APA Corporation exceeded third-quarter expectations for both revenue and earnings, reporting total revenue of $2.77 billion and adjusted EPS of $1.94. Performance was driven by robust U.S. oil production and higher realized prices. Management raised its full-year 2026 free cash flow outlook to $2.9 billion and established a preliminary 2027 capital budget of $2.5 billion, emphasizing the GranMorgu development in Suriname and exploration targets.
Key Highlights
- Delivered U.S. oil production of 128,000 barrels per day, surpassing guidance by 4,000 barrels through high uptime and efficient well completions in the Permian Basin.
- Generated $699 million in free cash flow during the quarter, with $537 million returned to shareholders via dividends and $450 million in share repurchases.
- Reduced total debt by $2.8 billion since year-end 2024, resulting in annualized interest expense savings of over $180 million.
- Upstream capital investment of $466 million was $30 million below guidance, primarily due to the timing of GranMorgu spending shifting into the fourth quarter.