APA Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to common stock of $698 million ($2.00 per diluted share) for the quarter, compared to $205 million ($0.57 per diluted share) in the prior year period.
• Adjusted earnings totaled $676 million ($1.94 per diluted share), up from $332 million ($0.93 per diluted share) in the prior year quarter.
• Total revenues were $2.769 billion for the quarter, compared to $2.115 billion in the prior year quarter; year-to-date revenues were $7.469 billion versus $6.929 billion.
• Net cash provided by operating activities was $1.38 billion for the quarter and $3.636 billion year-to-date.
• Free cash flow was $699 million for the quarter and $1.91 billion year-to-date.
• Adjusted EBITDAX was $1.86 billion for the quarter.
• Upstream capital investment was $466 million for the quarter, approximately $30 million below guidance.
• Lease operating expenses were $418 million for the quarter.
• Total debt declined by $2.8 billion since year-end 2024; net debt was $3.2 billion at the end of the third quarter.
• Annualized interest expense decreased by more than $180 million due to debt reduction.

Guidance and Future Outlook:

• Increased full-year 2026 free cash flow outlook to approximately $2.9 billion, an increase of $600 million from the August update.
• Raised full-year 2026 U.S. oil production guidance to 124,000 barrels per day, up from the initial 120,000–122,000 barrels per day.
• Preliminary 2027 upstream capital budget established at $2.5 billion, representing a $400 million year-over-year increase.
• Reiterated $500 million run-rate cost savings target across capital, lease operating expense, and G&A by year-end 2026.
• Lowered net debt target to $2 billion, down from the previous $3 billion target.
• Fourth-quarter upstream capital investment expected to be approximately $525 million.
• Full-year abandonment and decommissioning expenditures revised to $285 million, a $15 million reduction from prior guidance.
• Lease operating expense guidance increased by $25 million to $1,525 million for the full year.
• Egypt gross BOE production expected to increase slightly for the fourth quarter and full year.
• Fourth-quarter U.S. oil production expected to moderate due to turn-in-line timing and seasonal weather.

Business Segments and Product Lines:

• Reported total production of approximately 450,000 BOE per day; adjusted production (excluding Egypt noncontrolling interest and tax barrels) was 381,000 BOE per day.
• U.S. oil production averaged 128,000 barrels per day, 4,000 barrels above guidance, driven by high uptime, earlier turn-in-lines, and robust new well performance in the Permian Basin.
• Egypt gross production averaged 206,000 BOE per day, relatively flat with the second quarter; gross gas production increased to 542 MMCF per day.
• Adjusted Egypt production averaged 64,000 BOE per day, slightly lower than guidance due to production sharing contract impacts from higher Brent prices.
• Average gas realizations in Egypt increased to $4.34 per Mcf from $4.23 in the second quarter.
• North Sea oil production averaged 17,815 barrels per day for the quarter.
• GranMorgu development and exploration capital are expected to account for approximately 60% of the 2027 capital budget increase.
• GranMorgu is progressing toward first oil in mid-2028.

Market and Competitive Landscape:

• Average realized oil price in the U.S. was $87.37 per barrel for the quarter, compared to $66.03 in the prior year quarter.
• Average realized oil price in Egypt was $99.72 per barrel for the quarter.
• Average realized oil price in the North Sea was $92.91 per barrel for the quarter.
• Average realized natural gas price in the U.S. was $1.22 per Mcf for the quarter.
• Average realized natural gas price in Egypt was $4.34 per Mcf for the quarter.
• Average realized natural gas price in the North Sea was $21.19 per Mcf for the quarter.

Risks and Challenges:

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including commodity prices, drilling and development plans, asset acquisitions, debt reduction targets, and capital returns.
• Specific risks include exploration success, technical improvements in drilling access, commerciality, and other factors affecting resource recovery.
• Production sharing contract impacts in Egypt can affect adjusted production volumes based on Brent prices.
• Seasonal weather impacts and turn-in-line timing can affect U.S. oil production profiles.

Management Commentary and Tone:

• CEO John J. Christmann IV stated the company is delivering another strong year with consistent execution across the business.
• Management highlighted raising performance standards, operating more efficiently, and translating gains into substantial cash flow.
• The CEO noted the company generated nearly $700 million in free cash flow, returned more than $500 million to shareholders, and reduced total debt by more than $450 million in the quarter.
• Management expressed confidence in entering 2027 well-positioned with a strong core business, significant opportunities, and a diversified portfolio.
• The company expects to return at least 60% of 2026 free cash flow to shareholders while strengthening the balance sheet.

Other Key Points:

• Returned $537 million to shareholders in the third quarter, including $450 million in share repurchases.
• Repaid $451 million of debt maturities in the third quarter; total debt maturities repaid year-to-date were $1.2 billion.
• Through October, the company repurchased an additional 4.5 million shares at an average price of $47.32 per share, bringing total year-to-date repurchases to 17.8 million shares.
• Dividends declared per common share were $0.25 for the quarter.
• The company has a capital carry in Suriname.
• Pending acquisition of Savant assets mentioned in forward-looking statements.
• Conference call scheduled for November 5, 2026, at 10 a.m. Central time.