APA Corporation (APA)
NASDAQEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
$42.77-3.19%
Close 2026-09-04 · 1-day change
NASDAQEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
QuarterlyIQ Insights · APA
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within energy on a research-validated quality screen. As of 2026-09-04.
The screen ranks APA against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Energy names rated strong grew net income 53% of the time over the next year (vs 58% for the rest of the cohort, n=1735).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue and accelerate cost reduction initiatives to reach $500 million in run-rate savings by year-end 2026, improving cost structure through operating efficiencies and corporate streamlining.
Stated as a priority in 4 of last 4 quarters. APA raised its run-rate cost savings target from $450 million to $500 million by 2026 year-end, reflecting continued strong execution including field-level efficiencies and corporate streamlining. The trajectory is delivering with the target increased twice since 2025-Q2, showing momentum in cost reduction initiatives.
“Increased expected 2026 exit run-rate cost savings to $500 million, up from the prior $450 million target.”
“Continued progress on cost reduction initiatives, maintaining trajectory toward $450 million cumulative run-rate savings by year-end 2026.”
“Now targeting $450 million run-rate controllable spend savings by year-end 2026.”
“Accelerated three-year cost reduction initiatives, targeting to achieve $350 million in run-rate savings in 2026 instead of by year-end 2027.”
Raise and sustain U.S. oil production guidance to at least 123,000 barrels per day in 2026, driven by efficiency gains and strong base production in the Permian Basin.
Stated as a priority in 4 of last 4 quarters. APA raised its U.S. oil production guidance from 122,000 barrels per day in 2026-Q1 to 123,000 barrels per day in 2026-Q2, delivering 123,500 barrels per day in 2026-Q2, exceeding guidance by 2,500 barrels. The trajectory matches management's stated growth focus with sustained production levels.
“Delivered U.S. oil production of 123,500 barrels of oil per day, 2,500 barrels per day above guidance.”
Advance the GranMorgu offshore development project in Suriname, targeting first oil in mid-2028 with capital investment and milestone payments as planned.
Stated as a priority in 3 of last 4 quarters. APA raised GranMorgu development capital guidance from $230 million to $275 million in 2025-Q4, maintaining the target for first oil in mid-2028. The project remains on track and is a key driver of future organic oil production growth, consistent with management's stated plans.
“APA is in a great position with a clear path to organic oil production growth led by GranMorgu.”
Continue to reduce total and net debt while returning at least 60% of free cash flow to shareholders through dividends and share repurchases.
Stated as a priority in 4 of last 4 quarters. APA reduced total debt by $2.3 billion since year-end 2024 through 2026-Q2 and repaid $752 million in near-term bonds in first half 2026. The company returned $189 million to shareholders in 2026-Q2 and $277 million in the first half, maintaining a commitment to capital returns and balance sheet strengthening. The trajectory is delivering consistent debt reduction and shareholder returns.
Grow exploration portfolio through acquisitions like Savant Alaska and partnerships such as with Eni in Uruguay to enhance development flexibility and exploration optionality.
Stated as a priority in 2 of last 4 quarters. APA is advancing its exploration portfolio with the pending acquisition of Savant Alaska and a strategic partnership with Eni in Uruguay. These moves are intended to enhance development flexibility and exploration optionality. The company has announced these initiatives recently, with limited financial metrics disclosed yet, indicating early-stage progress.
Over the trailing year it converted 1.18x of net income into operating cash flow. Historically, Energy names rated fragile grew net income 36% of the time over the next year (vs 47% for the rest of the cohort, n=996).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
12 material management or governance events in the past 24 months, led by executive changes. Historically, Energy names rated stable grew net income 59% of the time over the next year (vs 56% for the rest of the cohort, n=627).
Not investment advice. As of 2026-09-04.
“Raised full-year U.S. oil production outlook to 122,000 barrels per day.”
“U.S. oil production averaged 132,000 barrels per day in the fourth quarter.”
“U.S. oil production guidance has been raised to 123,000 barrels-per-day following another quarter of strong execution.”
“Full-year 2025 capital guidance for GranMorgu development raised to $275 million; on track for first oil mid-2028.”
“GranMorgu project remains on track for first oil from Suriname Block 58 in mid-2028.”
“Repaid $752 million of near-term bond debt in first half 2026; total debt declined by $2.3 billion since year-end 2024.”
“Repaid $634 million in near-term bond maturities through April 2026; interest expense expected to be more than $60 million lower in 2026.”
“Reduced total debt to less than $4.5 billion and net debt to less than $4 billion at year-end; returned $640 million to shareholders in 2025.”
“Reduced net debt by more than 15% during the quarter; returned $140 million to shareholders through dividends and share repurchases.”
“Pending Savant acquisition in Alaska and new strategic partnership with Eni S.p.A in Uruguay.”
“Continued to advance one of the industry's most differentiated exploration portfolios.”