APA Corporation Q4 EPS Beats by 47 Cents, Free Cash Flow Hits $425M
APA Corporation delivered Q4 adjusted EPS of $0.91, topping estimates by 47 cents, and generated revenues of $2.0 billion, 3% above forecasts despite a 20.9% year-over-year decline. Production averaged 459,767 BOE/d, surpassing expectations, while operating expenses fell 26%, supporting $425 million in free cash flow.
1. Q4 Earnings Beat Estimates
APA reported fourth-quarter adjusted earnings of $0.91 per share, exceeding the consensus estimate of $0.62. Revenues totaled $2.0 billion, 3% above projections despite a 20.9% year-over-year decline driven by lower commodity prices.
2. Cost Reduction and Cash Generation
Production averaged 459,767 BOE/d, topping the expected 445,960 BOE/d, with international output up 2.1%. Lease operating expenses fell 25.3% to $354 million and purchased oil/gas costs dropped 71.7%, enabling $425 million in free cash flow.
3. 2026 Production and Capex Guidance
APA anticipates first-quarter production of 440,000 BOE/d and full-year output of 436,000 BOE/d, down over 6% year over year. The company plans approximately $2.1 billion in upstream capital expenditures for 2026.