APA Corp Beats Q3 2026 Estimates and Raises Full-Year Cash Flow Outlook

APA Corp reported adjusted earnings per share of $1.94 for the third quarter of 2026, beating expectations against a consensus estimate of $1.59. Revenue of $2.77 billion also beat expectations and was up about 31% from the same quarter a year earlier. The quarter marks the sixth consecutive period in which APA has topped Wall Street estimates on both metrics.

A jump in realized oil prices drove much of the top-line strength. APA's realized oil price came in at $92.02 per barrel, up sharply from $67.43 a year ago. U.S. oil production averaged 128,000 barrels per day, which was 4,000 barrels per day above the company's own guidance, helped by high uptime and well completions that arrived ahead of schedule.

Free cash flow for the quarter reached $699 million, and the company used that firepower aggressively. APA repaid $451 million of debt in the quarter and returned $537 million to shareholders, including $450 million in share repurchases. Buybacks continued through October, lifting year-to-date repurchases to 17.8 million shares.

Management raised its full-year 2026 free cash flow outlook by $600 million to roughly $2.9 billion, with at least 60% of that targeted for shareholder returns. APA also set a new net debt target of $2.0 billion, stepping down from a prior target of $3.0 billion. Full-year U.S. oil production guidance was lifted to 124,000 barrels per day, above the initial range of 120,000 to 122,000 barrels per day.

Looking beyond 2026, CEO John J. Christmann IV pointed to the company's Suriname project, GranMorgu, as progressing toward first oil in mid-2028. A preliminary 2027 upstream capital budget of $2.5 billion was also disclosed, with exploration and GranMorgu development accounting for roughly 60% of the year-over-year increase in that capital figure. The pending Savant acquisition was noted among the company's growth initiatives as well.