APA tops Q3 profit estimates, raises 2026 free cash flow outlook
APA said adjusted earnings of $1.94 per diluted share topped the $1.57 consensus estimate, and revenue of $2.77 billion beat the $2.53 billion estimate. It raised its 2026 free cash flow outlook to approximately $2.9 billion.
Key takeaways
- APA Corporation (APA) said on Nov. 4 that adjusted earnings for the third quarter were $1.94 per diluted share, topping the $1.57 consensus estimate. Total revenue was $2.77 billion. It raised its 2026 free cash flow outlook to approximately $2.9 billion and lowered its net debt target to $2 billion.
APA Corporation (APA) topped third-quarter profit estimates and raised its full-year free cash flow outlook, the company said on Nov. 4 in its results release.
Shares rose 1.1% in after-hours trading as of 5:38 p.m. ET, from a regular-session close of $44.46.
APA owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom, and explores offshore Suriname.
Adjusted earnings were $1.94 per diluted share for the quarter, topping the $1.57 consensus estimate.
Here's how the company did:
- Adjusted EPS: $1.94 vs. 93 cents a year earlier, topping the $1.57 consensus estimate
- Net income per diluted share, GAAP: $2.00 vs. 57 cents a year earlier
- Revenue: $2.77 billion vs. $2.12 billion a year earlier, topping the $2.53 billion consensus estimate
Net income attributable to common stock was $698 million, against $205 million a year earlier. Production averaged about 450,000 barrels of oil equivalent per day, up 10% from a year earlier.
Net income has risen in each of the last three quarters, from $205.0 million in the third quarter of 2025 to $747.0 million in the second quarter of 2026, according to its SEC filings.
Guidance and cash returns
The company raised its 2026 free cash flow outlook to approximately $2.9 billion, an increase of $600 million from its August update. It now expects full-year U.S. oil production of 124,000 barrels per day, above its initial guidance of 120,000 to 122,000 barrels per day.
Lease operating expense guidance rose $25 million to $1,525 million, reflecting higher stock-based compensation expense allocated to lease operating expense.
APA returned $537 million to shareholders in the quarter, including $450 million of share repurchases. Through October, it bought 4.5 million more shares at an average price of $47.32 per share, bringing year-to-date repurchases to 17.8 million shares.
The company lowered its net debt target to $2 billion. It had said at current strip prices it expected to reach a $3 billion target by year-end.
Debt and 2027 budget
APA repaid $451 million of debt maturities in the third quarter and has reduced total debt by $2.8 billion since year-end 2024. Net debt was $3.2 billion at the end of the quarter.
The company's preliminary upstream capital budget for 2027 is $2.5 billion. Exploration and GranMorgu development account for about 60% of the $400 million year-over-year increase, and the company expects similar U.S. and Egypt production in 2027.
CEO John J. Christmann IV said, "We are delivering another strong year, with our third-quarter results reflecting the quality of our assets and consistent execution across the business." He added that the teams were "operating more efficiently, and translating those gains into substantial cash flow."
GranMorgu is expected to reach first oil in mid-2028, the company said.
APA will host a conference call on Nov. 5 at 10 a.m. Central time, webcast from its website.