APA (APA) Q3 2026 Earnings Report
MX:APA Q3 2026 EPS Results
- Actual EPS
- MXN 36.33
- Consensus EPS
- MXN 29.98
- Beat/Miss
- Beat by +MXN 6.35
- One Year Ago EPS
- MXN 17.42
MX:APA Q3 2026 Revenue Results
- Actual Revenue
- MXN 51.85B
- Expected Revenue
- MXN 46.38B
- Beat/Miss
- Beat by +MXN 5.48B
- YoY Revenue Growth
- +30.92%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
APA's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive, supported by record-level free cash flow generation, raised 2026 free cash flow guidance, production outperformance in the US, stable Egypt operations, accelerated cost savings, substantial shareholder returns, debt reduction, and progress toward GranMorgu first oil. The company also outlined a larger 2027 investment and exploration program. Offsetting factors included slightly below-guidance adjusted Egypt production, expected fourth-quarter US production moderation, higher capital and LOE guidance, inflationary pressures, ongoing decommissioning obligations, and geopolitical and exploration uncertainties. Overall, highlights significantly outweighed the lowlights.
For the fourth quarter, US oil production is expected to moderate, while Egypt gross BOE production is expected to increase slightly; full year US oil production guidance is 124 thousand barrels per day, above the initial guidance of 120 thousand to 122 thousand barrels per day, and 2026 free cash flow outlook is $2.9 billion, up $600 million from August. Full year 2026 upstream capital guidance is $2.1 billion, ARO spending is reduced by $15 million, and LOE guidance is increased by $25 million; at current strip pricing, approximately $650 million of additional share repurchases are expected by year end, consistent with returning at least 60% of annual free cash flow to shareholders. Gas trading is expected to generate approximately $1.1 billion in pretax cash flow this year and $950 million next year. Preliminary 2027 upstream capital is approximately $2.5 billion, with exploration and GranMorgu development accounting for roughly 60% of the increase from 2026, similar US and Egypt production year over year, mid single digit cost inflation in the Permian program, and exploration capital returning to 10% to 15% of annual upstream capital; 2 exploration wells are planned in Suriname, 1 exploration well and an appraisal test in Alaska, and the Offshore Block 6 well in Uruguay is expected to spud in late 2 thousand 27. APA expects to reach the $500 million annualized savings target by the end of this year, establish a new net debt target of $2 billion, and the gas trading portfolio is expected to generate about $950 million of pretax cash flow next year.
- Strong Third-Quarter Earnings and Free Cash FlowAPA reported net income attributable to common stock of $698 million, or $2 per diluted common share. Adjusted net income was $676 million, or $1.94 per diluted common share. Free cash flow was $699 million, bringing the year-to-date total to more than $1.9 billion.
- Raised 2026 Free Cash Flow OutlookHigher expected production in the US and Egypt and stronger commodity prices increased APA's 2026 free cash flow outlook to $2.9 billion, up $600 million from August.
- Significant Shareholder ReturnsAPA repurchased 10.5 million shares during the quarter at an average price of $42.78, for approximately $450 million, and paid $87 million of dividends. Total third-quarter shareholder returns were $537 million. Through October, share repurchases totaled $762 million and reduced the outstanding share count by approximately 5% since year-end 2025. At current strip pricing, APA expects approximately $650 million of additional share repurchases by year-end, consistent with returning at least 60% of annual free cash flow to shareholders.
- Continued Debt Reduction and Lower Interest ExpenseAPA retired approximately $450 million of debt during the third quarter. Total debt ended the quarter at $3.3 billion and net debt at $3.2 billion. Debt reduction since year-end 2024 has lowered annualized interest expense by more than $180 million compared with 2024. The company expects to achieve its $3 billion net debt target in the near future and established a new $2 billion net debt target.
- US Oil Production Exceeded GuidanceUS oil production averaged 128 thousand barrels per day, exceeding guidance due to high uptime, earlier turn-in-lines, and robust new-well performance. Total US production averaged 294 thousand BOEs per day, also above guidance.
- Higher 2026 US Oil Production GuidancePermian drilling and completion efficiency gains improved capital productivity and increased full-year US oil production guidance to 124 thousand barrels per day, above the initial guidance range of 120 thousand to 122 thousand barrels per day.
- Egypt Gas Performance and Stable ProductionEgypt gross BOE production was relatively flat quarter over quarter at 206 thousand BOEs per day. Gross gas production of 542 million cubic feet per day exceeded guidance due to strong well performance and more resilient base production. Average gas realizations increased to $4.34 per Mcf from $4.23 in the second quarter.
- GranMorgu Advancing on ScheduleTotal continues to advance GranMorgu on budget and on schedule for first oil in mid-2028. APA's third-quarter development capital was approximately $40 million, below guidance, while the full-year outlook remained unchanged. Under the carry agreement, APA funds only 10% of GranMorgu's development capital while retaining its 40% working interest and exposure to future project cash flows.
- Cost Savings Target AcceleratedAPA achieved its original target of $350 million in annualized savings by the end of 2027 two years ahead of schedule and increased the target to $500 million, which it expects to reach by the end of 2026. Combined with $180 million of annualized interest savings, the year-end target would represent approximately $680 million of annualized savings compared with the cost structure at the end of 2024.
- Operating Cost Savings Absorbed Higher Egypt Diesel CostsUnderlying operating cost performance remained strong, with savings across the asset base absorbing $40 million of higher diesel costs in Egypt during the year.
- Gas Trading Portfolio Remains a Major Cash Flow ContributorAt current strip pricing and inclusive of basis hedges, APA expects its gas trading portfolio to generate approximately $1.1 billion of pretax cash flow in 2026 and $950 million in 2027. The portfolio generated $2.5 billion during 2026 and is expected to generate more than $3 billion across 2026 and 2027.
- 2027 Investment Program Supports Future GrowthAPA's preliminary 2027 upstream capital estimate is approximately $2.5 billion. Exploration and GranMorgu development account for roughly 60% of the increase from 2026, with the remainder driven by Permian activity and modest inflation. The program is expected to result in similar US and Egypt production year over year while advancing GranMorgu toward first oil.
- Increased 2027 Permian Activity and Delaware FocusPermian activity is expected to increase relative to 2026, with a greater percentage allocated to the Delaware Basin. APA said its current-year Midland-to-Delaware activity mix is approximately 85% to 15% and is expected to migrate over time toward approximately 60% Midland and 40% Delaware.
- Expanded Exploration ProgramExploration capital is expected to return to the targeted range of 10% to 15% of annual upstream capital. In Suriname, two exploration wells are planned with Total to target additional resource potential that could extend GranMorgu's production plateau or support a second development. Alaska's winter program includes one exploration well and an appraisal test of the Sockeye discovery, while APA expects to spud its Offshore Block 6 well with Eni in Uruguay in late 2027.
- Suriname Exploration Opportunities Are Within the Development AreaAPA said the planned Suriname prospects are in similar reservoirs and the same play as Crabdagu and are within the current development area. The wells are expected to be cost recoverable under the existing project and could provide potential to extend the production plateau or support additional infrastructure and a possible second development.
- Alaska Nanushuk Play Derisked by Two DiscoveriesAPA said the King Street and Sockeye discoveries confirmed a working petroleum system, high-quality reservoir, and the company's seismic and geologic interpretations. The company plans to appraise Sockeye with the Hungry Horse well and test a larger separate feature with Chinook.
- Egypt Workover Efficiency ImprovedEgypt is currently running between 15 and 20 workover rigs, and the number of jobs completed per workover rig is 23% higher than in the recent past. APA said the workover backlog has been reduced to a relatively small number and that workover activity supports base production resilience.
- LOE Projects Delivering Expected BenefitsAPA's approximately $100 million of 2026 LOE projects, primarily in the Permian and involving initiatives such as ESP conversion to gas lift, larger-scale gas treatment, and facility consolidation, are being delivered on time and as expected. The projects are expected to provide approximately $40 million of run-rate LOE savings, with additional projects included in the preliminary 2027 budget.
- Uruguay Deepwater Exploration Well Supported by EniAPA entered into a contract with Noble to drill the Black Hawk well in Offshore Block 6 in Uruguay, where APA holds 60% and Eni holds 40%. Eni will cover most of the well costs. The prospect is a deepwater Cretaceous depositional system analogous to systems that have worked on Atlantic margins, including Namibia.
- Financial Flexibility to Fund Growth and ReturnsManagement said strong free cash flow from core producing assets, the GranMorgu carry agreement, ongoing debt reduction, and continued shareholder returns provide flexibility to fund exploration, development capital, decommissioning activities, and future growth opportunities.
MX:APA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 35.73- | 17.04 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 29.9836.33 | 17.42 | 108.60% (+18.91) | |
| Aug 05, 2026 | 2026 (Q2) | 35.5135.39 | 16.29 | 117.24% (+19.10) | |
| May 06, 2026 | 2026 (Q1) | 20.8425.84 | 19.85 | 30.19% (+5.99) | |
| Feb 25, 2026 | 2025 (Q4) | 12.0617.04 | 14.79 | 15.19% (+2.25) | |
| Nov 05, 2025 | 2025 (Q3) | 14.8517.42 | 18.73 | -7.00% (-1.31) | |
| Aug 06, 2025 | 2025 (Q2) | 8.6916.29 | 21.91 | -25.64% (-5.62) | |
| May 07, 2025 | 2025 (Q1) | 15.7519.85 | 14.61 | 35.90% (+5.24) | |
| Feb 26, 2025 | 2024 (Q4) | 18.2014.79 | 21.54 | -31.30% (-6.74) | |
| Nov 06, 2024 | 2024 (Q3) | 18.1818.73 | 24.91 | -24.81% (-6.18) |
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.
