APA Corporation reported its fourth‑quarter and full‑year 2025 financial results on February 25, 2026. Revenue for the year reached $1.98 billion, up 26.6% from $1.49 billion a year earlier, while net income rose to $1.43 billion from $804 million. Non‑GAAP earnings per share (EPS) for the year were $0.91, a 13% increase over the prior year’s $0.80 and a $0.26 beat on the consensus estimate of $0.65.
In the fourth quarter, APA generated $1.98 billion in revenue, surpassing the $1.92 billion consensus estimate by $60 million. Non‑GAAP EPS of $0.91 outpaced the $0.62–$0.65 estimate by $0.26–$0.29, while diluted EPS of $0.79 beat the $0.63 estimate by $0.16. Net income attributable to common shareholders was $279 million, down 21.2% from $354 million a year earlier, reflecting a 26.6% decline in revenue and a 19.4% drop in diluted EPS. The results were driven by strong cost discipline and a high‑grading of the portfolio, which helped maintain margins despite the revenue decline.
Full‑year 2025 earnings also showed significant year‑over‑year growth: basic and diluted EPS from continuing operations were $3.99 and $3.98, respectively, compared with $2.28 and $2.27 a year earlier. Operating income rose to $5.4 billion from $4.5 billion, and adjusted EBITDAX reached $5.4 billion, up from $4.5 billion in 2024. These gains were supported by higher production volumes in the U.S. and Suriname, offset by a decline in the North Sea segment.
APA’s management outlined a 2026 outlook that signals a disciplined capital allocation strategy. Upstream capital expenditures are projected at $2.1 billion, a 10% reduction from 2025, while total adjusted production is expected to decline to 371,000 barrels of oil equivalent per day. Revenue guidance for 2026 is $7.40 billion, with Q1 revenue estimated at $1.92 billion and EPS at $0.63. The company emphasized a focus on cost control, balance‑sheet strength, and exploration investment as key drivers of future performance.
CEO John J. Christmann IV said, "The progress we delivered in 2025 reflects a fundamental transformation of APA’s base business over the past several years. We have high‑graded the portfolio, significantly reduced our cost structure, strengthened the balance sheet, and further advanced our exploration efforts, resulting in a more focused, resilient, and capital‑efficient company." He added, "Turning to 2026, our strategic priorities are clear, and our capital plan is disciplined. We will sustain operational momentum, further reduce our cost structure, continue strengthening our balance sheet, and invest in the future through exploration."
Market reaction to the results was positive, with the stock rising 1.63% in after‑hours trading and 1.6% after the close, reflecting investor confidence in the company’s earnings beat and disciplined guidance.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.