APA Corp SEC 10-Q Report

APA Corp, a leading oil and gas exploration and production company, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational activities, reflecting the challenges and achievements faced during the period.

Financial Highlights

Total Revenues: APA Corp reported total revenues of $2,178 million for Q2 2025, a decrease from $2,543 million in Q2 2024. This decline was primarily attributed to lower commodity prices.

Operating Income: The company achieved an operating income of $737 million for Q2 2025, compared to $979 million in Q2 2024. This reduction indicates a decrease in operating expenses.

Net Income: Net income for Q2 2025 was $603 million, up from $541 million in Q2 2024. This increase was driven by unrealized gains on commodity derivative instruments and cost reductions.

Net Income Per Common Share - Basic: The net income per common share (basic) was $1.67 for Q2 2025, compared to $1.46 for Q2 2024, reflecting improved profitability.

Net Income Per Common Share - Diluted: Similarly, the net income per common share (diluted) was $1.67 for Q2 2025, compared to $1.46 for Q2 2024, consistent with the basic earnings per share.

Business Highlights

Geographical Performance

• United States: U.S. operations accounted for 62% of APA Corp's worldwide production during Q2 2025. The company averaged seven drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and three rigs in the Delaware Basin, and brought online 36 operated wells during the quarter.
• Egypt: In Egypt, APA Corp averaged 13 drilling rigs and drilled 20 new productive wells during Q2 2025. The company also averaged 19 workover rigs, aligning its drilling and workover activity to improve capital efficiency. Gross production from Egypt decreased by 4%, while net production increased by 8% compared to Q2 2024.
• North Sea: The North Sea operations contributed to the company's oil, natural gas, and natural gas liquids production revenues, with a focus on maintaining production levels.

Sales Units

• Oil Production: APA Corp reported oil production revenues of $1,381 million for Q2 2025, with the U.S. contributing 53%, Egypt 38%, and the North Sea 9%.
• Natural Gas Production: Natural gas production revenues for Q2 2025 were $184 million, with Egypt contributing 59%, the U.S. 26%, and the North Sea 15%.
• Natural Gas Liquids Production: NGL production revenues for Q2 2025 were $153 million, with the U.S. contributing 94% of the total.

New Production Launches

• Alaska: APA Corp and its partners announced a successful flow test of an exploratory well in Alaska, averaging 2,700 barrels per day during the final flow period. The company holds a 50% ownership interest in the project and will evaluate the data to determine next steps.

Future Outlook

• Egypt: Following the success of the gas program and the relative softening of oil prices, APA Corp expects one-third of its activities in Egypt to be gas-focused, with anticipated strong performance and increasing realized gas prices through the rest of the year.
• New Acreage in Egypt: The Government of Egypt awarded APA Corp an additional 2 million net exploration acreage in the Western Desert for a period of five years, expanding the company's existing position in the country. The transaction is expected to close in Q3 2025.

SEC Filing: APA Corp [ APA ] - 10-Q - Aug. 07, 2025