APA (APA) investor relations material

Executive summary

• Achieved over $1 billion in free cash flow for 2025, returning $640 million (63% of free cash flow) to shareholders and reducing net debt by $1.4 billion to just below $4 billion.

• Exceeded cost reduction targets, reaching a $350 million run-rate by year-end 2025 and projecting $450 million by end of 2026.

• Met or exceeded production guidance each quarter in 2025 while spending less capital than planned; sustained Permian oil production above guidance and advanced a comprehensive Permian inventory assessment.

• Grew Egypt gas production under a new pricing framework and advanced the GranMorgu development in Suriname, with Suriname on track for mid-2028 first oil.

• High-graded portfolio, improved capital efficiency, and strengthened balance sheet, positioning for long-term value creation.

Financial highlights

• Q4 2025 GAAP net income was $279 million ($0.79/share); adjusted net income was $324 million ($0.91/share).

• Generated $425 million in Q4 free cash flow; full-year free cash flow exceeded $1 billion.

• Returned $640 million to shareholders in 2025, representing over 60% of free cash flow.

• Proved reserves increased 9% year-over-year, surpassing 1 billion BOE; reserve replacement ratio exceeded 160%.

• Net debt at year-end 2025 was just below $4 billion, targeting $3 billion long-term.

Outlook and guidance

• 2026 capital program totals $2.1 billion, about 10% lower than 2025.

• U.S. capital spend of $1.3 billion aims to maintain flat oil production at 120,000–122,000 bpd despite Q1 weather downtime.

• Egypt capital spend of $500 million targets slight BOE growth; gross gas production expected to grow 13–15% in 2026.

• Suriname GranMorgu development allocated $230 million; exploration spend of $70 million focused on Alaska and Suriname.

• Free cash flow generation expected to remain strong, with Suriname contributing incremental growth from 2028.