APA (APA) investor relations material

Executive summary

• Delivered strong operational and financial performance in Q1 2026, with net income rising to $446 million ($1.26 per diluted share) and nearly $500 million in free cash flow, supported by robust U.S. oil production and disciplined cost management.

• Permian and Egypt assets anchor a sustainable production base, with Permian contributing 75% of adjusted production and Egypt renegotiating oil and gas terms to improve project economics.

• Suriname GranMorgu project remains on track for first oil in 2028, offering significant long-term growth and free cash flow potential.

• Maintained safe, uninterrupted operations in Egypt amid Middle East geopolitical tensions, with Egypt operations seeing net production up 8% year-over-year and a focus on gas drilling.

• Continued disciplined capital allocation, returning $88 million to shareholders in Q1 2026 and repaying $634 million in near-term bond maturities.

Financial highlights

• Q1 2026 consolidated net income was $446 million ($1.26 per diluted share) under GAAP; adjusted net income was $489 million ($1.38 per diluted share), excluding $37 million in unrealized derivative losses.

• Generated $477 million in free cash flow and $1.6 billion in adjusted EBITDAX, with $88 million returned to shareholders.

• Reported Q1 2026 production of 442,352 BOE/d, with U.S. production accounting for 60% of worldwide output.

• Net debt at quarter-end was $4.1 billion, down from $4.4 billion a year earlier.

• Total revenues for Q1 2026 were $2.33 billion, down from $2.64 billion in Q1 2025.

Outlook and guidance

• Raised full-year 2026 U.S. oil production outlook to 122,000 barrels per day, at the high end of prior range.

• Upstream capital investment guidance unchanged at $2.1 billion, with 55% of spending expected in H1 2026.

• Egypt gross gas production guidance reaffirmed at 540–550 MMCF per day for 2026; Egypt adjusted volume guidance lowered due to PSC impacts from higher commodity prices.

• Anticipate $2.2 billion in free cash flow for full year 2026.

• Committed to returning at least 60% of free cash flow to shareholders via dividends and share repurchases.