

It also accelerated its three-year cost reduction program, now targeting $350 million^c in run-rate savings in 2026 rather than by year-end 2027, and raised its 2025 realized savings target from $130 million to $200 million. Net debt declined by over $850 million to $4.44 billion at June 30, 2025, and APA announced a long-term net debt target of $3 billion. The company returned $140 million to shareholders during the quarter and reaffirmed its commitment to returning 60% of free cash flow.

In Suriname, full-year 2025 capital guidance for the GranMorgu project was raised to $275 million^d for additional milestone payments, with total project costs unchanged and first oil from Block 58 still expected in mid-2028. In Egypt, presidential approval was secured for the direct award of approximately 2 million acres of additional leasehold, which the company said increases its footprint by more than 35%.

02—Key points

Key Highlights

Q2 2025 net income attributable to common stock of $603 million, or $1.67 per diluted share; adjusted earnings of $313 million, or $0.87 per diluted share
Net cash provided by operating activities of $1.2 billion and adjusted EBITDAX of $1.3 billion for the quarter
Reported production of 465,000 BOE per day; adjusted production of 394,000 BOE per day, with Egypt production of 144,000 BOE per day on a reported basis
Permian rig count reduced from eight to six; Permian capital guidance cut by $130 million while original oil production guidance is maintained
Net debt reduced by over $850 million to $4.44 billion; long-term net debt target set at $3 billion; $140 million returned to shareholders in the quarter
Three-year cost reduction target accelerated to $350 million in run-rate savings in 2026 versus year-end 2027; 2025 realized savings target raised to $200 million
Presidential approval secured for direct award of approximately 2 million acres in Egypt; GranMorgu (Suriname) first oil still expected mid-2028

03—Questions

Frequently Asked Questions

How did APA perform in the second quarter of 2025?
APA reported net income attributable to common stock of $603 million, or $1.67 per diluted share. Adjusted earnings, which exclude items affecting comparability, were $313 million, or $0.87 per diluted share. Net cash provided by operating activities was $1.2 billion and adjusted EBITDAX was $1.3 billion.
What changes did APA make to its Permian operations?
APA reduced its Permian rig count from eight to six during the second quarter, citing sustained step-change improvements in drilling efficiency. The company now expects to hold Permian oil production flat at six rigs, down from the six and a half rigs it had cited in May. Permian capital guidance was reduced by $130 million, and original oil production guidance was maintained, adjusted for the New Mexico asset sale that closed in mid-June.
What is APA's balance sheet and shareholder return position?
Net debt fell to $4.44 billion at June 30, 2025 from $5.30 billion at March 31, 2025, supported by proceeds from the New Mexico asset sale and working capital inflows. APA set a long-term net debt target of $3 billion, returned $140 million to shareholders in the quarter through dividends and share repurchases, and stated it remains committed to returning 60% of free cash flow to shareholders.
What cost reduction progress did APA report?
APA now expects to achieve $350 million in run-rate savings in 2026, compared with its prior goal of year-end 2027. The 2025 realized savings target was raised from $130 million to $200 million, and the year-end 2025 run-rate savings target was raised from $225 million to $300 million.
What is the status of the GranMorgu project in Suriname?
Full-year 2025 capital guidance for the 220,000 barrels of oil per day GranMorgu project was raised to $275 million to reflect additional milestone payments expected in the second half of the year. Total project costs remain unchanged, and APA and TotalEnergies remain on track for first oil from Suriname Block 58 in mid-2028.

04—Continue

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