APA (APA) Q2 2026 Earnings
GAAP EPS of $2.11 includes $117M pre-tax unrealized derivative instrument gains ($92M after-tax, -$0.26/share), $12M transaction/reorganization costs ($9M after-tax, +$0.02/share), $4M loss on extinguishment of debt ($4M after-tax, +$0.01/share), and $2M loss on divestitures
How Did APA Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −0.34%.
Did APA Beat Earnings? Q2 2026 Results
Yes. APA reported Q2 2026 earnings of $1.89 a share on Aug 5, 2026, beating the $1.87 consensus estimate by 1.0%. Revenue was $2.4B against a $2.4B estimate.
APA Corporation delivered a solid second quarter in 2026, posting adjusted earnings of $1.89 per diluted share and extending its streak of beating consensus EPS estimates to five consecutive quarters, edging past the $1.87 analyst forecast by 1.01%. Revenue of $2.37 billion rose 8.9% year over year, falling just 0.10% short of the $2.38 billion consensus, a negligible gap against an otherwise strong operational backdrop. The primary engine behind the results was a sharp recovery in oil prices, with U.S. oil averaging $98.46 per barrel compared to $64.84 a year ago, a tailwind that more than offset modestly lower production volumes. Free cash flow reached $738 million for the quarter, helping APA retire $673 million in bond debt during Q2 alone and reduce total debt by $2.30 billion since year-end 2024. Management sharpened its outlook, raising full-year U.S. oil production guidance to 123,000 barrels per day, lowering lease operating expense guidance by $25 million to $1.50 billion, and lifting its 2026 exit run-rate cost savings target to $500 million, signaling continued confidence in operational efficiency heading into the second half.
- U.S. oil production of 123,500 b/d exceeded guidance by 2,500 b/d, driven by drilling and completion efficiency gains and strong base production in the Permian Basin
- Higher oil prices — U.S. average of $98.46/bbl vs. $64.84/bbl year-ago
- Egypt gas production increased to 539 MMcf/d, with nearly half benefiting from revised pricing agreement
- Upstream capital investment of $546 million and lease operating expenses of $353 million both below guidance
- Cost reduction initiatives accelerated to $500 million exit run-rate savings target
“We delivered a very strong second quarter, with excellent operational execution across our core assets. We're sustaining top-tier operational performance and driving stronger production, lower costs and lower capital intensity. These results reflect the structural improvements we've made over the past two years to become a cost leader and drive higher capital efficiency across the Permian and Egypt. APA is in a great position with a strengthening balance sheet, a highly capital-efficient base business, a clear path to organic oil production growth led by GranMorgu and multiple high-quality investment opportunities in exploration.”
APA CEO, on the earnings call
What Is APA's Outlook?
APA raised full-year 2026 U.S. oil production guidance to 123,000 b/d (from prior guidance) while maintaining U.S. capital at $1.3 billion. Total company upstream capital investment is expected to be $2.07 billion, slightly lower than prior guidance due to a shift in timing of Suriname Block 58 exploration activity. Lease operating expenses guidance was lowered by $25 million to $1.5 billion. The company increased its expected 2026 exit run-rate cost savings target to $500 million, up from the prior $450 million target. APA expects to return at least 60% of free cash flow to shareholders in 2026. The pending Savant Alaska acquisition ($70 million upfront) is expected to close by year-end 2026, and an initial exploration well in Uruguay with Eni is planned for 2027.
APA YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.4B | $2.2B | +8.9% |
| Operating Income | $1.3B | $671.0M | +90.3% |
| Net Income | $747.0M | $603.0M | +23.9% |
APA Revenue by Segment
When Does APA Report Next?
Figures from SEC filings and company reports. Not investment advice.