Core Thesis - The article presents a thesis for buying APA Corporation, focusing on stock valuation, dividend analysis, and technical review of price action, momentum, volume, and relative strength [1] Investment Strategy - The investor aims to build financial assets for retirement, employing both long and short trading strategies, including the use of inverse ETFs to capitalize on market declines [1] Trading Goals - The primary goals include proper execution of trading plans and achieving absolute investing results, with the articles serving as a tool for maintaining focus on developing successful trades [1]

Core Insights - APA stock has achieved a significant technical benchmark with its Relative Strength (RS) Rating increasing to 84, up from 79 the previous day, indicating improved market performance [1][4]. Group 1: Technical Performance - APA's RS Rating upgrade reflects a notable rise in price performance, moving from 74 to 83 recently [2][4]. - The current RS Rating of 84 places APA in the 80-plus percentile, showcasing strong relative strength compared to other stocks [1]. Group 2: Market Context - The upgrade in APA's technical rating comes amid broader market movements, including OPEC's shift to a price-war stance, which has influenced stock performance in the energy sector [4].

Core Viewpoint - Repsol SA is exploring a reverse merger of its upstream unit with potential partners, including U.S. energy producer APA, as reported by Bloomberg News [1] Group 1 - Repsol SA is considering strategic options for its upstream unit [1] - Potential partners for the merger include APA, a U.S. energy producer [1]

Core Points - APA Corporation has announced the promotion of Robert P. Rayphole to vice president, chief accounting officer, and controller, effective November 15, 2025 [1][2] - Rayphole will oversee the company's accounting department, financial reporting, accounting operations, and compliance with U.S. GAAP and SEC requirements [2] - The previous role was held by Rebecca A. Hoyt, who retired after 33 years with the company [2] - Rayphole has been with APA since 2002 and has held various positions, including assistant controller since 2011 [3] - He has a background as an audit manager at Arthur Andersen LLP and holds both bachelor's and master's degrees in accounting from Texas A&M University [3] Company Overview - APA Corporation is involved in the exploration and production of oil and natural gas in the United States, Egypt, and the United Kingdom, as well as offshore Suriname [4] - The company provides operational updates, investor information, and press releases on its website [4]

Core Insights - APA Corporation reported third-quarter 2025 adjusted earnings of 93 cents per share, exceeding the Zacks Consensus Estimate of 74 cents, driven by higher production and lower costs [1][8] - The adjusted profit decreased from $1.00 in the previous year due to lower oil realizations [1] - Revenues for the quarter were $2 billion, down 20.6% year-over-year and slightly below the Zacks Consensus Estimate by 1.3% [1] Production & Selling Prices - Average production of oil and natural gas was 463,815 BOE/d, with 67% being liquids, a slight decrease of 0.8% from the previous year but above expectations of 447,998 BOE/d [4] - U.S. output fell 6.5% year-over-year to 281,145 BOE/d, while international production increased by 9.5% to 182,670 BOE/d [5] - Average realized crude oil price was $67.43 per barrel, down 13.6% from $78.06 a year ago but above the projected $57.10 [6] - Average realized natural gas price rose to $2.25 per thousand cubic feet from $1.43 in the previous year, missing the estimate of $2.06 [6] Costs & Financial Position - Lease operating expenses for Q3 totaled $376 million, down 10.1% from $418 million a year ago [9] - Total operating expenses decreased nearly 48% year-over-year to $1.5 billion, significantly lower than the model estimate [9] - APA generated $1.5 billion in operating cash flow and reported a free cash flow of $339 million, up from $219 million a year ago [10] - As of September 30, APA had approximately $475 million in cash and cash equivalents and $4.3 billion in long-term debt, resulting in a debt-to-capitalization ratio of 41.7% [11] Guidance - APA expects production to average 446,000 BOE/d in Q4 and 461,000 BOE/d for the full year 2025, representing a 1.4% year-over-year increase [12] - Oil volumes are projected to be 230,000 Bbl/d for Q4 and 234,000 Bbl/d for the full year [12] - The company has set its upstream capital expenditure for the year at around $2.34 billion [12]

Core Insights - APA Corp. has returned to profitability in Q3, reporting a net income of $205 million compared to a net loss of $223 million in the same period last year [1][4] - The stock price increased by 9.14% to close at $23.64, ending a three-day losing streak [1] - Total revenues rose by 16.4% to $2.115 billion, driven by strong oil and natural gas production [2] Financial Performance - Reported production was 464,000 barrels of oil equivalent per day (boe/pd), with adjusted production at 387,000 boe/pd, exceeding production guidance [3] - Oil production in the US reached 121,000 barrels per day [3] - The company is on track to achieve $350 million in run-rate savings by year-end, two years ahead of schedule, and anticipates recognizing an additional $50 million to $100 million by the end of 2026 [4] Strategic Focus - The CEO emphasized the company's commitment to operational execution, disciplined cost management, and strategic priorities [4] - The company has exceeded production guidance across all operating areas and strengthened its balance sheet [5]

Financial Performance - The company reported a consolidated revenue of $X billion for the quarter, representing a Y% increase compared to the previous quarter[1] - The gross margin improved to J%, reflecting better cost management and operational efficiencies[8] User Growth - User data showed an increase in active users to Z million, up A% year-over-year[2] Future Outlook - The company expects to achieve a revenue growth of B% for the next fiscal year, driven by new product launches and market expansion[3] - The company has set a performance guidance of I million barrels of oil equivalent (boe) per day for the upcoming quarter[7] Market Expansion - The company plans to expand its market presence in D regions, targeting a market share increase of E%[5] - A recent acquisition of F company is expected to enhance the company's capabilities in G sector, with an anticipated contribution of H million to annual revenue[6] Research and Development - Investment in R&D for new technologies increased by C%, focusing on sustainable energy solutions[4] Strategic Initiatives - The company is actively pursuing strategic partnerships to enhance its supply chain resilience and reduce operational risks[9] - Future capital expenditures are projected to be K billion, focusing on infrastructure and technology upgrades[10] Organizational Structure - References to "APA" and "Apache" indicate the company's consolidated subsidiaries, highlighting the structure of the organization[18]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - For the third quarter, APA Corporation reported consolidated net income of $205 million, or $0.57 per diluted common share, with adjusted net income of $332 million, or $0.93 per share, excluding a $148 million unrealized loss on derivatives [13][14] - The company generated $339 million of free cash flow and returned $154 million to investors through dividends and share buybacks [14][15] - Net debt was reduced by approximately $430 million, resulting in net financing cost savings of $75 million compared to the same period in 2024 [15][16] Business Line Data and Key Metrics Changes - In the Permian, oil production exceeded guidance, while capital investment and operating costs were in line with expectations [5][6] - In Egypt, gross BOEs grew sequentially, supported by a successful gas program, and the company received substantial payments, nearly eliminating past due receivables [6][8] - In the North Sea, operational efficiency and cost management led to higher production and lower costs compared to guidance [7] Market Data and Key Metrics Changes - The company raised its guidance for oil production in the Permian while adjusting gas guidance due to temporary curtailments in the field [8] - In Egypt, production estimates for the fourth quarter were slightly increased, reflecting ongoing momentum from the gas program [8] Company Strategy and Development Direction - APA Corporation is focused on disciplined capital allocation, cost reduction initiatives, and maintaining a strong balance sheet to navigate volatile oil price environments [4][10] - The company aims to realize $300 million in savings this year and reach a run-rate savings target of $350 million by the end of 2025, two years ahead of schedule [9][10] - Preliminary plans for 2026 include maintaining consistent activity levels in Egypt and a flexible approach to capital investment based on oil price movements [10][11] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, characterized by volatility and uncertainty in commodity prices due to geopolitical tensions [4] - Management expressed confidence in the company's ability to perform through cycles and respond quickly to changing market conditions [5] - The company plans to provide formal guidance for 2026 in February, with a focus on free cash flow generation [11] Other Important Information - The company is evaluating multiple capital allocation scenarios in light of recent oil price volatility [10] - The North Sea production is expected to decline by 15%-20% from 2025 into 2026 due to minimal investment in the asset [78] Q&A Session Summary Question: Can you elaborate on the flexibility regarding capital spending in 2026? - Management indicated that they have flexibility to adjust capital spending based on oil price movements, with a focus on maintaining production levels in the Permian and Egypt [23][24] Question: What is the potential cash flow impact from the legacy accelerated cost recovery in Egypt? - The cash flow impact is estimated to be around $60 million for next year, but management believes various factors could offset this decline [26][28] Question: How do you view exploration capital for 2026? - Management expects 2026 to be a light year for exploration, with potential activities in Alaska and Suriname [33][34] Question: What are the dynamics of gas pricing in Egypt? - The new gas pricing arrangement allows for growth in gas production, with pricing equivalent to $75-$80 Brent oil [66][68] Question: What is the outlook for the North Sea production and ARO activity? - Production is expected to decline, but tax benefits from ARO spending will provide some financial relief [78][80]

Forward-looking Statements: Certain statements in this earnings supplement contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, expectations, beliefs, plans, and objectives regarding anticipated financial and operating results, cost reductions, rig counts, asset divestitures, estimated reserves, drilling locations, inventory life, capital expenditure ...