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APA Corporation Q3 Earnings Beat Estimates Despite Weak Oil Prices
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Key Takeaways
APA's Q3 adjusted EPS of $0.93 topped estimates but fell from last year's $1.00.
Higher-than-expected production and lower costs drove the quarterly earnings beat.
APA generated $1.5B in operating cash flow and returned $154M to its shareholders.
U.S. energy operator APA Corporation (APA - Free Report) reported third-quarter 2025 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate of 74 cents. The outperformance primarily reflects higher-than-expected production and lower costs.
The bottom line fell from the year-ago adjusted profit of $1.00 due to lower oil realizations.
Revenues of $2 billion were down 20.6% from the year-ago quarter’s sales and also lagged the Zacks Consensus Estimate by 1.3%.
Meanwhile, APA continues to reward its shareholders, having paid out $154 million in dividends and buybacks during the quarter.
Production of oil and natural gas averaged 463,815 BOE/d, which comprised 67% liquids. The figure was down a marginal 0.8% from the year-ago quarter but surpassed our expectation of 447,998 BOE/d.
U.S. output (accounting for 61% of the total) fell 6.5% year over year to 281,145 BOE/d, but production from the company’s international operations increased 9.5% to 182,670 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 308,446 barrels per day (Bbl/d). Natural gas output totaled 932,219 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the third quarter was $67.43 per barrel, down 13.6% from the year-ago realization of $78.06. However, the number came above our projection of $57.10. Meanwhile, the average realized natural gas price rose to $2.25 per thousand cubic feet (Mcf) from $1.43 in the year-ago period but missed our estimate of $2.06.
Costs & Financial Position
APA’s third-quarter lease operating expenses totaled $376 million, down 10.1% from $418 million in the year-ago period. Moreover, a 37% drop in purchased oil/gas costs and the absence of asset retirement obligations incurred last year meant that total operating expenses decreased nearly 48% from the corresponding period of 2024 to $1.5 billion. Our model had put the figure at some $45 million higher.
During the quarter under review, APA generated $1.5 billion of cash from operating activities while it incurred $542 million in upstream capital expenditures. The Zacks Rank #3 (Hold) company reported an adjusted operating cash flow of $1.2 billion. It also registered a free cash flow of $339 million compared to $219 million a year ago.
As of Sept. 30, APA had approximately $475 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 41.7%.
Guidance
APA expects production to average 446,000 BOE/d in Q4 and 461000 BOE/d in 2025 (up 1.4% year over year). Of this, oil volumes are likely to be 230,000 Bbl/d during the October-December period and 234,000 Bbl/d for the full year. The company pegged its upstream capital expenditure for the year at around $2.34 billion.
Some Key E&P Earnings
While we have discussed APA’s third-quarter results in detail, let’s see how some other upstream companies have fared this earnings season.
Shale-focused operator EOG Resources (EOG - Free Report) reported third-quarter adjusted EPS of $2.71, which beat the Zacks Consensus Estimate of $2.43 but decreased from the year-ago quarter’s $2.89. EOG’s results were driven by higher oil-equivalent production volumes. This was partially offset by a lower price realization.
As of Sept. 30, 2025, EOG Resources had cash and cash equivalents worth $3.5 billion and long-term debt of $7.7 billion. The current portion of the long-term debt totaled $27 million. In the reported quarter, the company generated $1.4 billion in free cash flow. Capital expenditure amounted to $1.65 billion.
ConocoPhillips (COP - Free Report) , one of the world’s largest independent oil and gas producers, reported adjusted EPS of $1.61, which beat the Zacks Consensus Estimate of $1.40. The bottom line decreased from the prior-year level of $1.78. ConocoPhillips’ better-than-expected quarterly earnings can be attributed to higher oil equivalent production volumes. The positives, however, were partially counterbalanced by lower average realized oil-equivalent prices and increased expenses.
As of Sept. 30, ConocoPhillips had $5.3 billion in cash and cash equivalents. The company had a total long-term debt of $22.5 billion and a short-term debt of $1 billion as of the same date. Capital expenditure and investments totaled $2.9 billion. Net cash provided by operating activities was $5.9 billion.
Natural gas producer EQT Corporation (EQT - Free Report) reported adjusted EPS of 52 cents per share, which beat the Zacks Consensus Estimate of 47 cents and improved significantly from the year-ago reported loss of 12 cents. The strong quarterly earnings were driven by higher sales volume and increased average realized prices. In the September quarter, EQT produced 634 billion cubic feet (Bcfe) of natural gas, higher than 581 Bcfe in the prior-year quarter. The production volumes, however, missed our estimate of 638 Bcfe.
EQT’s adjusted operating cash flow totaled $1.2 billion in the reported quarter, up from $522 million a year ago. The free cash flow totaled $601 million, turning around from a negative $121 million in the corresponding period of 2024.
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APA Corporation Q3 Earnings Beat Estimates Despite Weak Oil Prices
Key Takeaways
U.S. energy operator APA Corporation (APA - Free Report) reported third-quarter 2025 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate of 74 cents. The outperformance primarily reflects higher-than-expected production and lower costs.
The bottom line fell from the year-ago adjusted profit of $1.00 due to lower oil realizations.
Revenues of $2 billion were down 20.6% from the year-ago quarter’s sales and also lagged the Zacks Consensus Estimate by 1.3%.
Meanwhile, APA continues to reward its shareholders, having paid out $154 million in dividends and buybacks during the quarter.
APA Corporation Price, Consensus and EPS Surprise
APA Corporation price-consensus-eps-surprise-chart | APA Corporation Quote
Production & Selling Prices
Production of oil and natural gas averaged 463,815 BOE/d, which comprised 67% liquids. The figure was down a marginal 0.8% from the year-ago quarter but surpassed our expectation of 447,998 BOE/d.
U.S. output (accounting for 61% of the total) fell 6.5% year over year to 281,145 BOE/d, but production from the company’s international operations increased 9.5% to 182,670 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 308,446 barrels per day (Bbl/d). Natural gas output totaled 932,219 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the third quarter was $67.43 per barrel, down 13.6% from the year-ago realization of $78.06. However, the number came above our projection of $57.10. Meanwhile, the average realized natural gas price rose to $2.25 per thousand cubic feet (Mcf) from $1.43 in the year-ago period but missed our estimate of $2.06.
Costs & Financial Position
APA’s third-quarter lease operating expenses totaled $376 million, down 10.1% from $418 million in the year-ago period. Moreover, a 37% drop in purchased oil/gas costs and the absence of asset retirement obligations incurred last year meant that total operating expenses decreased nearly 48% from the corresponding period of 2024 to $1.5 billion. Our model had put the figure at some $45 million higher.
During the quarter under review, APA generated $1.5 billion of cash from operating activities while it incurred $542 million in upstream capital expenditures. The Zacks Rank #3 (Hold) company reported an adjusted operating cash flow of $1.2 billion. It also registered a free cash flow of $339 million compared to $219 million a year ago.
You can see the complete list of today’s Zacks #1 Rank stocks here.
As of Sept. 30, APA had approximately $475 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 41.7%.
Guidance
APA expects production to average 446,000 BOE/d in Q4 and 461000 BOE/d in 2025 (up 1.4% year over year). Of this, oil volumes are likely to be 230,000 Bbl/d during the October-December period and 234,000 Bbl/d for the full year. The company pegged its upstream capital expenditure for the year at around $2.34 billion.
Some Key E&P Earnings
While we have discussed APA’s third-quarter results in detail, let’s see how some other upstream companies have fared this earnings season.
Shale-focused operator EOG Resources (EOG - Free Report) reported third-quarter adjusted EPS of $2.71, which beat the Zacks Consensus Estimate of $2.43 but decreased from the year-ago quarter’s $2.89. EOG’s results were driven by higher oil-equivalent production volumes. This was partially offset by a lower price realization.
As of Sept. 30, 2025, EOG Resources had cash and cash equivalents worth $3.5 billion and long-term debt of $7.7 billion. The current portion of the long-term debt totaled $27 million. In the reported quarter, the company generated $1.4 billion in free cash flow. Capital expenditure amounted to $1.65 billion.
ConocoPhillips (COP - Free Report) , one of the world’s largest independent oil and gas producers, reported adjusted EPS of $1.61, which beat the Zacks Consensus Estimate of $1.40. The bottom line decreased from the prior-year level of $1.78. ConocoPhillips’ better-than-expected quarterly earnings can be attributed to higher oil equivalent production volumes. The positives, however, were partially counterbalanced by lower average realized oil-equivalent prices and increased expenses.
As of Sept. 30, ConocoPhillips had $5.3 billion in cash and cash equivalents. The company had a total long-term debt of $22.5 billion and a short-term debt of $1 billion as of the same date. Capital expenditure and investments totaled $2.9 billion. Net cash provided by operating activities was $5.9 billion.
Natural gas producer EQT Corporation (EQT - Free Report) reported adjusted EPS of 52 cents per share, which beat the Zacks Consensus Estimate of 47 cents and improved significantly from the year-ago reported loss of 12 cents. The strong quarterly earnings were driven by higher sales volume and increased average realized prices. In the September quarter, EQT produced 634 billion cubic feet (Bcfe) of natural gas, higher than 581 Bcfe in the prior-year quarter. The production volumes, however, missed our estimate of 638 Bcfe.
EQT’s adjusted operating cash flow totaled $1.2 billion in the reported quarter, up from $522 million a year ago. The free cash flow totaled $601 million, turning around from a negative $121 million in the corresponding period of 2024.