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Why Is APA (APA) Up 13% Since Last Earnings Report?
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A month has gone by since the last earnings report for APA (APA - Free Report) . Shares have added about 13% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is APA due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for APA Corporation before we dive into how investors and analysts have reacted as of late.
APA Corporation Q3 Earnings Beat Estimates Despite Weak Oil Prices
APA Corporation 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 & 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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -8.14% due to these changes.
VGM Scores
Currently, APA has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, APA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
APA is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Magnolia Oil & Gas Corp (MGY - Free Report) , a stock from the same industry, has gained 9.3%. The company reported its results for the quarter ended September 2025 more than a month ago.
Magnolia Oil & Gas Corp reported revenues of $324.93 million in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $0.41 for the same period compares with $0.52 a year ago.
Magnolia Oil & Gas Corp is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of -20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is APA (APA) Up 13% Since Last Earnings Report?
A month has gone by since the last earnings report for APA (APA - Free Report) . Shares have added about 13% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is APA due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for APA Corporation before we dive into how investors and analysts have reacted as of late.
APA Corporation Q3 Earnings Beat Estimates Despite Weak Oil Prices
APA Corporation 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 & 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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -8.14% due to these changes.
VGM Scores
Currently, APA has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, APA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
APA is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Magnolia Oil & Gas Corp (MGY - Free Report) , a stock from the same industry, has gained 9.3%. The company reported its results for the quarter ended September 2025 more than a month ago.
Magnolia Oil & Gas Corp reported revenues of $324.93 million in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $0.41 for the same period compares with $0.52 a year ago.
Magnolia Oil & Gas Corp is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of -20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.