APA (APA) Q1 2026 earnings summary

Executive summary

• Delivered strong operational and financial performance in Q1 2026, with net income of $446 million ($1.26 per diluted share) and free cash flow of $477 million, supported by cost discipline and capital spend below guidance despite inflationary pressures.

• Permian and Egypt assets anchor a sustainable production base, with Permian contributing 75% of adjusted production and over 10 years of economic inventory; U.S. production accounted for 60% of worldwide output.

• Suriname GranMorgu project remains on track for first oil in 2028, offering significant long-term growth and free cash flow potential.

• Returned $88 million to shareholders via dividends in Q1 2026 and repaid $634 million in near-term bond maturities through April 2026.

• Continued execution of strategic priorities: high-quality portfolio, financial discipline, and cost leadership.

Financial highlights

• Q1 2026 reported production was 442,352 BOE/d, with U.S. oil production averaging 124,000 barrels per day, exceeding guidance.

• Net income attributable to common stock was $446 million ($1.26 per diluted share), with adjusted net income of $489 million ($1.38 per diluted share).

• Free cash flow was $477 million, and adjusted EBITDAX reached $1.6 billion.

• Net debt at quarter-end was $4.1 billion, down from $4.4 billion a year earlier.

• Gross interest expense reduced by 35% since 2024.

Outlook and guidance

• Raised full-year 2026 U.S. oil production outlook to 122,000 barrels per day, at the high end of prior range.

• Upstream capital investment guidance unchanged at $2.1 billion for 2026, with 55% of spending expected in H1.

• Egypt gross gas production guidance reaffirmed at 540–550 MMCF per day for 2026; Egypt adjusted volume guidance lowered due to PSC impacts from higher commodity prices.

• Expect to generate ~$2.2 billion in free cash flow for the full year 2026.

• U.S. and U.K. current tax expense for 2026 expected at ~$230 million, mostly in the U.K. at a 78% effective tax rate.