APA Corporation Earnings Call Transcripts
Fiscal Year 2026
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A diversified global portfolio and disciplined capital allocation support strong cash flow, cost leadership, and robust shareholder returns. Exploration in Suriname, Alaska, and Uruguay is set to drive future growth, with Suriname's first oil expected in 2028 and ongoing technical work extending drilling inventory.
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Q2 2026 saw production and free cash flow exceed guidance, driven by cost reductions and operational efficiency in core assets. The company raised its annualized savings target, advanced key projects in Suriname, Alaska, and Uruguay, and remains on track to reach its $3 billion net debt target while returning at least 60% of free cash flow to shareholders.
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The meeting covered board elections, auditor ratification, executive compensation, and a compensation plan amendment, with all proposals approved by shareholders. No additional director nominations were received.
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Q1 2026 saw strong operational and financial results, with nearly $500 million in free cash flow and disciplined cost management. Raised U.S. oil production outlook, maintained capital guidance, and advanced debt reduction, while Suriname and Egypt assets continue to underpin long-term growth.
Fiscal Year 2025
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Delivered over $1 billion in free cash flow for 2025, exceeded cost reduction targets, and returned 63% to shareholders. Maintained strong Permian oil production, grew Egypt gas volumes, and advanced Suriname development, with a disciplined 2026 capital plan and robust inventory outlook.
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Third quarter results exceeded production guidance with lower costs, driving $339 million in free cash flow and $430 million net debt reduction. Cost savings targets were accelerated, and 2026 capital is set to decrease 10% with flexible allocation.
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Exploration is resurging as a strategic priority, with diversified portfolios in super basins and frontier regions positioning companies for future growth. Technological advances and mentorship are key, but a talent gap threatens the art of exploration.
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Q2 2025 saw strong operational and financial results, with production exceeding guidance, net debt reduced by over $850 million, and nearly $1 billion returned to investors. Major efficiency gains, a 2 million acre award in Egypt, and progress in Suriname and Alaska bolster future growth.
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The meeting confirmed a quorum, reelected all board nominees, and approved both the auditor ratification and executive compensation proposals. No new director nominations were received, and all agenda items passed as presented.
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Q1 2025 saw strong operational and financial performance, with significant cost reductions, improved drilling efficiencies, and a $608 million asset sale to reduce debt. Permian and Egypt segments outperformed, and guidance was raised for annualized cost savings and free cash flow resilience.
Fiscal Year 2024
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2024 saw major portfolio transformation, strong free cash flow, and significant cost reduction initiatives. The Permian and Egypt anchor assets delivered above-guidance production, while Suriname advances toward first oil in 2028. Cost savings and capital discipline underpin a positive outlook.
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Q3 results exceeded production guidance with lower costs, despite weaker prices. Asset sales, Callon integration, and Suriname FID strengthen the portfolio, while North Sea exit and new Egypt gas pricing reshape future cash flows. 2025 focus is on sustaining core volumes, reducing costs, and funding growth from free cash flow.
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Q2 2024 saw strong production and financial results, with U.S. oil volumes up 67% and increased synergy estimates from the Callon acquisition. Guidance for U.S. oil production was raised, CapEx is trending lower, and free cash flow is expected to rise in H2 2024.