APA Corporation Reports Q2 2025 Financial Results with $603 Million Net Income

APA Corporation reported its financial results for the second quarter of 2025, revealing a net income attributable to common stock of $603 million, or $1.67 per diluted share, compared to $541 million, or $1.46 per diluted share, in the same quarter of 2024. Total revenues for the quarter were $2.612 billion, a decrease from $2.792 billion year-over-year, primarily due to lower commodity prices. The company’s oil, natural gas, and natural gas liquids production revenues fell to $1.718 billion from $2.201 billion in the prior year, reflecting a 20% decline in average realized oil prices. However, the company benefited from unrealized gains on commodity derivatives and cost reductions, which helped offset the revenue decline.

In the first half of 2025, APA's net income attributable to common stock reached $950 million, or $2.62 per diluted share, up from $673 million, or $2.00 per diluted share, in the same period of 2024. This increase was driven by enhanced production from the Permian Basin and the Callon acquisition, alongside gains from debt extinguishment and derivative instruments. The company generated $2.3 billion in cash from operating activities, an 83% increase compared to the first half of 2024, largely due to favorable working capital timing.

Operationally, APA's U.S. assets accounted for 62% of its total production, with daily production averaging 289,902 barrels of oil equivalent (boe) in the second quarter of 2025, a 4% decrease from the previous year. The company operated an average of seven drilling rigs in the Permian Basin and brought 36 new wells online during the quarter. In Egypt, the company averaged 13 drilling rigs and drilled 20 productive wells, with production from its Egyptian assets increasing by 8% year-over-year. Additionally, APA completed the sale of its New Mexico Permian assets for $573 million, recognizing a gain of $282 million, which was primarily used for debt reduction.

Looking ahead, APA anticipates continued volatility in commodity prices due to macroeconomic uncertainties and geopolitical factors. The company plans to invest approximately $2.3 billion to $2.4 billion in upstream capital expenditures for 2025, focusing on its core areas in the Permian Basin and Egypt. APA remains committed to returning 60% of its free cash flow to shareholders through dividends and share repurchases, maintaining a balanced approach to capital allocation while strengthening its balance sheet. The company also expects to close on additional exploration acreage in Egypt, further expanding its operational footprint in the region.