APA sees moderating its US frac activity in 2H 2026

APA Corporation has indicated plans to moderate its U.S. fracturing activity in the second half of 2026, according to recent disclosures. This decision follows operational adjustments made in the second quarter, during which the company curtailed approximately 137 MMcf/d of U.S. natural gas production and 12,300 barrels per day of U.S. natural gas liquids production in response to weak or negative Waha hub prices. The move reflects a strategic response to market conditions and aims to optimize resource allocation amid fluctuating commodity prices.

APA’s second-quarter financial results included estimated average realized prices of $93.20 per barrel for U.S. oil and $25.10 per barrel for U.S. natural gas liquids, while natural gas prices averaged negative $2.20. The company also reported dry hole costs of $41 million and a net gain of $345 million on oil and gas purchases and sales, which included a $109 million realized loss from commodity derivatives.

APA repurchased 2.8 million shares during the quarter at an average price of $35.25 per share, and incurred general and administrative expenses totaling $65 million, including $10 million in stock-based compensation. The company will discuss its second-quarter results in detail during an earnings call scheduled for August 6.