Why Is APA (APA) Up 13% Since Last Earnings Report?

Core Viewpoint - APA Corporation reported a strong performance in Q3 2025, with adjusted earnings of 93 cents per share, exceeding estimates despite lower oil prices [2]. Financial Performance - Adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate of 74 cents, primarily due to higher production and lower costs [2] - Revenues totaled $2 billion, down 20.6% year-over-year and slightly below the Zacks Consensus Estimate by 1.3% [2] - The bottom line decreased from $1.00 in the previous year due to lower oil realizations [2] Production & Selling Prices - Average production was 463,815 BOE/d, with 67% being liquids, a slight decrease of 0.8% from the previous year but above expectations [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 projections [6] - Average realized natural gas price rose to $2.25 per thousand cubic feet from $1.43 in the previous year, missing estimates [6] Costs & Financial Position - Lease operating expenses were $376 million, down 10.1% from $418 million a year ago [7] - Total operating expenses decreased nearly 48% year-over-year to $1.5 billion, significantly lower than expectations [7] - Generated $1.5 billion in cash from operating activities, with upstream capital expenditures of $542 million [8] - Free cash flow was $339 million, up from $219 million a year ago [8] - As of September 30, the company had approximately $475 million in cash and cash equivalents and $4.3 billion in long-term debt, with a debt-to-capitalization ratio of 41.7% [8] Guidance - APA expects production to average 446,000 BOE/d in Q4 and 461,000 BOE/d in 2025, reflecting a 1.4% year-over-year increase [9] - Oil volumes are projected to be 230,000 Bbl/d for Q4 and 234,000 Bbl/d for the full year [9] - Upstream capital expenditure for the year is estimated at around $2.34 billion [9] Market Sentiment - Estimates have trended downward, with a consensus estimate shift of -8.14% [11] - APA holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [13] Industry Comparison - APA is part of the Zacks Oil and Gas - Exploration and Production - United States industry, which has seen Magnolia Oil & Gas Corp gain 9.3% over the past month [14] - Magnolia Oil & Gas reported revenues of $324.93 million, a year-over-year decline of 2.5%, with an EPS of $0.41 compared to $0.52 a year ago [15]