APA (APA) investor relations material

Executive summary

• Achieved strong operational performance in Q2 2026, with production above guidance and capital investment below guidance in core Permian and Egypt assets.

• U.S. oil production averaged 123,500 barrels/day, 2,500 above guidance, driven by efficiency gains in the Permian Basin.

• Raised annualized run rate savings target to $500 million by year-end 2026.

• Advanced key projects, including Gran Morgu in Suriname (on track for mid-2028 first oil), and expanded exploration in Alaska and Uruguay through the Savant Alaska acquisition and Eni partnership.

• Net income attributable to common stock was $747 million ($2.11 per diluted share); adjusted earnings were $669 million ($1.89 per diluted share).

Financial highlights

• Q2 2026 revenues were $2.4 billion, up from $2.2 billion in Q2 2025; net income for Q2 2026 was $747 million.

• Free cash flow was $738 million in Q2 and $1.2 billion in H1 2026; 2026E free cash flow projected at $2.3 billion.

• Returned $189 million to shareholders in Q2 through dividends and share repurchases.

• Repaid $752 million of bond debt in H1 2026, including $673 million in Q2.

• Lease operating expense for FY26 guided at $1.5 billion, below prior guidance.

Outlook and guidance

• Raised full-year 2026 U.S. oil production guidance to 123,000 barrels/day, maintaining U.S. capital at $1.3 billion.

• Total company upstream capital investment expected at $2.07 billion for 2026.

• Lease operating expense guidance reduced to $1.5 billion for 2026.

• Projecting $2.3 billion of free cash flow for 2026 at current strip pricing.

• On track to achieve $3 billion net debt target in 2027, ahead of original schedule.