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15:00
May 07 ◎

APA FY2026 Q1 Watch

APA Corporation (APA) FY2026 Q1 Earnings Call

XOM ETRN OKE CVX APA ▾

Ben Rogers

Management is seeing a $5 to $10 per barrel premium for dated Brent over futures Brent in Q2, which is expected to compress through the year, indicating strong spot demand. — Sustained physical tightness in the North Sea market is a bullish signal for producers with immediate supply access, like those in the region.

"That dated Brent differential to the price that you see on the screen has increased varied pretty widely in the first quarter, really March, and then in the second quarter. It's kind of $8 to $10 in the second quarter. It compresses"

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Ben Rogers

APA's gas trading portfolio is expected to generate $1.1 billion of pre-tax cash flow in 2026 due to wider Waha basis differentials and elevated LNG prices, but per the forward curve, basis differentials are expected to compress in the second half of the year as new pipelines (GCX, Blackcomb, Hugh Brinson) come online. — The expiry of wide Waha basis differentials directly impacts the profitability of Permian-focused gas processors and pipeline operators, whose takeaway capacity becomes less scarce.

"About $300 million is coming from LNG companies for the year, for the remainder of the year. And the bulk of the pipeline transport really is kind of through the summer where we see very wide basis differentials. To your point, that starts"

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John Chrisman

Management raised its multi-year Permian oil production outlook and guided to approximately $2.2 billion of free cash flow for the full year, citing strong execution, cost reductions, and a favorable commodity price environment.

"Looking ahead, we are carrying significant operational momentum into the balance of the year. In the U.S., we are raising our four-year oil production outlook to 122,000 barrels per day, reflecting our confidence in continued strong"

APA WATCH

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16:00
Feb 26 ◎

APA FY2025 Q4 Watch

APA Corporation (APA) FY2025 Q4 Earnings Call

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John Chrisman

TotalEnergies' execution in Suriname is a key driver for APA's expected free cash flow step-change in 2028.

"In Suriname, our partner, Total, continues to execute at a high level as we advance toward a mid-2028 first oil date."

TTE WATCH

Steve Reine

APA is seeing cost deflation in the Permian Basin, with D&C costs down to $595/ft in Midland and $750/ft in Delaware, and expects further improvements, suggesting industry-wide service cost pressures may be easing. — This could lead to lower service sector pricing power and suggest that other E&P operators may be seeing similar cost improvements, potentially impacting their own capital efficiency outlooks.

"Our current drilling and completion costs average $595 per foot in the Midland Basin and $750 per foot in the Delaware Basin."

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