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APA (APA) Up 5.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for APA (APA - Free Report) . Shares have added about 5.5% 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 the 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 Q1 Earnings Beat Estimates on Higher Oil Prices
APA Corporation reported first-quarter 2026 adjusted earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.01. The bottom line rose from the year-ago adjusted profit of $1.06. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses.
Revenues of $2.2 billion were down 15.2% from the year-ago quarter’s sales but beat the Zacks Consensus Estimate by 4.8%.
Meanwhile, APA continues to reward its shareholders, having paid out $88 million in dividends during the first quarter of 2026.
Production & Selling Prices
Production of oil and natural gas averaged 442,352 BOE/d, which comprised 69% liquids. The figure was down 6% from the year-ago quarter but surpassed our expectation of 439,997 BOE/d.
U.S. output (accounting for 60% of the total) fell 11% year over year to 264,720 BOE/d, but production from the company’s international operations increased 4.1% to 177,632 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 304,947 barrels per day (Bbl/d). Natural gas output totaled 824,426 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the first quarter was $78.69 per barrel, up 6.7% from the year-ago realization of $73.73. The number also significantly surpassed our projection of $56.74. The average realized natural gas price fell to $2.12 per thousand cubic feet (Mcf) from $2.81 in the year-ago period and missed our estimate of $3.62.
Costs & Financial Position
APA’s first-quarter lease operating expenses totaled $362 million, down 11% from $407 million in the year-ago period. Moreover, an 84.2% drop in purchased oil/gas costs meant that total operating expenses decreased nearly 25% from the corresponding period of 2025 to $1.4 billion. The number was below our model projection of $1.5 billion.
During the quarter under review, APA generated $554 million of cash from operating activities while it incurred $564 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 $477 million compared to $126 million a year ago.
As of March 31, APA had approximately $293 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 40%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 24.85% due to these changes.
VGM Scores
At this time, APA has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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, Diamondback Energy (FANG - Free Report) , a stock from the same industry, has gained 6.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Diamondback reported revenues of $4.24 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $4.23 for the same period compares with $4.54 a year ago.
Diamondback is expected to post earnings of $5.67 per share for the current quarter, representing a year-over-year change of +112.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Diamondback. Also, the stock has a VGM Score of B.
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APA (APA) Up 5.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for APA (APA - Free Report) . Shares have added about 5.5% 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 the 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 Q1 Earnings Beat Estimates on Higher Oil Prices
APA Corporation reported first-quarter 2026 adjusted earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.01. The bottom line rose from the year-ago adjusted profit of $1.06. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses.
Revenues of $2.2 billion were down 15.2% from the year-ago quarter’s sales but beat the Zacks Consensus Estimate by 4.8%.
Meanwhile, APA continues to reward its shareholders, having paid out $88 million in dividends during the first quarter of 2026.
Production & Selling Prices
Production of oil and natural gas averaged 442,352 BOE/d, which comprised 69% liquids. The figure was down 6% from the year-ago quarter but surpassed our expectation of 439,997 BOE/d.
U.S. output (accounting for 60% of the total) fell 11% year over year to 264,720 BOE/d, but production from the company’s international operations increased 4.1% to 177,632 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 304,947 barrels per day (Bbl/d). Natural gas output totaled 824,426 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the first quarter was $78.69 per barrel, up 6.7% from the year-ago realization of $73.73. The number also significantly surpassed our projection of $56.74. The average realized natural gas price fell to $2.12 per thousand cubic feet (Mcf) from $2.81 in the year-ago period and missed our estimate of $3.62.
Costs & Financial Position
APA’s first-quarter lease operating expenses totaled $362 million, down 11% from $407 million in the year-ago period. Moreover, an 84.2% drop in purchased oil/gas costs meant that total operating expenses decreased nearly 25% from the corresponding period of 2025 to $1.4 billion. The number was below our model projection of $1.5 billion.
During the quarter under review, APA generated $554 million of cash from operating activities while it incurred $564 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 $477 million compared to $126 million a year ago.
As of March 31, APA had approximately $293 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 40%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 24.85% due to these changes.
VGM Scores
At this time, APA has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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, Diamondback Energy (FANG - Free Report) , a stock from the same industry, has gained 6.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Diamondback reported revenues of $4.24 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $4.23 for the same period compares with $4.54 a year ago.
Diamondback is expected to post earnings of $5.67 per share for the current quarter, representing a year-over-year change of +112.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Diamondback. Also, the stock has a VGM Score of B.