APA Raises U.S. Oil Forecast as Second-Quarter Output Beats Guidance
Thu, August 6, 2026 at 7:01 AM GMT+3 3 min read
APA Corporation reported second-quarter net income attributable to common shareholders of $747 million, or $2.11 per diluted share, as production surpassed the company's forecasts.
Adjusted earnings, excluding items affecting comparability, totaled $669 million, or $1.89 per share. APA generated $1.7 billion in operating cash flow, $1.8 billion in adjusted EBITDAX and $738 million in free cash flow during the quarter.
Reported production averaged approximately 410,000 barrels of oil equivalent per day. Adjusted production—which excludes Egypt noncontrolling interests and tax barrels—was 347,000 boepd.
U.S. oil production reached 123,500 barrels per day, exceeding guidance by 2,500 bpd. APA attributed the result to drilling and completion efficiencies and stronger base production in the Permian Basin.
The company raised its full-year U.S. oil production forecast to 123,000 bpd while maintaining its domestic capital budget at $1.3 billion. Total upstream capital spending is expected to reach $2.07 billion, with exploration expenditure reduced slightly due to a change in the timing of activity at Suriname's Block 58.
APA also lowered its full-year lease operating expense forecast by $25 million to $1.5 billion. It now expects to exit 2026 with annualized cost savings of approximately $500 million, up from its previous target of $450 million.
In Egypt, adjusted production averaged 61,000 boepd, in line with guidance, while gross output reached 207,000 boepd. Gross natural gas production rose to 539 million cubic feet per day as APA continued its gas-focused development program. Nearly half of its Egyptian gas production is now covered by a revised pricing agreement.
The producer repaid $673 million of bonds during the quarter, bringing first-half debt repayments to $752 million. Total debt has declined by $2.3 billion since the end of 2024, reducing annualized interest expenses by more than $155 million. Net debt stood at $3.3 billion at quarter-end.
APA returned $189 million to shareholders through dividends and share repurchases, including the repurchase of 2.8 million shares. The company continues to target returning at least 60% of 2026 free cash flow while reducing debt.
Beyond its core operations, APA is seeking to expand its exploration portfolio through the proposed acquisition of Savant Alaska and a partnership with Eni in Uruguay's offshore Block 6. APA will retain a 60% interest in the Uruguayan block, while Eni will fund most of an initial exploration well planned for 2027.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else.
You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.