APA Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 4 raised, 2 lowered, 1 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and diluted EPS reported: Net income attributable to common stock was $698 million, or $2.00 per diluted share. Adjusted earnings were $676 million, or $1.94 per diluted share. Source
• Reported production above guidance: Reported production was about 450,000 BOE per day and adjusted production 381,000 BOE per day, both above guidance. Reported volumes rose 10% from the second quarter. Source
• U.S. oil output above guidance: U.S. oil production averaged 128,000 barrels per day, 4,000 above guidance, on high uptime, earlier turn-ins and new-well performance in the Permian Basin. It was up 4% from the second quarter. Source
• Free cash flow of $699 million: Free cash flow was $699 million for the quarter and $1.91 billion year to date. Source
• Debt repaid, net debt lower: Debt maturities of $451 million were repaid in the quarter, and net debt was $3.2 billion at quarter end, down from $3.3 billion at June 30. Source
• 2027 budget centers on exploration: Exploration and GranMorgu development account for about 60% of the $400 million year-over-year increase in the preliminary 2027 budget. Source

“Our teams are raising the standard for performance, operating more efficiently, and translating those gains into substantial cash flow.”

John J. Christmann IV, APA’s CEO

Guidance

What changed from last quarter

• Guidance raised: Full-year U.S. oil production raised to 124,000 barrels per day from the initial 120,000 to 122,000 range. Source
• Guidance raised: 2026 Permian capital investment raised by $30 million. Source
• Guidance raised: Lease operating expense guidance raised by $25 million to $1,525 million. Source
• Guidance lowered: Full-year abandonment and decommissioning expenditures reduced by $15 million to $285 million. Source
• Guidance lowered: Net debt target lowered to $2 billion from $3 billion. Source
• New guidance: Preliminary 2027 upstream capital budget of $2.5 billion introduced. Source
• Guidance kept: The $500 million run-rate cost savings target was reiterated, not changed. Source

Results and production growth

• Net income and diluted EPS reported: Net income attributable to common stock was $698 million, or $2.00 per diluted share. Adjusted earnings were $676 million, or $1.94 per diluted share. Source
• Reported production above guidance: Reported production was about 450,000 BOE per day and adjusted production 381,000 BOE per day, both above guidance. Reported volumes rose 10% from the second quarter. Source
• Operating cash flow and EBITDAX: Net cash provided by operating activities was $1.38 billion, and adjusted EBITDAX was $1.86 billion for the quarter. Source

Segments and regions

• U.S. oil output above guidance: U.S. oil production averaged 128,000 barrels per day, 4,000 above guidance, on high uptime, earlier turn-ins and new-well performance in the Permian Basin. It was up 4% from the second quarter. Source
• Egypt output flat, gas higher: Egypt gross production was about 206,000 BOE per day, flat with the second quarter. Gross gas rose to 542 million cubic feet per day, above guidance on well performance. Source
• North Sea oil volumes lower: North Sea oil volume was 17,815 barrels per day, 1% above the second quarter and 24% below the third quarter of 2025. Source

“This quarter alone, we generated nearly $700 million in free cash flow, returned more than $500 million to shareholders and reduced total debt by more than $450 million.”

John J. Christmann IV, APA’s CEO

Realized prices and revenue

• Oil realizations by region: Average oil price was $92.02 per barrel in total, $87.37 in the United States and $99.72 in Egypt, against $98.24 total in the second quarter. Source
• Gas realization up from second quarter: Average gas realization rose to $4.34 per Mcf from $4.23 per Mcf in the second quarter, with the United States gas price at $1.22 per Mcf. Source
• Oil revenue up year on year: Oil revenues were $1,934 million for the quarter, against $1,470 million a year earlier. Total revenues were $2,769 million. Source

Costs and stock-based compensation

• G&A includes stock compensation: G&A was $112 million, including $56 million of stock-based compensation, mostly reflecting mark-to-market effects of APA’s share price during the quarter.
• Exploration expense higher: Exploration expense was $51 million, against $22 million a year earlier. Dry hole expense was $22 million, against $4 million a year earlier. Source
• Stock compensation expensed rose: Total stock-settled and cash-settled compensation expensed was $85 million in the quarter, against $51 million a year earlier. Source

“Our Permian and Egypt assets provide a reliable production and cash flow base, while GranMorgu continues to progress toward first oil in mid-2028.”

John J. Christmann IV, APA’s CEO

Cash flow, debt and shareholder returns

• Free cash flow of $699 million: Free cash flow was $699 million for the quarter and $1.91 billion year to date. Source
• Debt repaid, net debt lower: Debt maturities of $451 million were repaid in the quarter, and net debt was $3.2 billion at quarter end, down from $3.3 billion at June 30. Source
• $537 million returned to holders: Returned $537 million through dividends and share repurchases in the quarter. Through October, 4.5 million more shares were bought back at an average $47.32. Source
• Lower interest from debt cut: Total debt is down $2.8 billion since year-end 2024. The company says the resulting interest savings are incremental to its controllable spend reduction program. Source

Strategy and investment

• 2027 budget centers on exploration: Exploration and GranMorgu development account for about 60% of the $400 million year-over-year increase in the preliminary 2027 budget. Source
• Service cost inflation in 2027 plan: The rest of the 2027 budget increase reflects more Permian activity and expected service cost inflation. Source
• Financial advantage from portfolio: Management cites the diversified portfolio, strengthened balance sheet and the Suriname capital carry as a distinct financial advantage. Source
• Capacity for exploration and returns: Management said it has the capacity to advance high-impact exploration, reduce debt further and deliver substantial shareholder returns. Source

Coming up, as management said on 4 November 2026

• GranMorgu first oil mid-2028: GranMorgu is expected to reach first oil in mid-2028, per management's closing commentary. Source

Figures management reported

Risks management discussed

• Operational: Egypt adjusted production came in slightly below guidance because production sharing contract terms respond to higher Brent prices. Source
• External: Management expects service cost inflation to add to the 2027 capital budget increase. Source

Earlier plans management reported on

• Ahead: Adjusted production for the third quarter was 381,000 BOE per day, above guidance. Source
• Delayed: Third-quarter upstream capital ran about $30 million below guidance because GranMorgu spending moved into the fourth quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 results
• Q4 FY2025 results
• Q3 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.