Apa 2025 Q3 Earnings 300% Positive Net Income Swing

Apa (APA) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with a 300% positive swing in net income and raised production guidance. The company returned to profitability with EPS of $0.57, reversing a $0.60 loss in 2024 Q3, while net income surged to $278 million from a $139 million loss.

Revenue

Apa’s total revenue fell 19.8% year-over-year to $2.02 billion in 2025 Q3, driven by lower oil, natural gas, and natural gas liquids production revenues of $1.80 billion. While purchased oil and gas sales contributed $311 million, derivative instrument losses offset $97 million, and net gains from divestitures added $5 million. Other adjustments reduced total revenues by $5 million.

Earnings/Net Income

The company achieved a remarkable turnaround, with net income of $278 million in 2025 Q3 compared to a $139 million loss in 2024 Q3, reflecting disciplined cost management and operational execution. Earnings per share (EPS) improved to $0.57 from a $0.60 loss, demonstrating strong recovery.

Price Action

Despite the positive earnings report, Apa’s stock price declined 1.32% on the latest trading day, 3.90% for the week, and 13.77% month-to-date.

Post-Earnings Price Action Review

Apa’s shares underperformed in the short term despite robust earnings, with a 13.77% monthly decline. Analysts attributed the downward pressure to broader oil market concerns and investor skepticism about macroeconomic headwinds. While the earnings beat estimates, the stock’s reaction highlighted market sensitivity to guidance revisions and debt reduction progress. The company’s accelerated cost-cutting initiatives and $350 million in run-rate savings by year-end 2025 provided some optimism, but near-term volatility persisted.

CEO Commentary

APA CEO John J. Christmann IV emphasized operational execution, cost management, and strategic priorities in his remarks. He highlighted production exceeding guidance across all regions, including U.S. oil production at 121,000 barrels per day and Egypt’s gas output driven by well outperformance. The CEO underscored $350 million in cost savings and $431 million in net debt reduction, expressing confidence in sustainable momentum for 2025.

Guidance

Apa raised fourth-quarter U.S. oil production guidance to 123,000 barrels per day and Egypt gas production expectations, supported by infrastructure optimization. Upstream capital investment is projected at $440 million, with $350 million in run-rate savings by year-end 2025 and an additional $50–100 million by 2026. The company also aims to return $339 million in free cash flow to shareholders.

Additional News

Apa announced $431 million in net debt reduction during Q3, bringing total reductions to nearly $2.3 billion since Q3 2024. The company returned $154 million to shareholders via dividends and share repurchases, aligning with its accelerated cost-saving initiatives. Additionally, Apa achieved $350 million in run-rate savings two years ahead of schedule, exceeding prior guidance.