Highlights

• Reported production of 464,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 387,000 BOE per day;
• Exceeded third-quarter reported production guidance in all three operating regions while delivering upstream capital and operating costs below guidance;
• Increased fourth-quarter Egypt natural gas production guidance on continued well outperformance and infrastructure utilization; increased fourth-quarter Permian oil production guidance on strong operational execution;
• Expect to achieve $350 million in run-rate controllable spend savings by year-end 2025, two years sooner than initially anticipated; established target for additional run-rate savings by year-end 2026; and
• Reduced net debt by $431 million during the quarter while returning $154 million to shareholders through dividends and share repurchases.

APA Corporation has announced its financial and operating results for the third quarter of 2025. 

APA reported net income attributable to common stock of $205 million, or $0.57 per diluted share. When adjusted for items that impact the comparability of results, APA’s adjusted earnings were $332 million, or $0.93 per diluted share. Net cash provided by operating activities was $1.5 billion, and adjusted EBITDAX was $1.3 billion.

“Our strong third-quarter results demonstrate our continued focus on operational execution, disciplined cost management, and the delivery of our strategic priorities,” said John J. Christmann IV, APA’s chief executive officer. “Once again, we exceeded production guidance across all operating areas, continued to deliver cost savings initiatives ahead of schedule and further strengthened our balance sheet. We believe the progress we have achieved in 2025 is sustainable and provides great momentum for the future.”

Third-quarter summary  

Third-quarter reported production was 464,000 BOE per day and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 387,000 BOE per day. U.S. oil production was 121,000 barrels per day, exceeding guidance on strong operational execution. Egypt production was also ahead of guidance, driven by the continued outperformance of natural gas well productivity and the optimization of existing infrastructure. 

Upstream capital investment and lease operating expense (LOE) were below guidance, while G&A expense was in line with guidance. The company generated $339 million of free cash flow, returning $154 million to shareholders through dividends and share repurchases. 

During the third quarter, APA reduced its net debt by approximately $430 million, driven by a combination of free cash flow generation and payments from Egypt. The company has reduced its net debt by nearly $2.3 billion since the third quarter of 2024, with a current net debt balance of roughly $4.0 billion. 

Accelerated delivery of cost reduction initiatives and increased targets 

With the continued momentum from its cost reduction initiatives, APA is once again accelerating and increasing its cost savings targets. The company now expects to achieve run-rate savings of $350 million by the end of 2025, two years sooner than originally anticipated. APA expects to recognize an additional $50 million to $100 million of run-rate savings by the end of 2026, spanning across development capital, LOE, and G&A.

The company is also increasing its anticipated realized savings target in 2025 to $300 million, compared to $200 million previously, driven by additional progress made on reducing drilling and completion (D&C) costs in the Permian and LOE in the North Sea. 

“The accelerated delivery of our cost reduction initiatives reflects our organization’s commitment to continuous improvement,” Christmann said. “We have now established a sustainably lower cost structure, improving the quality of our investment opportunities while strengthening the resiliency of our portfolio.”

Fourth-quarter outlook 

U.S. oil production guidance has been raised to 123,000 barrels-per-day following another quarter of strong execution. In Egypt, gross gas production is also expected to grow at a higher rate than previously anticipated. APA’s upstream capital investment in the fourth quarter is expected to be approximately $440 million, consistent with the company’s prior guidance issued in the second quarter. 

KeyFacts Energy: APA US onshore country profile