APA Corporation Second-Quarter 2025 Results Financial Highlights APA Corporation reported Q2 2025 net income of $603 million ($1.67 diluted EPS), adjusted earnings of $313 million ($0.87 diluted EPS), and strong cash flow with $1.2 billion from operations and $1.3 billion adjusted EBITDAX Q2 2025 Key Financial Metrics | Metric | Amount (in millions) | | :--- | :--- | | Net Income (attributable to common stock) | $603 | | Diluted EPS | $1.67 | | Adjusted Earnings | $313 | | Adjusted Diluted EPS | $0.87 | | Net Cash Provided by Operating Activities | $1,200 | | Adjusted EBITDAX | $1,300 | Operational Highlights APA exceeded Q2 2025 production guidance with 465,000 BOE/day reported (394,000 adjusted), reduced Permian rig count while maintaining outlook, and expanded Egypt's footprint Q2 2025 Production | Metric | Volume (BOE/day) | | :--- | :--- | | Reported Production | 465,000 | | Adjusted Production | 394,000 | - Permian rig count reduced from eight to six due to drilling efficiencies, maintaining flat Permian volumes with fewer rigs57 - Egypt exceeded gas production guidance and secured presidential approval for 2 million additional acres, expanding its footprint by over 35%45 Capital Allocation and Balance Sheet APA returned $140 million to shareholders, reduced net debt by over $850 million (15%), and set a new long-term net debt target of $3 billion - Returned $140 million to shareholders through dividends and share repurchases59 - Reduced net debt by over $850 million (more than 15%), supported by asset sales and Egypt working capital inflows59 - Initiated a new long-term net debt target of $3 billion, reflecting confidence in durable cash flows and investment-grade credit profile10 Strategic Initiatives APA accelerated cost reduction targets to $350 million run-rate savings by 2026 and increased 2025 realized savings to $200 million, while GranMorgu project remains on track Updated Cost Reduction Targets | Metric | Previous Target | New Target | | :--- | :--- | :--- | | 3-Year Run-Rate Savings Goal | $350M by YE 2027 | $350M in 2026 | | 2025 Realized Savings | $130M | $200M | | 2025 Year-End Run-Rate Savings | $225M | $300M | - GranMorgu project in Suriname remains on schedule for first oil in mid-2028; 2025 capital guidance raised to $275 million for milestone payments, with no change to total project costs1314 Financial Statements and Supplemental Data Statement of Consolidated Operations Q2 2025 total revenues decreased to $2.18 billion from $2.54 billion, while net income attributable to common stock increased to $603 million ($1.67 diluted EPS) Q2 2025 vs Q2 2024 Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $2,178 | $2,543 | | Net Income Before Income Taxes | $1,028 | $928 | | Net Income Attributable to Common Stock | $603 | $541 | | Diluted EPS | $1.67 | $1.46 | Production Information Q2 2025 total reported production decreased 2% to 465,078 BOE/day, with US down 4% and Egypt up 8% driven by gas volumes Q2 2025 Production by Region (BOE/day) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | 289,902 | 303,416 | (4)% | | Egypt | 143,818 | 133,215 | 8% | | North Sea | 31,358 | 36,778 | (15)% | | Total | 465,078 | 473,409 | (2)% | Adjusted Production Information Q2 2025 adjusted production decreased 3% to 394,041 BOE/day, with US and North Sea declines offset by 11% growth in Egypt's adjusted volumes Q2 2025 Adjusted Production by Region (BOE/day) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | 289,902 | 303,416 | (4)% | | Egypt | 72,781 | 65,296 | 11% | | North Sea | 31,358 | 36,778 | (15)% | | Total | 394,041 | 405,490 | (3)% | Price Information APA realized lower Q2 2025 oil prices at $65.58/barrel (down from $82.28) but higher natural gas prices at $2.28/Mcf (up from $1.77) Average Realized Prices | Commodity | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Oil (per barrel) | $65.58 | $82.28 | | Natural Gas (per Mcf) | $2.28 | $1.77 | | NGL (per barrel) | $20.49 | $21.68 | Supplemental Financial Information Q2 2025 net cash from operations was $1.18 billion, with total assets at $18.08 billion, total debt at $4.55 billion, and cash at $107 million Summary Cash Flow Information Q2 2025 net cash provided by operating activities was $1.18 billion, with net cash used in investing and financing activities Q2 2025 Cash Flow Summary (in millions) | Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,181 | $877 | | Net cash used in investing activities | $(95) | $(64) | | Net cash used in financing activities | $(1,046) | $(755) | Summary Balance Sheet Information As of June 30, 2025, total assets were $18.08 billion, total debt was $4.55 billion, and APA shareholders' equity was $5.91 billion Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $107 | $625 | | Total assets | $18,078 | $19,390 | | Current debt | $263 | $53 | | Long-term debt | $4,288 | $5,991 | | Total debt | $4,551 | $6,044 | | APA shareholders' equity | $5,905 | $5,280 | Non-GAAP Reconciliations This section reconciles GAAP to non-GAAP metrics, including Q2 2025 upstream capital investment of $648 million, free cash flow of $134 million, and adjusted EBITDAX of $1.3 billion Reconciliation to Upstream capital investment Q2 2025 total upstream capital investment was $648 million, a decrease from $827 million in the prior year - Total Upstream capital investment for Q2 2025 was $648 million, down from $827 million in Q2 202440 Reconciliation to Free cash flow Q2 2025 free cash flow was $134 million, an increase compared to $103 million in the prior-year quarter - Free cash flow for Q2 2025 was $134 million, compared to $103 million in Q2 202442 Reconciliation to Adjusted EBITDAX Q2 2025 Adjusted EBITDAX was $1.3 billion, a decrease from $1.58 billion in the prior-year quarter - Adjusted EBITDAX for Q2 2025 was $1,299 million, compared to $1,576 million in Q2 202444 Reconciliation to net debt Net debt as of June 30, 2025, was $4.44 billion, a significant reduction from $5.42 billion at year-end 2024 - Net debt as of June 30, 2025, was $4,444 million, a significant reduction from $5,419 million at the end of 202446 Reconciliation to Adjusted earnings Q2 2025 adjusted earnings were $313 million, or $0.87 per diluted share, after accounting for various adjustments Q2 2025 Adjusted Earnings Reconciliation | Metric | Amount (in millions) | Per Diluted Share | | :--- | :--- | :--- | | Net income attributable to common stock (GAAP) | $603 | $1.67 | | Adjustments (net) | $(290) | $(0.80) | | Adjusted earnings (Non-GAAP) | $313 | $0.87 |
APA(APA) - 2025 Q2 - Quarterly Results