Apa 2025 Q3 Earnings 300% Net Income Surge Drives Turnaround

APA Corporation (APA) delivered a dramatic turnaround in Q3 2025, posting $278 million in net income—a 300% positive swing from a $139 million loss in the prior-year period—while raising production guidance. The results exceeded expectations, driven by disciplined cost management and operational efficiencies.

Revenue

Apa’s total revenue declined 19.8% to $2.02 billion in Q3 2025, reflecting lower commodity prices and derivative losses. Core production revenue from oil, natural gas, and liquids led with $1.80 billion, while purchased oil and gas sales added $311 million. However, derivative instrument losses of $97 million and a $5 million net gain on divestitures offset gains.

Earnings/Net Income

The company returned to profitability with EPS of $0.57, reversing a $0.60 loss in 2024 Q3. The 300% net income improvement underscores strong operational execution and cost discipline, positioning APA for sustained growth.

Post-Earnings Price Action Review

The strategy of buying APA shares post-earnings and holding for 30 days yielded moderate returns but underperformed the market. The 3-year average annual return of 2.5% lagged behind the S&P 500’s 7.5%, constrained by broader market outperformance and post-earnings volatility.

CEO Commentary

APA’s CEO, John J. Christmann IV, highlighted exceeding production guidance, cost savings ahead of schedule, and balance sheet strengthening. Adjusted earnings of $0.93 per share and $332 million in free cash flow underscore the company’s momentum.

Guidance

APA raised U.S. oil production guidance to 123,000 barrels per day and Egypt gas production expectations. The company anticipates $350 million in cost savings by year-end 2025 and $50–100 million by 2026, with upstream capital investment aligned with prior guidance.

Additional News

Recent developments include APA’s strategic focus on infrastructure optimization and well performance, bolstering production forecasts. The company’s board approved a $1.00 annual dividend, reflecting confidence in free cash flow generation. Additionally, APA’s $440 million Q4 upstream capital budget aligns with its long-term growth strategy, emphasizing operational efficiency and disciplined spending.