APA (APA) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
APA Corporation (APA) delivered a strong financial and operational performance in Q4 2025, marked by significant achievements that underscore its strategic focus on cost efficiency and growth. The company reported GAAP net income of $279 million, or $0.79 per diluted share, while adjusted net income reached $324 million, or $0.91 per diluted share, excluding non-cash impairments and other items. Free cash flow totaled $425 million for the quarter, with $154 million returned to shareholders through dividends and share repurchases. Over the full year, free cash flow exceeded $1 billion, with 63% allocated to shareholder returns. Notably, net debt decreased by approximately $1.4 billion compared to the prior year, ending at just below $4 billion.
Key highlights from the earnings call included a robust Permian production performance, where oil volumes significantly outpaced guidance due to incremental completions and favorable weather conditions. In contrast, Egypt’s gas production faced challenges, with gross output of 501 million cubic feet per day falling short of expectations due to pipeline disruptions, though operations have since stabilized. APA also reported a 9% year-over-year increase in proved reserves, bringing total proven reserves to over one billion barrels of oil equivalent. The reserve replacement ratio exceeded 160%, demonstrating the company’s ability to maintain resource sustainability.
Cost savings remained a key focus area, with APA exceeding $300 million in annualized cost reductions and achieving a $350 million run-rate two years ahead of schedule. This progress reflects the company’s commitment to optimizing its operations and improving efficiency across its asset portfolio. Looking forward, APA plans to reduce controllable spend by $200 million in 2026, half from incremental savings initiatives and half from decreased Permian activity.
The company’s capital allocation strategy continued to prioritize shareholder returns while supporting long-term growth opportunities. In 2026, Permian capital is expected to total $1.3 billion, with $1.2 billion allocated to development and $100 million to
Verticals
financeinvesting
Originally published on The Motley Fool on 2/26/2026