Core Insights - APA reported a revenue of $2.02 billion for the quarter ended September 2025, reflecting a 20.6% decrease year-over-year and a surprise of -1.28% compared to the Zacks Consensus Estimate of $2.04 billion [1] - The earnings per share (EPS) was $0.93, down from $1.00 in the same quarter last year, but exceeded the consensus EPS estimate of $0.74 by +25.68% [1] Financial Performance Metrics - Total production volume per day was 463.82 KBOE/D, surpassing the seven-analyst average estimate of 447.37 KBOE/D [4] - Average price for natural gas was $2.25, slightly below the estimated $2.32 [4] - Natural gas production volume per day was 932.22 million cubic feet, exceeding the six-analyst average estimate of 859.3 million cubic feet [4] - Average price per barrel for NGL was $20.65, compared to the estimated $20.84 [4] - NGL production volume per day was 74.21 thousand barrels, below the five-analyst average estimate of 77.11 thousand barrels [4] - Oil production volume per day was 234.24 thousand barrels, above the average estimate of 228.17 thousand barrels [4] - Average price per barrel of oil was $67.43, exceeding the five-analyst average estimate of $65.17 [4] Revenue Breakdown - Natural gas revenues were reported at $192 million, slightly above the average estimate of $189.59 million, representing an 86.4% year-over-year increase [4] - Total revenues from oil, natural gas, and natural gas liquids were $1.8 billion, compared to the four-analyst average estimate of $1.66 billion, reflecting a year-over-year decrease of 12.3% [4] - Natural gas liquids revenues were $142 million, below the estimated $147.5 million, marking a -10.1% change year-over-year [4] - Purchased oil and gas sales were $311 million, below the three-analyst average estimate of $378.79 million, representing a year-over-year decline of 34.3% [4] - Oil revenues were $1.47 billion, exceeding the three-analyst average estimate of $1.34 billion, but showing an 18.2% decrease year-over-year [4] Stock Performance - APA shares have returned -11.9% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - APA reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, but down from $1 per share a year ago, indicating an earnings surprise of +25.68% [1] - The company generated revenues of $2.02 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.28% and down from $2.54 billion year-over-year [2] - APA has surpassed consensus EPS estimates three times over the last four quarters, while also topping revenue estimates three times in the same period [2] Earnings Outlook - The sustainability of APA's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $2.05 billion, and for the current fiscal year, it is $3.42 on revenues of $9.18 billion [7] Industry Context - The Oil and Gas - Exploration and Production - United States industry, to which APA belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

[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 Viewpoint - APA Corporation announced its third-quarter 2025 results and will discuss these results in a conference call on November 6, 2025 [1]. Group 1: Company Overview - APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, as well as offshore Suriname and other locations [2]. Group 2: Investor Relations - Results for the third quarter can be accessed on the company's website, and a replay of the conference call will be available for one year on the "Investors" page [1]. - The company provides announcements, operational updates, investor information, and press releases on its website [2]. Group 3: Contact Information - Investor contact number is (281) 302-2286, and media contact number is (713) 296-7276 [3]. - The company's website is www.apacorp.com [3].

Core Insights - Approximately 38% of S&P 500 energy companies have reported Q3 2025 results, indicating noticeable challenges impacting earnings [1] - The Oil-Energy sector is experiencing mixed trends, with crude prices declining due to oversupply while natural gas prices are rising amid tighter supply and geopolitical tensions [2] Commodity Performance - Crude oil prices fell sharply in Q3 2025, with West Texas Intermediate averaging $65.74 per barrel, down 14% from $76.24 in Q3 2024, primarily due to oversupply as OPEC+ nations increased production by over 1.3 million barrels per day [3] - Natural gas prices rose significantly, with the Henry Hub spot price averaging $3.03 per million British thermal units (MMBtu), a 44% increase from $2.11 in Q3 2024, driven by supply disruptions and strong demand [5] Market Dynamics - Trade tensions between the U.S. and China, potential tariffs on imports from India, and softening industrial demand expectations contributed to bearish sentiment in the oil market [4] - Geopolitical disruptions in the Middle East and concerns over tariffs on LNG equipment imports have further increased production costs, supporting the rise in natural gas prices [6] Earnings Outlook - The energy sector's Q3 2025 earnings are projected to decline by 4.9% year over year, despite a sequential improvement from a negative 16.9% in Q2 2025, with revenues expected to grow only 1% [7] - In contrast, the broader S&P 500 is expected to show earnings and revenue growth of 7.3%, highlighting the energy sector's role as a market drag [8] Company-Specific Insights - Key companies to watch include APA Corporation, Permian Resources Corporation, Energy Transfer, and Devon Energy Corporation, all facing challenges in delivering earnings beats [2][10] - APA Corporation's earnings estimate is 74 cents per share, indicating a 26% decrease year over year, with a Zacks Rank of 3 [12][13] - Permian Resources Corporation's earnings estimate is 30 cents per share, reflecting a 14.29% decrease year over year, also with a Zacks Rank of 3 [14] - Energy Transfer's earnings estimate is 33 cents per share, a 3.13% increase year over year, but it holds a Zacks Rank of 4 (Sell) [15] - Devon Energy Corporation's earnings estimate is 93 cents per share, indicating a 15.45% decrease year over year, with a Zacks Rank of 3 [16]

Core Viewpoint - APA Corporation is facing significant challenges due to weak commodity prices and adverse industry conditions, leading to underperformance compared to broader market indices [2][4]. Company Overview - APA Corporation is an independent oil and gas exploration and production company based in Houston, Texas, with a market capitalization of approximately $8 billion [1]. Stock Performance - APA's stock has declined 4.6% over the past 52 weeks, while the S&P 500 Index has increased by 17.4%. Year-to-date, APA shares have dropped 3%, compared to a 16% rise in the S&P 500 [2]. - The company's shares have also underperformed relative to the Energy Select Sector SPDR Fund, which experienced a marginal dip over the past 52 weeks and a 2.1% gain year-to-date [3]. Market Conditions - The decline in APA's stock is attributed to weak commodity prices, with oil prices affected by OPEC+'s potential decision to lift production cuts earlier than anticipated. This situation dampens the outlook for producers like APA [4]. - The oil and gas sector is facing systemic challenges, including sluggish global demand growth, elevated supply levels, and a shift in investor preference towards higher-growth industries [4]. Earnings Outlook - For the fiscal year ending in December 2025, analysts project a 9.3% year-over-year decrease in APA's EPS to $3.42. The company's earnings surprise history is mixed, with two beats and two misses in the last four quarters [5]. - Among 29 analysts covering APA, the consensus rating is a "Hold," with a distribution of ratings including four "Strong Buys," one "Moderate Buy," 21 "Holds," one "Moderate Sell," and two "Strong Sells" [5]. Analyst Ratings and Price Targets - The current analyst configuration is less bullish than three months ago, when there were five "Strong Buy" ratings. UBS recently raised its price target on APA to $25 from $23 while maintaining a "Neutral" rating, citing strong Q3 cash flow and performance in the Permian and Egypt operations, but also highlighting industry risks [6]. - The mean price target for APA is $24.74, indicating an upside potential of 10.4%. The highest price target of $37 suggests a possible increase of 65.2% from current levels [7].

Core Viewpoint - APA Corporation is expected to report third-quarter results on November 5, with an estimated earnings per share of 74 cents and revenues of $2.04 billion, reflecting a decline in revenues compared to the previous year [1][8]. Group 1: Previous Performance - In the last reported quarter, APA exceeded consensus estimates with adjusted earnings per share of 87 cents and revenues of $2.6 billion, surpassing the Zacks Consensus Estimate by over 26% [2]. - The company has had mixed results in the past four quarters, beating estimates in two and missing in the other two, resulting in an average surprise of 24.89% [3]. Group 2: Revenue and Earnings Estimates - The Zacks Consensus Estimate for third-quarter 2025 earnings indicates a 26% decline year over year, while revenues are expected to decrease by 19.52% compared to the previous year [3][8]. - Revenues from APA's core oil, natural gas, and natural gas liquids segment are projected to drop by 26.1% year over year, with a 27.2% decline in revenues from purchased oil and gas sales [5]. Group 3: Cost Management - APA's total expenses are anticipated to reach $1.46 billion in the third quarter, representing a 49.2% decrease from the same period last year [6][8]. - Significant reductions in costs are expected across key segments, including lease operating expenses, which are projected to fall from $418 million to $405 million, and gathering, processing, and transmission costs, expected to decline from $123 million to $95.4 million [6].

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]

Core Viewpoint - International oil prices strengthened significantly, with WTI and Brent crude both rising over 5% due to U.S. sanctions on Russian oil producers [1] Group 1: Oil Price Movement - WTI and Brent crude oil prices both increased by more than 5% [1] - U.S. oil stocks also saw a collective rise, with Apache Corporation (APA.US) up over 5.6%, Devon Energy (DVN.US) up over 2.9%, ConocoPhillips (COP.US) up over 3%, and Occidental Petroleum (OXY.US) up over 3.3% [1] Group 2: Sanctions Impact - The U.S. announced sanctions against Russia's two largest oil companies, which has led to a surge in oil prices [1] - An executive from an Indian refinery indicated that the sanctions would make it difficult to continue oil trade with Russia [1]

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]