APA (APA) Q3 2026 earnings summary

Executive summary

• Q3 adjusted production was 381,000 BOE/d; free cash flow reached $699 million, supporting $537 million in shareholder returns and continued debt repayment.

• Net income attributable to common stock was $698 million, or $2.00 per diluted share; adjusted net income was $676 million, or $1.94 per diluted share.

• GranMorgu remains on budget and schedule for first oil in mid-2028; the carry agreement limits development funding to 10% while retaining a 40% working interest.

Financial highlights

• Q3 revenue was $2.769 billion versus $2.115 billion in Q3 2025; net income attributable to common stock was $698 million versus $205 million.

• Net cash from operating activities was $1.376 billion; adjusted EBITDAX was $1.857 billion and free cash flow was $699 million.

• Nine-month free cash flow reached $1.914 billion versus $599 million in 2025; nine-month operating cash flow was $3.636 billion versus $3.737 billion.

• Upstream capital investment was $466 million, $30 million below guidance, primarily due to GranMorgu spending timing; lease operating expense was $418 million.

• Adjusted earnings exclude a $17 million after-tax unrealized derivative gain and other smaller items.

Outlook and guidance

• FY2026 free cash flow outlook rose $600 million from August to $2.9 billion at strip pricing; a $5/bbl WTI/Brent movement implies ~$45 million of November–December sensitivity.

• FY2026 U.S. oil guidance rose to 124,000 b/d from initial guidance of 120,000–122,000 b/d; Q4 production is expected to moderate with turn-in-line timing and seasonal weather.

• FY2026 upstream capital guidance is $2.1 billion; Q4 upstream investment is expected at ~$525 million, while abandonment and decommissioning spend is now $285 million, $15 million below prior guidance.

• Preliminary 2027 upstream capital is $2.5 billion: $1.5 billion U.S., $500 million Egypt, and $250 million each for GranMorgu development and exploration; U.S. and Egypt production is expected similar YoY.

• GranMorgu is planned for 220,000 b/d capacity and estimated recoverable resources above 750 MMbo; first oil is expected mid-2028.