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APA (APA) Up 20.9% 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 20.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 latest earnings report in order to get a better handle on the recent drivers for APA Corporation before we dive into how investors and analysts have reacted as of late.
APA Corp Q2 Earnings Beat Estimates on Higher Oil Prices
APA Corporation reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses.
Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues.
Meanwhile, APA continues to reward its shareholders, having paid out $189 million through dividends and share repurchases during the second quarter of 2026.
Production & Selling Prices
Production of oil and natural gas averaged 409,959 BOE/d, which comprised 69% liquids. The figure was down 11.8% from the year-ago quarter but surpassed our expectation of 404,982 BOE/d.
U.S. output (accounting for 64% of the total) fell 9.2% year over year to 263,187 BOE/d, but production from the company’s international operations decreased 16.2% to 146,772 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 284,605 barrels per day (Bbl/d). Natural gas output totaled 752,125 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the second quarter was $98.24 per barrel, up almost 50% from the year-ago realization of $65.58. The number also significantly surpassed our projection of $76.35. The average realized natural gas price fell to 60 cents per thousand cubic feet (Mcf) from $2.28 in the year-ago period and missed our estimate of $2.03.
Costs & Financial Position
APA’s second-quarter lease operating expenses totaled $353 million, down 3.8% from $367 million in the year-ago period. Moreover, proceeds from purchased oil/gas of $122 million meant that total operating expenses decreased nearly 29.2% from the corresponding period of 2025 to $1.1 billion. The number was below our model projection of $1.4 billion.
During the quarter under review, APA generated $1.7 billion of cash from operating activities while it incurred $546 million in upstream capital expenditures. The company registered a free cash flow of $738 million compared to $134 million a year ago.
As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%.
Guidance
For full-year 2026, APA has raised its U.S. oil production guidance to 123,000 barrels per day while keeping its U.S. capital spending plan unchanged at $1.3 billion. Total upstream capital investment is projected at $2.07 billion, with exploration spending slightly lower due to the timing shift of exploration activities at Suriname Block 58. Meanwhile, lease operating expense guidance has been reduced by $25 million to $1.5 billion, reflecting continued cost-saving initiatives.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 34.67% due to these changes.
VGM Scores
At this time, APA has a great Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock has a score of A on the value side, putting it in the top 20% 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, Viper Energy Partners (VNOM - Free Report) , a stock from the same industry, has gained 8.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Viper Energy reported revenues of $677 million in the last reported quarter, representing a year-over-year change of +127.9%. EPS of $0.76 for the same period compares with $0.41 a year ago.
Viper Energy is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of +32.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +11.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viper Energy. Also, the stock has a VGM Score of B.
View the Zacks #1 Rank List
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APA (APA) Up 20.9% 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 20.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 latest earnings report in order to get a better handle on the recent drivers for APA Corporation before we dive into how investors and analysts have reacted as of late.
APA Corp Q2 Earnings Beat Estimates on Higher Oil Prices
APA Corporation reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses.
Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues.
Meanwhile, APA continues to reward its shareholders, having paid out $189 million through dividends and share repurchases during the second quarter of 2026.
Production & Selling Prices
Production of oil and natural gas averaged 409,959 BOE/d, which comprised 69% liquids. The figure was down 11.8% from the year-ago quarter but surpassed our expectation of 404,982 BOE/d.
U.S. output (accounting for 64% of the total) fell 9.2% year over year to 263,187 BOE/d, but production from the company’s international operations decreased 16.2% to 146,772 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 284,605 barrels per day (Bbl/d). Natural gas output totaled 752,125 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the second quarter was $98.24 per barrel, up almost 50% from the year-ago realization of $65.58. The number also significantly surpassed our projection of $76.35. The average realized natural gas price fell to 60 cents per thousand cubic feet (Mcf) from $2.28 in the year-ago period and missed our estimate of $2.03.
Costs & Financial Position
APA’s second-quarter lease operating expenses totaled $353 million, down 3.8% from $367 million in the year-ago period. Moreover, proceeds from purchased oil/gas of $122 million meant that total operating expenses decreased nearly 29.2% from the corresponding period of 2025 to $1.1 billion. The number was below our model projection of $1.4 billion.
During the quarter under review, APA generated $1.7 billion of cash from operating activities while it incurred $546 million in upstream capital expenditures. The company registered a free cash flow of $738 million compared to $134 million a year ago.
As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%.
Guidance
For full-year 2026, APA has raised its U.S. oil production guidance to 123,000 barrels per day while keeping its U.S. capital spending plan unchanged at $1.3 billion. Total upstream capital investment is projected at $2.07 billion, with exploration spending slightly lower due to the timing shift of exploration activities at Suriname Block 58. Meanwhile, lease operating expense guidance has been reduced by $25 million to $1.5 billion, reflecting continued cost-saving initiatives.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 34.67% due to these changes.
VGM Scores
At this time, APA has a great Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock has a score of A on the value side, putting it in the top 20% 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, Viper Energy Partners (VNOM - Free Report) , a stock from the same industry, has gained 8.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Viper Energy reported revenues of $677 million in the last reported quarter, representing a year-over-year change of +127.9%. EPS of $0.76 for the same period compares with $0.41 a year ago.
Viper Energy is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of +32.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +11.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viper Energy. Also, the stock has a VGM Score of B.