Core Insights - The Q2 2025 results were negatively impacted by postponed data licensing deals, challenging operational conditions on a streamer project, and lower partner participation in multi-client projects, leading to reduced revenue recognition [1][5] - Despite short-term caution from clients due to macroeconomic uncertainty and high oil price volatility, the long-term need for exploration remains strong, as large E&P companies face declining production rates without new reserves [1] Financial Performance - Order inflow for Q2 2025 was USD 133 million, resulting in a total order backlog of USD 425 million [5] - Net cash flow improved to USD 11 million in Q2 2025, compared to a negative cash flow of USD 13 million in Q2 2024 [5] - The company is maintaining a stable dividend payment of USD 0.155 per share to be paid in Q3 2025 [5] Cost Management - Gross operating costs for 2025 are expected to be approximately USD 950 million, down from previous guidance of USD 1,000 million, driven by efficiency gains and vessel scheduling [5]

Core Insights - APA Corporation, along with partners Lagniappe Alaska, LLC and Oil Search (Alaska), LLC, achieved significant results at the Sockeye-2 exploratory well in Alaska's North Slope, which could enhance future developments in the region [1][6] Group 1: Sockeye-2 Well Performance - The Sockeye-2 well was drilled to approximately 10,500 feet, encountering a Paleocene-aged clastic reservoir with an average porosity of 20% [2] - The well flowed without stimulation or artificial lift, averaging 2,700 barrels of oil per day over a 12-day production test, confirming superior reservoir quality compared to other discoveries [2][5] - This well sets a new benchmark for shallow-marine reservoirs on the eastern North Slope [2] Group 2: North Slope Project Overview - The North Slope project is a joint venture where APA Corp holds a 50% working interest, Lagniappe Alaska, LLC has a 25% operating interest, and Santos holds the remaining 25% [3] - The joint venture began an exploration campaign in 2023 but faced challenges, leading to a renewed effort in 2024 with plans for three exploratory wells, including King Street-1 [4] Group 3: Future Implications for Alaska's Energy Landscape - The success of the Sockeye-2 well is expected to extend the Brookian topset play established with the Pikka discovery in 2013, validating geological models and reducing risks for future prospects [6] - This discovery, along with planned appraisal drilling, could represent a pivotal moment for Alaska's energy landscape, offering promising exploration and development opportunities [6]