01—Abstract
Summary
Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
APA Corporation reported first-quarter 2026 results in a press release (Exhibit 99.1) dated May 6, 2026.
Reported net income attributable to common stock was $446 milliona, or $1.26 per diluted share, compared with $347 million, or $0.96 per share, in the first quarter of 2025. Adjusted earnings were $489 million, or $1.38 per diluted share. Reported production averaged 442,000 BOE per day (adjusted production 363,000 BOE per day), with U.S. oil production of 124,000 barrels per day, which the company says exceeded guidance.
The company generated $554 millionb of net cash provided by operating activities, $477 million of free cash flow, and $1.6 billion of adjusted EBITDAX. Balance sheet and cost actions were the other focus. APA repaid $634 million of near-term bond maturities through April 2026, which combined with 2025 deleveraging actions is expected to reduce 2026 interest expense by more than $60 million.
Net debt was $4.12 billionc at March 31, 2026, up from $3.98 billion at December 31, 2025. The company returned $88 million to shareholders through dividends in the quarter and continues to target $450 million of cumulative run-rate cost savings by year-end 2026. For the outlook, APA raised its full-year 2026 U.S. oil production guidance to 122,000 barrels per day and expects 121,000 barrels per day in the second quarter.
Egypt gross gas production is guided to 540 to 550 MMCF per day, with second-quarter output expected to rise to 540 MMCF per day. Upstream capital investment is guided to approximately $2.1 billiond for the year and about $575 million for the second quarter, and LOE guidance of approximately $1.5 billion is unchanged. The company will discuss results on a conference call on May 7, 2026.
02—Key points
Key Highlights
- Net income attributable to common stock of $446 million, or $1.26 per diluted share, versus $347 million, or $0.96 per share, a year earlier; adjusted earnings of $489 million, or $1.38 per diluted share.
- Reported production of 442,000 BOE per day, with U.S. oil production of 124,000 barrels per day, described as exceeding February guidance on Permian efficiency gains and improved uptime.
- Net cash provided by operating activities of $554 million, free cash flow of $477 million, and adjusted EBITDAX of $1.6 billion (adjusted EBITDAX reconciled at $1,562 million).
- Repaid $634 million of near-term bond maturities through April 2026; interest expense expected to be more than $60 million lower in 2026 with prior deleveraging actions.
- Net debt of $4.12 billion at March 31, 2026, compared with $3.98 billion at December 31, 2025.
- Full-year 2026 U.S. oil production outlook raised to 122,000 barrels per day; Egypt gross gas guidance of 540 to 550 MMCF per day reaffirmed; upstream capital investment (approximately $2.1 billion) and LOE (approximately $1.5 billion) guidance unchanged.
- Continued progress toward $450 million of cumulative run-rate cost savings by year-end 2026, and $88 million paid in dividends in the first quarter.
03—Questions
Frequently Asked Questions
How did APA's first-quarter 2026 earnings compare with the prior year?
Net income attributable to common stock was $446 million, or $1.26 per diluted share, compared with $347 million, or $0.96 per share, in the first quarter of 2025. On an adjusted basis, first-quarter 2026 earnings were $489 million, or $1.38 per diluted share, compared with $385 million, or $1.06 per share, a year earlier.
Did APA change its production or capital guidance?
Yes, in part. The company raised its full-year 2026 U.S. oil production outlook to 122,000 barrels per day and expects 121,000 barrels per day in the second quarter. Egypt gross gas guidance of 540 to 550 MMCF per day was reaffirmed, and upstream capital investment (about $2.1 billion) and LOE (about $1.5 billion) guidance remain unchanged.
What is APA doing to reduce its debt and interest costs?
Through April 2026, APA repaid $634 million of near-term bond maturities. Together with deleveraging actions in 2025, the company expects interest expense to be more than $60 million lower in 2026. Net debt was $4.12 billion at March 31, 2026, versus $3.98 billion at December 31, 2025.
How much did APA return to shareholders and what cost-savings targets did it set?
APA returned $88 million to shareholders through dividends in the first quarter of 2026, and it declared $0.25 per common share. The company continues to target $450 million of cumulative run-rate cost savings by year-end 2026 and says it remains committed to its capital returns framework.
When will APA discuss these results with investors?
APA will host a conference call at 10 a.m. Central time on Thursday, May 7, 2026, webcast from its website at www.apacorp.com and investor.apacorp.com. A replay will be available for one year on the Investors page of the company's website.
04—Continue