APA Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 1 raised, 4 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and diluted EPS reported: Net income attributable to common stock was $446 million, or $1.26 per diluted share, against $347 million, or $0.96, a year earlier. Source
• Adjusted earnings reached $1.38 per share: Adjusted earnings were $489 million, or $1.38 per diluted share, against $385 million, or $1.06, a year earlier. Adjustments excluded items such as unrealized derivative losses. Source
• Operating cash flow and free cash flow: Net cash from operating activities was $554 million, and free cash flow was $477 million. Adjusted EBITDAX was $1.6 billion. Source
• Reported and adjusted production totals: Reported production was 442,000 BOE per day, and adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 363,000 BOE per day. Source
• U.S. oil above February guidance: U.S. oil averaged 124,000 barrels per day, above February guidance, on Permian efficiency gains and improved uptime. Source
• Near-term bonds repaid through April: APA repaid $634 million of near-term bond maturities through April 2026, combined with deleveraging actions taken in 2025. Source
• Cost reduction progress continues: Management reported continued progress on its cost reduction initiatives during the quarter. Source

“Our first-quarter results reflect consistent execution across the portfolio,”

John J. Christmann IV, APA’s chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 U.S. oil production target raised to 122,000 barrels per day. Source
• New guidance: Second-quarter 2026 guidance given for U.S. oil production of 121,000 barrels per day. Source
• Guidance kept: Upstream capital investment and LOE guidance remain unchanged for 2026. Source
• New: APA repaid $634 million of near-term bond maturities through April 2026. Source

Financial results and earnings

• Net income and diluted EPS reported: Net income attributable to common stock was $446 million, or $1.26 per diluted share, against $347 million, or $0.96, a year earlier. Source
• Adjusted earnings reached $1.38 per share: Adjusted earnings were $489 million, or $1.38 per diluted share, against $385 million, or $1.06, a year earlier. Adjustments excluded items such as unrealized derivative losses. Source
• Operating cash flow and free cash flow: Net cash from operating activities was $554 million, and free cash flow was $477 million. Adjusted EBITDAX was $1.6 billion. Source
• Derivative losses rose year on year: Derivative instrument losses, net were $113 million, against $28 million a year earlier. Source

Production and volumes

• Reported and adjusted production totals: Reported production was 442,000 BOE per day, and adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 363,000 BOE per day. Source
• U.S. oil above February guidance: U.S. oil averaged 124,000 barrels per day, above February guidance, on Permian efficiency gains and improved uptime. Source
• Gross gas in line with guidance: Gross gas production averaged 518 MMCF per day, in line with the company's guidance for the quarter. Source

“we continue to structurally lower our cost base, strengthen the balance sheet, and advance our high-quality portfolio”

John J. Christmann IV, APA’s chief executive officer

Regions and products

• U.S. volumes down from prior periods: U.S. BOE per day was 264,720, down 6% from the fourth quarter of 2025 and 11% from a year earlier. Source
• Egypt adjusted volumes under PSC terms: Egypt adjusted production was 71,000 BOE per day, with the company citing production sharing contract impacts tied to higher oil prices. Source
• North Sea volumes lower year on year: North Sea BOE per day was 27,328, down 5% from the fourth quarter of 2025 and 14% from a year earlier. Source
• U.S. gas volume down sharply: U.S. natural gas volume was 413,975 Mcf per day, down 28% from a year earlier and 6% from the fourth quarter of 2025. Source

Prices and realized revenue

• Average realized oil price rose: Average realized oil price was $78.69 per barrel, against $61.03 in the fourth quarter of 2025 and $73.73 a year earlier. Source
• U.S. gas realized price negative: The average U.S. natural gas price was negative $0.32 per Mcf, against $0.15 in the fourth quarter and $2.00 a year earlier. Source
• NGL realized price fell: Average NGL price was $20.96 per barrel, against $28.75 a year earlier. Source
• Oil revenue up, gas revenue down: Oil production revenues were $1,644 million, up from $1,600 million a year earlier. Natural gas revenues fell to $157 million from $233 million. Source

“The company remains committed to its capital returns framework.”

APA Corp., press release

Costs and margins

• Lease operating expenses declined: Lease operating expenses were $362 million, against $407 million a year earlier. Gathering, processing and transmission costs were $91 million, against $104 million. Source
• Capital and LOE below guidance: Upstream capital investment and lease operating expense were below the company's guidance for the quarter. Source
• G&A and separation costs: General and administrative expense was $115 million, against $98 million a year earlier. Transaction, reorganization and separation costs were $7 million, against $37 million. Source
• Current tax provision near prior year: Current income tax provision was $302 million, against $306 million. The deferred income tax line was a $15 million benefit. Source

Capital spending and cash flow

• Upstream capital investment totaled $564 million: Total upstream capital investment was $564 million, against $710 million a year earlier, after the Egypt noncontrolling interest share of $53 million. Source
• Operations cash flow before working capital: Cash flows from operations before changes in operating assets and liabilities were $1,191 million, against $1,051 million a year earlier. Source

Debt and shareholder returns

• Near-term bonds repaid through April: APA repaid $634 million of near-term bond maturities through April 2026, combined with deleveraging actions taken in 2025. Source
• Net debt higher than year-end: Net debt was $4,121 million at March 31, 2026, against $3,977 million at December 31, 2025. Source
• Dividends paid and treasury activity: APA returned $88 million to shareholders through dividends in the quarter. No treasury stock activity was recorded, against $100 million a year earlier. Source
• Noncontrolling interest distributions lower: Distributions to noncontrolling interest were $65 million, against $126 million a year earlier. Source

Cost program and portfolio

• Cost reduction progress continues: Management reported continued progress on its cost reduction initiatives during the quarter. Source
• Management cites lower cost base: The CEO said the company continues to structurally lower its cost base and strengthen the balance sheet. Source

Figures management reported

Risks management discussed

• External: Egypt adjusted production is affected by production sharing contract impacts linked to higher oil prices. Source

Earlier plans management reported on

• Ahead: U.S. oil production exceeded the guidance set in February, on efficiency gains and uptime in the Permian Basin. Source
• Met: Gross gas production was in line with the company's guidance for the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.