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 ...

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]