APA (APA) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2025, with production volumes reaching 465,000 BOE per day and exceeding guidance in all regions.

• Net income attributable to common stock was $603 million ($1.67 per diluted share), with adjusted earnings of $313 million ($0.87 per share) for the quarter.

• Reduced net debt by over $850 million in Q2, aided by the New Mexico asset sale, and returned $140 million to shareholders through dividends and buybacks.

• Secured presidential approval for 2 million additional acres in Egypt, expanding the exploration portfolio by over 35%.

• Advanced major projects in Suriname and Alaska, with Suriname's GranMorgu project on track for first oil in mid-2028 and a successful Alaska flow test.

Financial highlights

• Q2 2025 revenues were $2.18 billion, down from $2.54 billion year-over-year, mainly due to lower oil prices.

• Adjusted EBITDAX for Q2 2025 was $1.3 billion, up from $1.1 billion in Q1 2025.

• Free cash flow for Q2 2025 was $134 million, all returned to shareholders via dividends and buybacks.

• Net debt at June 30, 2025, was $4.44 billion, down from $5.42 billion at year-end 2024.

• Operating expenses in Q2 2025 decreased to $1.58 billion from $1.86 billion in Q2 2024, reflecting lower LOE and TRS costs.

Outlook and guidance

• Full-year 2025 upstream capital investment is projected at $2.3–$2.4 billion, with a focus on Permian, Egypt, and North Sea development.

• Permian rig count reduced from eight to six due to drilling efficiencies, with oil production expected to remain flat.

• Accelerated cost reduction initiatives, targeting $350 million in run-rate savings by 2026 and $200 million in 2025.

• Long-term net debt target set at $3 billion, with a commitment to return 60% of free cash flow to shareholders.

• Suriname GranMorgu project capital guidance for 2025 raised to $275 million; first oil expected mid-2028.