Group 1: Market Reaction - Major international oil and oil-related stocks such as TotalEnergies, APA, and Torm plc experienced significant rallies, with stock increases of 2.6%, 4.4%, and 3.4% respectively [1] - The oil and gas prices had a "relief rally" due to OPEC+ announcements of supply increases being less than feared [3][4] Group 2: OPEC+ Supply Decisions - OPEC+ announced an increase in oil supply for July by 411,000 barrels per day, which was in line with market expectations [4] - The cartel had previously agreed to voluntary cuts of approximately 2.2 million barrels per day in January 2024 to support oil prices, but plans to phase out these cuts gradually [5] Group 3: Geopolitical Factors - Ukraine's recent strike against Russia's bomber fleet raised concerns about potential escalations in the conflict, which could impact Russian oil supply [6][7] - Russia is the third-largest oil producer, supplying about 12% of global oil, making its supply situation critical in the context of geopolitical tensions [7] Group 4: Strategic Implications for OPEC+ - OPEC+ increasing production despite declining oil prices may be a strategy to address quota violations by member countries and to align with U.S. interests for lower oil prices [10] - Saudi Arabia's potential price war strategy could aim to undermine U.S. shale production, reflecting a competitive approach in the oil market [11] Group 5: Investment Considerations - Oil and gas stocks may serve as a hedge against geopolitical turmoil, particularly in the context of the Russia-Ukraine conflict, while also providing substantial dividends [12]

Core Points - BioVaxys Technology Corp. has formalized an amendment to the Asset Purchase Agreement (APA) for acquiring assets from IMV Inc., originally dated February 11, 2024 [1] - The performance milestone for BioVaxys has been significantly lowered from USD $10 million to USD $2,028,636, with a new deadline of September 30, 2025 [2] - BioVaxys will issue 2,800,000 share purchase warrants to Horizon and 1,200,000 to Powerscourt Investments, with a purchase price of CAD $0.06 per share, valid until May 31, 2028 [3] - The Licensing Earn-Out Payments Term has been extended to August 11, 2033, allowing BioVaxys to share a percentage of net licensing non-sales revenues with Horizon [4][5] Company Overview - BioVaxys Technology Corp. is a clinical-stage biopharmaceutical company focused on developing immunotherapies using its DPX™ immune-educating technology platform for various diseases, including cancers and allergies [6] - The company's clinical pipeline includes maveropepimut-S (MVP-S), currently in Phase IIB development for advanced Relapsed-Refractory Diffuse Large B Cell Lymphoma and platinum-resistant Ovarian Cancer [6] - BioVaxys is also developing other immunotherapies and has licensed its patented delivery platform to Zoetis, Inc. and SpayVac-for-Wildlife, Inc. for animal health applications [6]

Group 1 - APA Corporation announced the promotion of Aneil Kochar to vice president and treasurer, effective May 22, 2025 [1] - Kochar will oversee the Treasury department, focusing on capital structure analysis, financing strategies, risk insurance, banking policies, and cash and liquidity management [1] - The previous treasurer, Ben C. Rodgers, has been promoted to chief financial officer [1] Group 2 - Ben C. Rodgers expressed confidence in Kochar's financial experience in the oil and gas industry, highlighting his role in driving value creation and improving cash management over the past five years [2] - Kochar has been with APA since 2020, initially serving as the director of Finance and then as assistant treasurer since 2022 [3] - Prior to joining APA, Kochar held positions at Chisholm Oil and Gas and EIG Global Energy Partners, and began his career in energy investment banking at Morgan Stanley [3] Group 3 - 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]

Core Points - Apache Corporation has opened applications for its Tree Grant Program for the 2025-2026 planting season, aimed at supporting environmental conservation efforts in the U.S. [1] - The program has donated over 5 million trees since its inception in 2005, partnering with more than 1,000 nonprofit organizations and government agencies [2][7] - The Tree Grant Program focuses on enhancing public green spaces, reforestation, and environmental education, with a commitment to sustainability for future generations [3] Program Details - The program is available to U.S.-based nonprofit organizations and government agencies specifically in Texas and Louisiana [3] - Grant recipients must request a minimum of 50 trees or 1,000 bareroot seedlings and are required to provide ongoing care for the trees [3] - The deadline for applications is July 13, 2025, and grant awards will be announced on October 1, 2025 [5] Recent Achievements - In the last season, Apache donated over 134,000 trees to 52 nonprofit partners, contributing to various conservation efforts including carbon mitigation and wildlife protection [4] - The program has expanded internationally, launching a similar initiative in Scotland [2] About Apache Corporation - Apache Corporation is a subsidiary of APA Corporation, engaged in oil and gas exploration and production with operations in the U.S., Egypt, and the U.K. [6]

Group 1 - The article discusses the author's previous rating of APA Corporation (NASDAQ: APA) as a hold due to concerns about potential further softness in the stock price [1] - The author emphasizes a value investing philosophy, focusing on stocks trading at a discount to their intrinsic value, and highlights the importance of assessing macro trends and sectoral themes [1] - The author's background includes extensive experience in various sectors, including shipping, financial institutions, and technology, which informs their investment research approach [1] Group 2 - The author employs a systematic approach to stock research, utilizing pre-determined screens such as valuation metrics and insider buys to identify attractive investment opportunities [1] - The article does not provide any specific investment recommendations or positions in the companies mentioned, indicating a neutral stance on the stocks discussed [2][3]

Core Viewpoint - APA Corporation reported strong first-quarter 2025 results, with adjusted earnings of $1.06 per share, exceeding expectations and showing improvement from the previous year, driven by higher production and commodity prices [1][2]. Financial Performance - Revenues reached $2.6 billion, a 37.3% increase from the same quarter last year, and surpassed the Zacks Consensus Estimate by 18% [1]. - The company paid out $91 million in dividends during the quarter, reflecting its commitment to shareholder returns [2]. Production & Selling Prices - Average production of oil and natural gas was 468,978 BOE/d, with liquids comprising 67%, marking a 20.5% increase year-over-year [3]. - U.S. output increased by 39.4% year-over-year to 298,319 BOE/d, while international production decreased by 2.5% to 170,659 BOE/d [4]. - Average realized crude oil price was $73.73 per barrel, down 8.6% from the previous year, but above projections [5]. - Average realized natural gas price rose to $2.81 per thousand cubic feet, up from $2.47 in the year-ago period [5]. Costs & Financial Position - Lease operating expenses totaled $407 million, a 20.4% increase from the previous year, contributing to total operating expenses of $1.8 billion, which rose 27% year-over-year [5]. - The company generated $1.1 billion in cash from operating activities and incurred $710 million in upstream capital expenditures [6]. - As of March 31, APA had approximately $67 million in cash and cash equivalents and $5.2 billion in long-term debt, resulting in a debt-to-capitalization ratio of 49.1% [7]. Guidance - APA expects production to average 457,000 BOE/d in Q2 and 463,000 BOE/d for the full year, reflecting a 2% year-over-year increase [8]. - The company has revised its upstream capital expenditure guidance for the year to $2.225-$2.325 billion, down from previous estimates [8].

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 H%, reflecting better cost management and pricing strategies[8]. User Growth - User data showed an increase in active users to Z million, up A% year-over-year[2]. Future Projections - The company projects a revenue growth of B% for the next quarter, driven by new product launches and market expansion strategies[3]. - Future guidance indicates a focus on environmental, social, and governance (ESG) initiatives, aiming for a reduction in carbon emissions by I% over the next five years[10]. Investment and Development - Investment in new technologies and product development increased by C%, focusing on sustainability and efficiency improvements[4]. - The company has set a capital expenditure budget of G billion for the upcoming year, prioritizing infrastructure and technology upgrades[7]. Market Expansion - The company plans to expand its market presence in D regions, targeting a market share increase of E% by the end of the fiscal year[5]. Strategic Acquisitions - A recent acquisition is expected to contribute an additional F million in annual revenue, enhancing the company's competitive position[6]. Risk Management - The company is actively managing risks related to commodity price fluctuations, with hedging strategies in place to mitigate potential impacts[9].

APA (APA) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Company Participants Ben Rodgers - Senior Vice President Finance & TreasurerJohn Christmann - CEOStephen Riney - President & CFOJohn Freeman - Managing DirectorTracey Henderson - Executive VP of ExplorationScott Gruber - Director - Oilfield Services & Equipment ResearchOliver Huang - Director Conference Call Participants Doug Leggett - AnalystArun Jayaram - AnalystBetty Jiang - Senior Equity Research Analyst - US Integrated Oil and E&PsPaul Cheng - An ...

Financial Data and Key Metrics Changes - APA Corporation reported consolidated net income of $347 million or $0.96 per diluted common share for Q1 2025, with adjusted net income of $385 million or $1.06 per share [18] - Free cash flow generated in Q1 was $126 million, with past due balances in Egypt at their lowest since the end of 2022 [19] - The company increased its 2025 savings target from $60 million to $130 million, with an annualized run rate savings target of $225 million by year-end [8][34] Business Line Data and Key Metrics Changes - In the Permian, oil production was within guidance despite a larger-than-expected impact from downtime, with capital expenditures below guidance due to improved drilling performance [5] - In Egypt, gas production exceeded guidance due to successful development programs, with an average realized gas price of $3.19, up from $2.97 in Q4 2024 [19][15] - The North Sea operations saw volumes ahead of guidance, driven by strong operational efficiency [6] Market Data and Key Metrics Changes - The company anticipates gross gas volumes in Egypt to grow to 470 million cubic feet per day in Q2, with expectations to exit the year around 500 million cubic feet per day [14][27] - The average realized gas price is expected to increase to $3.8 in Q4, reflecting a strong performance in the gas market [27] Company Strategy and Development Direction - APA Corporation is focused on cost reduction initiatives, aiming for top quartile operational performance in the Permian and sustainable reductions in controllable spend [8][10] - The company plans to allocate proceeds from the sale of New Mexico Permian properties, which contributed approximately 5,000 barrels per day, primarily towards debt reduction [12][60] - The strategic shift towards gas drilling in Egypt is seen as economically favorable, especially with the new gas price agreement [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production levels in the Permian with reduced rig counts, citing improved drilling efficiencies [13][38] - The company is positioned to respond to oil price fluctuations, with a threshold for significant cuts set at WTI prices dropping into the low fifties [98] - Management highlighted the importance of balancing growth with shareholder returns and strengthening the balance sheet [16] Other Important Information - The company has made significant strides in cost reduction, particularly in the Permian, capturing $800,000 in cost savings per well [21] - A new CFO, Ben Rogers, was appointed, emphasizing a continued focus on managing the cost structure [11] Q&A Session Summary Question: Insights on cost savings achieved - Management confirmed that they are ahead of schedule on cost savings, with expectations to potentially raise targets in the future [32][34] Question: Rig count and production levels in the Permian - Management indicated that they can maintain production flat with 6.5 rigs and are confident in further efficiency gains [38] Question: Clarification on capital delivery pace and original assumptions - Management acknowledged that original targets were aggressive, but cost savings are being realized faster than anticipated [44] Question: Plans for Alaska and funding considerations - Management discussed the quality of reservoir sands in Alaska and the strategy for appraisal and development [46][50] Question: Asset sale motivations and implications - The sale of New Mexico assets was strategic, allowing the company to focus on core Texas operations and debt reduction [56][60] Question: LOE inflation and initiatives - Management noted that while some cost reductions are slower than expected, they are exploring various options to manage LOE costs [62][64] Question: Gas development attractiveness in Egypt - Management confirmed that gas development is currently more attractive than oil, with plans to shift focus accordingly [90][92]

[First-Quarter 2025 Highlights and Outlook](index=1&type=section&id=First-Quarter%202025%20Highlights%20and%20Outlook) APA Corporation reported strong Q1 2025 results, driven by Permian efficiency, reduced capital, and an Alaska discovery [Key Takeaways and First-Quarter Summary](index=1&type=section&id=Key%20Takeaways%20and%20First-Quarter%20Summary) APA Corporation achieved strong Q1 2025 financial and operational results, with significant efficiency gains and a new Alaska discovery Q1 2025 Financial Highlights | Metric | Value (Millions USD) | Per Diluted Share | | :-------------------------------- | :------------------- | :---------------- | | Net Income Attributable to Common Stock | $347 | $0.96 | | Adjusted Earnings | $385 | $1.06 | | Net Cash Provided by Operating Activities | $1,100 | | | Adjusted EBITDAX | $1,500 | | Q1 2025 Production Highlights | Metric | Value (BOE per day) | | :-------------------- | :------------------ | | Reported Production | 469,000 | | Adjusted Production | 398,000 | - Permian oil production was within guidance despite a **1,000 barrel-per-day impact** from third-party and weather-related downtime. Capital expenditure came in **below guidance** due to **significant improvements** in drilling performance, especially in the Permian Basin[5](index=5&type=chunk) - Announced a **second Alaska discovery well** at Sockeye-2, encountering a high-quality reservoir with approximately **25 feet of net oil pay**. Subsequent flow test indicated **significantly higher reservoir quality**[6](index=6&type=chunk)[7](index=7&type=chunk) - Increased 2025 expected savings to **$130 million** from **$60 million** previously, and doubled annualized run-rate savings by year-end to **$225 million**, with capital and overhead savings ahead of schedule[7](index=7&type=chunk) - Streamlined Permian footprint with the announcement of a **$608 million New Mexico divestiture package**[7](index=7&type=chunk) [Cost Initiatives Progress](index=2&type=section&id=Cost%20Initiatives%20Progress) APA Corporation significantly increased its 2025 cost savings targets, primarily through Permian drilling efficiency and overhead reductions - Total realized savings on controllable spend for 2025 are now expected to be **$130 million**, more than **double previous estimates**[8](index=8&type=chunk) - The company targets **$225 million in run-rate savings** by the end of the year, up from a prior range of **$100-$125 million**[8](index=8&type=chunk) - Efficiency gains in Permian drilling are providing the **majority of the uplift in capital savings**, with good progress also on completions and facilities[8](index=8&type=chunk)[9](index=9&type=chunk) - General and administrative (G&A) savings are being achieved through organizational streamlining and reduced discretionary third-party spend[9](index=9&type=chunk) [Second-Quarter and Full-Year Update](index=2&type=section&id=Second-Quarter%20and%20Full-Year%20Update) APA is lowering 2025 capital guidance due to efficiencies, maintaining U.S. oil production, and expecting strong Egypt gas growth - 2025 development capital will be lowered by **$150 million** due to improved efficiencies and reduced activity[9](index=9&type=chunk) - A **$25 million reduction in exploration capital** is also planned, aimed at protecting free cash flow amidst volatile commodity prices[9](index=9&type=chunk) - APA expects to sustainably hold Permian oil volumes flat with **6.5 rigs**, and is reducing activity to **6 rigs** by the end of Q2 2025[10](index=10&type=chunk) - Full-year U.S. oil production guidance range of **125,000 to 127,000 barrels per day** is being maintained for 2025[10](index=10&type=chunk) - In Egypt, gas-focused drilling has increased to **over a third of activity**, with 2025 gas production volumes expected to continue on a **strong growing trajectory**, leading to **higher average realized gas prices** through Q4[11](index=11&type=chunk) [Hedging Update](index=3&type=section&id=Hedging%20Update) APA entered natural gas basis swaps for Permian transport, updating full-year guidance for marketing income - Entered into natural gas basis swap agreements for Q2-Q4 2025 on roughly **two-thirds of firm transport capacity** from Permian to Gulf Coast[12](index=12&type=chunk) - Full-year 2025 guidance for income from third-party oil and gas marketing activities has been updated to **$575 million**, inclusive of these basis hedges[12](index=12&type=chunk) [New Mexico Asset Sale](index=3&type=section&id=New%20Mexico%20Asset%20Sale) APA agreed to sell New Mexico Permian assets for $608 million, focusing its portfolio and reducing debt - Agreed to sell New Mexico Permian assets to Permian Resources Corporation for **$608 million**, prior to customary closing adjustments[13](index=13&type=chunk) - These properties are expected to produce **12.4 Mboe/d (46% oil)** for the full year 2025[13](index=13&type=chunk) - The transaction is expected to close **late in the second quarter**, with proceeds primarily allocated toward **debt reduction**[13](index=13&type=chunk) - The New Mexico package represents **less than 5% of APA's Permian oil production and unconventional acreage**, aligning with the company's focus on core assets[14](index=14&type=chunk) [Closing Remarks](index=3&type=section&id=Closing%20Remarks) The CEO highlighted significant business improvements, emphasizing cost initiatives, free cash flow protection, and long-term strategy - First-quarter performance demonstrates **step-change improvements** across many business aspects[15](index=15&type=chunk) - Strong delivery of cost initiatives enhances the ability to respond decisively to commodity price volatility while **protecting free cash flow**[15](index=15&type=chunk) - Company's focus remains on sustaining the asset base, providing returns to shareholders, strengthening the balance sheet, and creating long-term optionality through exploration[15](index=15&type=chunk) [Consolidated Financial Performance](index=7&type=section&id=Consolidated%20Financial%20Performance) APA Corporation's Q1 2025 consolidated operations showed significant revenue and net income growth year-over-year [Statement of Consolidated Operations](index=7&type=section&id=Statement%20of%20Consolidated%20Operations) APA Corporation's Q1 2025 revenues and net income significantly increased year-over-year, driven by higher production and sales Consolidated Operations Summary (Q1 2025 vs. Q1 2024) | Metric (Millions USD) | Q1 2025 | Q1 2024 | YoY Change (%) | | :---------------------------------- | :------ | :------ | :------------- | | Oil Revenues | $1,600 | $1,432 | 11.7% | | Natural Gas Revenues | $233 | $176 | 32.4% | | Natural Gas Liquids Revenues | $206 | $140 | 47.1% | | Purchased Oil and Gas Sales | $597 | $203 | 194.1% | | **Total Revenues** | **$2,636**| **$1,951**| **35.1%** | | Lease Operating Expenses | $407 | $338 | 20.4% | | Exploration Expense | $30 | $148 | (79.7%) | | Depreciation, Depletion, and Amortization | $636 | $419 | 51.8% | | **Net Income Attributable to Common Stock** | **$347** | **$132** | **162.9%** | | Diluted EPS | $0.96 | $0.44 | 118.2% | [Operational Performance Data](index=8&type=section&id=Operational%20Performance%20Data) APA Corporation's Q1 2025 reported production increased year-over-year, primarily from the U.S., despite a slight QoQ decrease [Production Information](index=8&type=section&id=Production%20Information) APA Corporation's Q1 2025 reported production increased year-over-year, driven by the U.S., with stable Egypt and declining North Sea volumes Total Reported Production (BOE per day) | Period | Total BOE per day | QoQ Change (4Q24 to 1Q25) | YoY Change (1Q24 to 1Q25) | | :----- | :---------------- | :------------------------ | :------------------------ | | 1Q25 | 468,978 | (4)% | 21% | | 4Q24 | 488,308 | | | | 1Q24 | 389,157 | | | Reported Oil Production (Barrels per day) | Region | 1Q25 | 4Q24 | 1Q24 | QoQ Change | YoY Change | | :------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | United States | 125,124 | 147,573 | 83,520 | (15)% | 50% | | Egypt | 86,173 | 89,927 | 86,768 | (4)% | (1)% | | North Sea | 25,206 | 27,683 | 29,795 | (9)% | (15)% | | **Total** | **236,503** | **265,183** | **200,083** | **(11)%** | **18%** | Reported Natural Gas Production (Mcf per day) | Region | 1Q25 | 4Q24 | 1Q24 | QoQ Change | YoY Change | | :------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | United States | 574,736 | 511,587 | 443,737 | 12% | 30% | | Egypt | 317,209 | 300,118 | 290,227 | 6% | 9% | | North Sea | 31,606 | 36,842 | 52,605 | (14)% | (40)% | | **Total** | **923,551** | **848,547** | **786,569** | **9%** | **17%** | [Adjusted Production Information](index=9&type=section&id=Adjusted%20Production%20Information) Adjusted production for Q1 2025 showed a significant year-over-year increase, reflecting strong U.S. growth - Adjusted production excludes production attributable to noncontrolling interest in Egypt and Egypt tax barrels, used by management to evaluate operational trends and performance[28](index=28&type=chunk) Total Adjusted Production (BOE per day) | Period | Total BOE per day | QoQ Change (4Q24 to 1Q25) | YoY Change (1Q24 to 1Q25) | | :----- | :---------------- | :------------------------ | :------------------------ | | 1Q25 | 398,384 | (5)% | 24% | | 4Q24 | 418,347 | | | | 1Q24 | 320,046 | | | Adjusted Oil Production (Barrels per day) | Region | 1Q25 | 4Q24 | 1Q24 | QoQ Change | YoY Change | | :------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | United States | 125,124 | 147,573 | 83,520 | (15)% | 50% | | Egypt | 42,521 | 45,017 | 42,504 | (6)% | —% | | North Sea | 25,206 | 27,683 | 29,795 | (9)% | (15)% | | **Total** | **192,851** | **220,273** | **155,819** | **(12)%** | **24%** | [Price Information](index=10&type=section&id=Price%20Information) Average realized prices for oil, natural gas, and NGLs varied in Q1 2025, with natural gas prices showing a significant QoQ increase Average Oil Price Per Barrel | Region | 1Q25 ($) | 4Q24 ($) | 1Q24 ($) | | :------------ | :------- | :------- | :------- | | United States | 72.45 | 70.38 | 77.37 | | Egypt | 75.06 | 74.54 | 83.18 | | North Sea | 75.30 | 75.42 | 82.81 | | **Total** | **73.73** | **72.42** | **80.65** | Average Natural Gas Price Per Mcf | Region | 1Q25 ($) | 4Q24 ($) | 1Q24 ($) | | :------------ | :------- | :------- | :------- | | United States | 2.00 | 1.01 | 1.42 | | Egypt | 3.19 | 2.97 | 2.93 | | North Sea | 14.96 | 14.40 | 9.23 | | **Total** | **2.81** | **2.20** | **2.47** | Average NGL Price Per Barrel | Region | 1Q25 ($) | 4Q24 ($) | 1Q24 ($) | | :------------ | :------- | :------- | :------- | | United States | 28.12 | 24.52 | 25.38 | | North Sea | 51.39 | 50.65 | 49.37 | | **Total** | **28.75** | **25.08** | **26.20** | [Supplemental Financial Details](index=11&type=section&id=Supplemental%20Financial%20Details) This section provides detailed financial information on exploration expenses, equity compensation, cash flow, and balance sheet [Summary Exploration Expense Information](index=11&type=section&id=Summary%20Exploration%20Expense%20Information) Exploration expenses significantly decreased in Q1 2025, primarily due to reduced dry hole expense Exploration Expense (Millions USD) | Expense Type | 1Q25 ($) | 1Q24 ($) | | :---------------------------- | :------- | :------- | | Unproved leasehold impairments | — | 10 | | Dry hole expense | 11 | 123 | | Geological and geophysical expense | 4 | 1 | | Exploration overhead and other | 15 | 14 | | **Total** | **30** | **148** | [Summary Stock-Settled and Cash-Settled Equity Compensation Information](index=11&type=section&id=Summary%20Stock-Settled%20and%20Cash-Settled%20Equity%20Compensation%20Information) Total equity compensation costs significantly increased in Q1 2025, particularly in G&A Equity Compensation Costs (Millions USD) | Metric | 1Q25 ($) | 4Q24 ($) | 1Q24 ($) | | :---------------------------------------- | :------- | :------- | :------- | | Stock-settled and cash-settled compensation expensed: |||| | Lease operating expenses | 7 | 1 | 4 | | Exploration | 1 | 1 | 1 | | General and administrative | 17 | 11 | 3 | | **Total expensed compensation** | **25** | **13** | **8** | | Stock-settled and cash-settled compensation capitalized | 4 | 1 | 3 | | **Total compensation costs** | **29** | **14** | **11** | [Summary Cash Flow Information](index=12&type=section&id=Summary%20Cash%20Flow%20Information) Net cash from operating activities significantly increased in Q1 2025, but investing and financing activities also rose Cash Flow Summary (Millions USD) | Metric | 1Q25 ($) | 1Q24 ($) | | :---------------------------------------- | :------- | :------- | | Net cash provided by operating activities | 1,096 | 368 | | Additions to upstream oil and gas property | (777) | (467) | | Net cash used in investing activities | (786) | (88) | | Payments on term loan facility | (900) | — | | Payments on fixed-rate debt | (905) | — | | Net cash used in financing activities | (868) | (265) | [Summary Balance Sheet Information](index=12&type=section&id=Summary%20Balance%20Sheet%20Information) As of March 31, 2025, total assets and long-term debt decreased, while shareholders' equity increased Balance Sheet Summary (Millions USD) | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :---------------------------- | :----------------- | :-------------------- | | Cash and cash equivalents | 67 | 625 | | Total assets | 18,531 | 19,390 | | Current debt | 131 | 53 | | Long-term debt | 5,237 | 5,991 | | Total Liabilities and equity | 18,531 | 19,390 | | Common shares outstanding at end of period | 361 | 365 | [Non-GAAP Financial Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Reconciliations) This section reconciles non-GAAP financial measures to GAAP, providing additional insights into performance [Reconciliation of Costs Incurred to Upstream Capital Investment](index=13&type=section&id=Reconciliation%20of%20Costs%20Incurred%20to%20Upstream%20Capital%20Investment) Upstream capital investment, a non-GAAP measure, increased in Q1 2025, excluding certain items - Upstream capital investment is defined as costs incurred for oil and gas activities, adjusted to exclude property and leasehold acquisitions, asset retirement additions and revisions, capitalized interest, and certain exploration expenses, as well as noncontrolling interest in Egypt[40](index=40&type=chunk) Upstream Capital Investment (Millions USD) | Metric | 1Q25 ($) | 1Q24 ($) | | :------------------------------------------------ | :------- | :------- | | Total Costs incurred in oil and gas property | 803 | 717 | | Upstream capital investment including noncontrolling interest - Egypt | 766 | 627 | | Less noncontrolling interest - Egypt | (56) | (69) | | **Total Upstream capital investment** | **710** | **558** | [Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations Before Changes in Operating Assets and Liabilities and Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Cash%20Flows%20from%20Operations%20Before%20Changes%20in%20Operating%20Assets%20and%20Liabilities%20and%20Free%20Cash%20Flow) Non-GAAP cash flow metrics, including free cash flow, showed an increase in Q1 2025, indicating improved cash generation - These non-GAAP measures are used to evaluate the company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt[42](index=42&type=chunk) Cash Flow and Free Cash Flow (Millions USD) | Metric | 1Q25 ($) | 1Q24 ($) | | :------------------------------------------------------------------------ | :------- | :------- | | Net cash provided by operating activities | 1,096 | 368 | | Cash flows from operations before changes in operating assets and liabilities | 1,051 | 827 | | **Free cash flow** | **126** | **99** | [Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX](index=14&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Adjusted%20EBITDAX) Adjusted EBITDAX, a non-GAAP measure, increased year-over-year in Q1 2025, reflecting operational performance - Adjusted EBITDAX is defined as EBITDAX adjusted for certain items, used by management to evaluate the ability to fund capital expenditures, debt services, and operational requirements, and to compare results by eliminating the impact of non-representative items[44](index=44&type=chunk) Adjusted EBITDAX (Millions USD) | Metric | 1Q25 ($) | 4Q24 ($) | 1Q24 ($) | | :---------------------------------------- | :------- | :------- | :------- | | Net cash provided by operating activities | 1,096 | 1,036 | 368 | | **Adjusted EBITDAX (Non-GAAP)** | **1,485**| **1,550**| **1,235**| [Reconciliation of Debt to Net Debt](index=14&type=section&id=Reconciliation%20of%20Debt%20to%20Net%20Debt) Net debt, a non-GAAP measure, decreased from Q4 2024 to Q1 2025, indicating improved financial leverage - Net debt is defined as outstanding debt obligations less cash and cash equivalents, used by management as a measure of the Company's outstanding debt obligations not readily satisfied by cash on hand[46](index=46&type=chunk) Net Debt (Millions USD) | Metric | March 31, 2025 ($) | December 31, 2024 ($) | September 30, 2024 ($) | June 30, 2024 ($) | | :------------------------ | :----------------- | :-------------------- | :--------------------- | :---------------- | | Current debt | 131 | 53 | 2 | 2 | | Long-term debt | 5,237 | 5,991 | 6,370 | 6,741 | | Total debt | 5,368 | 6,044 | 6,372 | 6,743 | | Cash and cash equivalents | 67 | 625 | 64 | 160 | | **Net Debt** | **5,301** | **5,419** | **6,308** | **6,583** | [Reconciliation of Income Attributable to Common Stock to Adjusted Earnings](index=15&type=section&id=Reconciliation%20of%20Income%20Attributable%20to%20Common%20Stock%20to%20Adjusted%20Earnings) Adjusted earnings, a non-GAAP measure, significantly increased in Q1 2025, providing a clearer view of ongoing operations - Adjusted earnings and adjusted earnings per share are used to evaluate operating and financial performance by eliminating the impact of items not considered representative of ongoing business operations, facilitating comparisons to peers[48](index=48&type=chunk)[49](index=49&type=chunk) Adjusted Earnings (Millions USD, except per share data) | Metric | 1Q25 After Tax ($) | 1Q25 Diluted EPS ($) | 1Q24 After Tax ($) | 1Q24 Diluted EPS ($) | | :---------------------------------------- | :----------------- | :------------------- | :----------------- | :------------------- | | Net income attributable to common stock | 347 | 0.96 | 132 | 0.44 | | Adjustments (net of tax): | | | | | | Valuation allowance and EPL revaluation | 98 | 0.27 | 16 | 0.05 | | Gain on extinguishment of debt | (111) | (0.30) | — | — | | Unrealized derivative instrument loss | 22 | 0.06 | 6 | 0.02 | | Transaction, reorganization & separation costs | 28 | 0.07 | 19 | 0.06 | | **Adjusted earnings (Non-GAAP)** | **385** | **1.06** | **237** | **0.78** | [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides essential corporate information, including conference call details, company overview, and legal disclaimers [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) APA Corporation will host a conference call on May 8, 2025, to discuss Q1 results, with webcast and replay available - Conference call to discuss Q1 2025 results scheduled for **10 a.m. Central time, Thursday, May 8**[16](index=16&type=chunk) - Webcast available on APA's website (www.apacorp.com and investor.apacorp.com), with a replay available for **one year**[16](index=16&type=chunk) [About APA Corporation](index=4&type=section&id=About%20APA%20Corporation) APA Corporation is an independent energy company engaged in oil and gas exploration and production across multiple regions - APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the **United States, Egypt, and the United Kingdom**[17](index=17&type=chunk) - The company also explores for oil and natural gas **offshore Suriname and other locations**[17](index=17&type=chunk) - APA posts announcements, operational updates, investor information, and press releases on its website, www.apacorp.com[17](index=17&type=chunk) [Additional Information and Non-GAAP Financial Measures Explanation](index=4&type=section&id=Additional%20Information%20and%20Non-GAAP%20Financial%20Measures%20Explanation) The report includes non-GAAP reconciliations to enhance understanding of financial information and performance - Additional information includes reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities, and free cash flow (non-GAAP financial measures) to GAAP measures[18](index=18&type=chunk) - Non-GAAP financial information is provided to enhance understanding of consolidated financial information prepared in accordance with GAAP, and should be considered **in addition to, not instead of, GAAP statements**[19](index=19&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This news release contains forward-looking statements subject to risks and uncertainties, with no obligation for updates - Statements about future plans, expectations, and objectives for operations, including capital plans, drilling plans, production expectations, asset sales, and monetizations, are forward-looking[20](index=20&type=chunk) - Forward-looking statements are based on reasonable assumptions but are subject to **risks and uncertainties** that could cause actual results to differ materially[20](index=20&type=chunk) - APA and its subsidiaries undertake **no obligation to publicly update** any forward-looking statement, except as required by law[20](index=20&type=chunk) [Cautionary Note to Investors](index=6&type=section&id=Cautionary%20Note%20to%20Investors) Investors are cautioned regarding non-SEC compliant terms and advised to refer to the Form 10-K for detailed disclosures - The SEC permits disclosure only of **proved, probable, and possible reserves** that meet SEC definitions[21](index=21&type=chunk) - Terms like 'resources,' 'potential resources,' 'resource potential,' 'estimated net reserves,' and 'recoverable reserves' are **strictly prohibited by SEC guidelines** for filings and should not be relied upon as they do not account for certainty of recovery[21](index=21&type=chunk) - Investors are urged to carefully consider disclosures in APA's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, available on APA's website or the SEC's website[21](index=21&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for investor relations and media inquiries, along with the company's website, is provided - Investor contact: **(281) 302-2286**[22](index=22&type=chunk) - Media contact: **(713) 296-7276**[22](index=22&type=chunk) - Website: www.apacorp.com[22](index=22&type=chunk)