Cost Savings Target Raised
The Company has raised its expected annualized savings target to $500 million by the end of 2026, an increase of $50 million from its previous guidance.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
APA's Q2 FY2026 was defined by sharply higher realized oil prices, which increased 50% year-over-year and more than compensated for a 12% decline in production. Management highlighted the positive impact on revenue and earnings, and raised its annualized cost savings target to $500 million by year-end 2026. The production decline reflected asset sales and deliberate gas curtailments, while the company continued its debt reduction program, repaying $752 million in principal during the period.
EPS (Diluted)
$2.11
+26.35% YoY
Operating Income
$1.28B
+73.21% YoY
Source: SEC XBRL
APA's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.89 | 1.89 | Beat +0.2% |
| Mar 2026 | 1.38 | 1.14 | Beat +20.6% |
| Dec 2025 | 0.91 | 0.65 | Beat +40.4% |
| Sep 2025 | 0.93 | 0.80 | Beat +16.7% |
Adjusted (non-GAAP) EPS of $1.89 versus the $1.89 analyst consensus — a +0.2% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.11.
Compiled by AI from 10-Q Item 2 of this filing
The Company has raised its expected annualized savings target to $500 million by the end of 2026, an increase of $50 million from its previous guidance.
Source: 10-Q Item 2 MD&A
APA significantly curtailed natural gas production in the Permian Basin during Q2, including at Alpine High, in response to extreme negative Waha basis differentials, which led to a 74% drop in realized natural gas prices.
Source: 10-Q Item 2 MD&A
The Company entered into an agreement to acquire Savant Alaska, LLC for approximately $70 million, expected to add 104,000 gross acres and approximately 1,500 b/d of oil production, closing by year-end 2026.
Source: 10-Q Item 2 MD&A
The Government of Egypt awarded a five-year extension covering approximately 3.4 million acres, with commitments for drilling and seismic work, while about 400,000 acres were not renewed.
Source: 10-Q Item 2 MD&A
APA repaid $754 million of long-term debt during the first six months of 2026, including the full redemption of its 4.250% Notes due 2030 and repayment of 7.95% Notes due 2026 at maturity.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
APA's earnings are highly sensitive to oil and NGL prices. A 50% year-over-year increase in realized oil prices drove Q2 net income to $747 million, demonstrating the impact of price swings on financial performance.
Source: 10-Q Income Statement (XBRL)
Total debt of $3.7 billion against stockholders' equity of $7.0 billion results in a debt-to-equity ratio of 0.53, increasing financial risk if operating cash flows weaken.
Source: 10-Q Balance Sheet (XBRL)
The current ratio fell to 0.95 as of June 30, 2026, indicating that current liabilities exceed current assets, which may pressure short-term financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Upstream capital investment of $1.1 billion in the first half of 2026 consumed 49% of operating cash flow, limiting free cash flow for debt reduction and shareholder returns if oil prices decline.
Source: 10-Q Cash Flow (XBRL)
Worldwide production fell 12% year-over-year due to asset sales and gas curtailments; failure to offset declines through drilling could erode revenue and proved reserves.
Source: 10-Q MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Income $B | 1.28 $B | 0.74 $B | +73.21% |
Net Income $M | 747.00 $M | 603.00 $M | +23.88% |
EPS (Basic) $ | 2.11 $ | 1.67 $ | +26.35% |
EPS (Diluted) $ | 2.11 $ | 1.67 $ | +26.35% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
APA Corporation delivered strong Q1 FY2026 earnings growth with net income up 28.5% YoY to $446M and EPS rising 31.3% to $1.26, though operating cash flow declined sharply by 49.5% to $554M.
APA Corporation delivered a strong FY2025, with net income surging 78.4% to $1.43B and operating cash flow rising 25.6% to $4.55B, driven by a 26.3% jump in operating income to $3.09B.
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