EarningsQ2 2026 Earnings Report
MX:APA Q2 2026 EPS Results
Actual EPS$34.36
Consensus EPS$34.47
Beat/MissMissed by -$0.11
One Year Ago EPS$15.82
MX:APA Q2 2026 Revenue Results
Actual Revenue$43.14B
Expected Revenue$44.73B
Beat/MissMissed by -$1.59B
YoY Revenue Growth+8.95%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:APA Upcoming Earnings
APA's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:APA Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational execution, meaningful cost and capital efficiency gains, robust free cash flow generation ($738M in Q2; >$1.2B YTD) and concrete balance sheet progress (H1 debt repayments, $3B net debt target expected in 2027). Management increased the exit run-rate savings target to $500M, raised Permian oil guidance to 123k bpd while lowering LOE guidance and holding the capital budget to $1.3B, and highlighted high-potential growth projects (GranMorgu on budget and on schedule for mid-2028; strategic Alaska infrastructure purchase; ENI partnership in Uruguay). Headwinds include inflationary pressures, timing-related LOE shifts (North Sea), deferred exploration timing (Block 58), some near-term gas timing impacts at Khafre, and frontier exploration risk in Uruguay. Overall, the positive operational and financial momentum, acceleration of run-rate savings, strong cash generation and clear path to deleveraging and shareholder returns substantially outweigh the listed challenges.Company Guidance
Strong Quarterly and YTD Cash Generation
Q2 2026 free cash flow of $738 million and consolidated net income of $747 million ($2.11 per diluted share). Through the first six months of 2026 APA generated more than $1.2 billion in free cash flow, which management noted is greater than each of the past three years.
Raised Full-Year Production Guidance (Permian)
Permian oil production guidance raised to 123,000 barrels per day from 120,000 bpd (approximately +2.5% vs prior guidance) while operating with fewer rigs (targeting 4 rigs for the remainder of the year) and keeping Permian capital in line with the $1.3 billion budget.
Improved Cost Structure and Run-Rate Savings
Exit-year run-rate savings target increased to $500 million (up from the $450 million target set at the beginning of the year; +11.1%). Management described captured efficiencies across capital, LOE and G&A; CFO indicated captured savings are closer to ~$475 million gross (net of inflation ~ $425 million) and annualized interest savings exiting the year closer to $175 million, yielding materially lower total costs vs 2024.
High Free Cash Flow Outlook for 2026
At current strip pricing APA expects approximately $2.3 billion of free cash flow for 2026, supported by a differentiated gas trading portfolio (expected pretax cash flow from gas trading ~ $950 million in 2026, inclusive of basis hedges).
Balance Sheet Progress and Capital Returns
Repaid $752 million of bond debt during H1 2026 (including $673 million in Q2) and returned $189 million to shareholders in Q2 via dividends and buybacks. Company expects to achieve the $3.0 billion net debt target in 2027 (earlier than prior 3–4 year estimate) and reiterated commitment to return at least 60% of free cash flow to shareholders in 2026.
Egypt: Gas Growth and Pricing Benefits
Egypt adjusted BOE production in line with guidance; gross gas production grew meaningfully in Q2 and ~50% of gas production now benefits from the revised pricing agreement signed in 2024, improving realized value per molecule and supporting a more sustainable cash flow profile. Full-year gross oil production expected ~118,000 bpd and gross gas ~535 MMcf/d while maintaining original BOE outlook.
Suriname GranMorgu On Budget and On Schedule
GranMorgu development continues on budget and on schedule toward first oil in mid-2028, positioned as a multi-year source of high-margin oil production and future free cash flow growth.
Strategic Portfolio Expansion: Alaska and Uruguay
Acquired Savant Alaska to secure critical infrastructure (processing facility, pipeline tie-in to TAPS, gravel pad, airstrip, dock) adjacent to APA acreage; winter appraisal program planned (Sockeye appraisal and Chinook exploration well). In Uruguay, APA brought in ENI as a strategic partner on Block 6 (APA retains 60% WI) with the initial exploration well planned for 2027 and ENI funding a significant portion of the well.
Operating Efficiency in the Permian
Operational execution (drilling, completions, field ops) is reducing required capital to sustain production; management expects to achieve $3.5 million per month run-rate operating cost savings target by year end and highlighted ongoing capital efficiency gains (drilling fewer rigs while maintaining or growing production).
Lower FY LOE Guidance
Full-year lease operating expense guidance set at $1.5 billion, $25 million below prior guidance, reflecting LOE savings primarily in the U.S. and North Sea that more than offset diesel inflation.
MX:APA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed