Key Takeaways APA is expected to report Q3 profit of $0.74 per share on $2.04 billion in revenues.Revenues are expected to decline 19.52% year over year, indicating weaker hydrocarbon sales.Total expenses are forecasted to drop 49.2%, with major cost reductions across key segments.APA Corporation (APA) is set to release third-quarter results on Nov. 5. The bottom-line estimate for the to-be-reported quarter is pegged at 74 cents on revenues of $2.04 billion.Let us delve into the factors that might have infl ...

Market Overview - The stock market experienced a strong finish in 2024, driven by optimism around potential tax cuts and a robust M&A environment, but sentiment shifted in early 2025 due to concerns over tariffs, AI spending, and consumer health [2][3] - A remarkable recovery occurred in the second quarter of 2025, with U.S. equities approaching all-time highs, primarily led by large-cap technology and growth stocks, especially those related to AI and semiconductors [3] Fund Performance - Ariel Focus Fund gained +4.75% for the three-month period ending June 30, 2025, outperforming its primary Russell 1000 Value Index, which rose +3.79%, but lagged behind the S&P 500, which jumped +10.94% [4] - Key contributors to the fund's performance included Oracle Corporation, Mosaic Company, and Resideo Technologies, while J.M. Smucker Company, APA Corporation, and Core Laboratories were the largest detractors [4][10][12] Company Insights - Oracle Corporation's shares reached an all-time high of over $245, driven by a potential $30 billion annual cloud contract with OpenAI and a doubling of its backlog, highlighting its strong long-term positioning in AI-driven enterprise software [6] - Mosaic Corporation's stock rose +35.88% due to favorable trade dynamics and a renewed focus on cost discipline, benefiting from increased demand for fertilizers driven by economic growth in developing countries [7][8] - Resideo Technologies rebounded with a +24.63% gain, supported by its leadership in smart home technology, despite challenges from a sluggish U.S. housing market [9] Challenges Faced - J.M. Smucker Company faced a -16.28% decline, primarily due to disappointing results from Hostess Brands, which saw a -14% drop in comparable revenue [10] - APA Corporation and Core Laboratories experienced declines of -11.62% and -23.09%, respectively, amid concerns about the energy sector's future despite ongoing demand for oil and gas [12][13]

智通财经APP获悉，周四，国际油价走强，WTI原油、布伦特原油双双涨超5%。美股石油股集体走 高，阿帕奇石油(APA.US)涨超5.6%，戴文能源(DVN.US)涨超2.9%，康菲石油(COP.US)涨超3%，西方石 油(OXY.US)涨超3.3%。消息面上，美国宣布对俄罗斯石油生产商实施制裁的消息，刺激了油价的上 涨。当地时间22日，美国宣布制裁俄罗斯最大的两家石油企业。有印度炼油厂高管称，美国将俄罗斯两 大石油公司列入黑名单后，将难以再继续与俄罗斯进行石油贸易。 ...

Group 1 - The annual meeting of APA Group Limited is officially opened, indicating a quorum is present [2] - The meeting acknowledges the traditional custodians of the land, the Gadigal people of the Eora Nation, and pays respect to their elders [3] - Security holders can participate in the meeting both in person and online, with options to ask questions and vote on business items [4]

Group 1: OPEC's Demand Forecasts - OPEC maintains global oil demand growth forecasts unchanged for 2025 and 2026, expecting an increase of 1.3 million barrels per day (bpd) in 2023 and 1.4 million bpd in 2024, supported by strong economic activity in major economies [1][4] - Projected global oil demand averages 105.1 million bpd in 2025 and 106.5 million bpd in 2026, with gasoline and jet fuel leading growth [4][5] - OPEC anticipates a modest 50,000 bpd deficit by 2026, a significant revision from a previous forecast of a 700,000 bpd shortfall [4] Group 2: Production Insights - September's average oil output rose by 630,000 bpd to 43.05 million bpd, primarily driven by Saudi Arabia and Russia as OPEC+ unwinds earlier cuts [2] - Non-OPEC production is expected to grow by 800,000 bpd in 2025 and 600,000 bpd in 2026, with Brazil, Canada, and the United States leading the gains [2] Group 3: Investment Opportunities - Investors are encouraged to focus on resilient stocks such as APA Corporation, Civitas Resources, and Devon Energy, which are well-positioned to benefit from tightening balances and resilient demand [3][6] - APA Corporation is noted for its significant drilling success in Suriname and operations in the Permian Basin [7] - Civitas Resources is recognized for strong well returns and a balanced production mix, focusing on the DJ Basin and Permian Basin [8] - Devon Energy has significant long-term growth potential with assets concentrated in key North American basins [9][10]

Industry Overview - The Zacks Oil and Gas - Exploration and Production - United States industry is experiencing tightening margins and soft investor sentiment due to rising global output and easing production cuts by OPEC+ [1] - The industry is characterized by companies focused on the exploration and production of oil and natural gas, with cash flow primarily determined by realized commodity prices [2] - The industry faces exploration risks and is vulnerable to historically volatile energy market prices [2] Key Trends - Oversupply Threat: The global oil market is tilting toward oversupply as OPEC+ relaxes production curbs, increasing the risk of inventory buildup and putting downward pressure on prices [3] - Demand Outlook: Economic uncertainty, high interest rates, and weak industrial activity are dampening oil consumption forecasts, raising risks for exploration and production companies [4] - Natural Gas Support: The natural gas market remains constructive, supported by strong LNG exports and balanced inventories, with futures prices holding above $3 [5] - Transition to Clean Energy: The rise of electric vehicles and cleaner fuels is expected to slow global oil demand growth sharply after 2026, introducing long-term uncertainty for oil prices [6] Industry Performance - The Zacks Oil and Gas - US E&P industry ranks 225 out of 243 Zacks industries, placing it in the bottom 7% [7] - The industry's earnings estimates for 2025 have decreased by 34.1% over the past year, and estimates for 2026 have fallen by 38% [9] - The industry has underperformed the S&P 500 and the broader Zacks Oil – Energy sector, declining by 23.9% over the past year compared to a 0.4% decrease in the sector and an 18% gain in the S&P 500 [11] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 11.06X, significantly lower than the S&P 500's 18.69X but above the sector's 5.14X [14] - Over the past five years, the industry has traded as high as 16.02X and as low as 3.56X, with a median of 6.28X [14] Notable Companies - **Cheniere Energy**: A leading player in LNG exports with a strong growth outlook, currently has a Zacks Rank 1 (Strong Buy) [17][18] - **Coterra Energy**: Focused on natural gas production with a projected earnings growth rate of 30.1% over the next three to five years, holds a Zacks Rank 3 (Hold) [19][20] - **APA Corporation**: Engaged in oil and gas exploration with significant drilling success in Suriname and the Permian Basin, has a market capitalization of approximately $8.8 billion [22][23] - **Magnolia Oil & Gas**: Operates in high-return regions with low breakeven costs, has a market capitalization of about $4.6 billion and a Zacks Rank 3 [25][26]

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the registrant's general filing information, securities status, and contact details [General Filing Details](index=1&type=section&id=General%20Filing%20Details) This section provides the foundational details of the Form 8-K filing, including the registrant's legal name, jurisdiction of incorporation, principal executive offices address, and telephone number - Registrant Name: **APA CORPORATION**[2](index=2&type=chunk) - Date of Report (earliest event reported): **October 8, 2025**[2](index=2&type=chunk) - Jurisdiction of Incorporation: **Delaware**[2](index=2&type=chunk) - Principal Executive Offices: **2000 W Sam Houston Pkwy S, Suite 200, Houston, Texas 77042-3643**[2](index=2&type=chunk) - Registrant's Telephone Number: **(713) 296-6000**[2](index=2&type=chunk) [Securities and Registrant Status](index=1&type=section&id=Securities%20and%20Registrant%20Status) This section outlines the securities registered under Section 12(b) of the Act and confirms the registrant's status regarding emerging growth company provisions | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.625 par value | APA | Nasdaq Global Select Market | - Emerging growth company status: **Not an emerging growth company**[4](index=4&type=chunk) [Report Items](index=2&type=section&id=Report%20Items) This section details the company's financial and operating results and lists accompanying exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) APA Corporation announced supplemental financial and operating results for the fiscal quarter ended September 30, 2025, through a press release issued on October 8, 2025 - Date of press release: **October 8, 2025**[6](index=6&type=chunk) - Information announced: **Supplemental information regarding certain financial and operating results**[6](index=6&type=chunk) - Period covered: **Fiscal quarter ended September 30, 2025**[6](index=6&type=chunk) - Exhibit reference: **Full text of the press release is furnished as Exhibit 99.1**[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, which include the press release detailing financial and operating results and the interactive data file | Exhibit No. | Description | | :---------- | :---------- | | 99.1 | Press Release of APA Corporation dated October 8, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=3&type=section&id=Signatures) This section provides the authorization and signatory details for the Form 8-K filing [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) The report is duly signed on behalf of APA Corporation by Rebecca A. Hoyt, Senior Vice President, Chief Accounting Officer, and Controller, on October 8, 2025 - Signatory: **Rebecca A. Hoyt**[11](index=11&type=chunk) - Title: **Senior Vice President, Chief Accounting Officer, and Controller (Principal Accounting Officer)**[11](index=11&type=chunk) - Date of Signature: **October 8, 2025**[11](index=11&type=chunk)

Core Insights - APA Corporation provided supplemental information regarding its estimated financial and operational results for the third quarter of 2025, indicating that actual results may vary based on various factors [1] Financial Performance - Estimated average realized prices for the third quarter of 2025 are as follows: - Oil in the United States: $66.00 per barrel - NGL in the United States: $20.00 per barrel - Natural Gas in the United States: $0.70 per Mcf - Oil internationally: $68.50 per barrel - NGL internationally: $40.00 per barrel - Natural Gas internationally: $4.20 per Mcf [2] - The net gain on oil and gas purchases and sales (before tax) is estimated at $177 million, which includes the impact of realized gain/loss from commodity derivatives [2] Operational Updates - APA curtailed approximately 20 million cubic feet per day of U.S. natural gas production and 1,400 barrels per day of U.S. natural gas liquids production in response to weak or negative Waha hub prices [5] - The company received substantial payments from the Egyptian General Petroleum Corporation (EGPC), leading to normalized receivables from Egypt [3] Cash Flow and Debt Management - Total distributions to the non-controlling interest partner in Egypt amounted to $173 million during the third quarter, compared to $126 million in the first quarter and $91 million in the second quarter [4] - Despite these distributions reducing free cash flow, net debt and free cash flow were both lower than previously expected due to positive developments in payments from Egypt [4] Shareholder Actions - The estimated weighted-average basic common shares for the third quarter is 357 million, with APA repurchasing 3.1 million shares at an average price of $20.78 per share during the quarter [6] Upcoming Events - APA will host a conference call to discuss its third-quarter 2025 results on November 6 at 10 a.m. Central time, which will be webcast on the company's website [7]

Core Insights - The article emphasizes the importance of quality research in the oil and gas industry for investors seeking reliable income sources [2][3] - It highlights the risk of chasing yield without proper analysis, which can lead to poor investment decisions [2] Group 1: Research and Analysis - Deep dive analysis is fundamental to the platform, covering a wide range of companies from pipelines to renewables to producers [3] - The platform provides actionable research aimed at helping investors outperform benchmarks, with the EIA portfolio achieving this in six out of the past seven years [3] Group 2: Investment Opportunities - The article suggests that while commodity prices and shareholder dividends are rising, investors must be cautious to avoid investing in the wrong firms [2] - A free trial is offered to potential investors, allowing them to access quality research without obligation [3]

Core Insights - The article emphasizes the importance of quality research in the oil and gas industry for investors seeking reliable income sources [2][3] - It highlights the risk of chasing yield without proper analysis, which can lead to poor investment decisions [2] Group 1: Research and Analysis - Deep dive analysis is fundamental to the platform, covering a wide range of companies from pipelines to renewables to producers [3] - The platform provides actionable research aimed at helping investors outperform benchmarks, with the EIA portfolio achieving this in six out of the past seven years [3] Group 2: Investment Opportunities - The article suggests that while commodity prices and shareholder dividends are rising, investors must be cautious to avoid investing in the wrong firms [2] - A free trial is offered to potential investors, allowing them to access quality research without obligation [3]