APA's U.S. Oil Realized Price Falls as Gas Turns Positive
The company estimated a $190 million before-tax gain on oil and gas purchases and sales in the third quarter, down from $345 million.
APA Corporation (APA) said U.S. oil realized prices fell to $87.50 a barrel in the third quarter of 2026, down from $93.20 a barrel in the second quarter, as the oil and gas producer posted supplemental estimates ahead of a Nov. 5 earnings call.
The company explores for and produces oil and natural gas in the United States, Egypt and the United Kingdom, and explores offshore Suriname. It also said U.S. natural gas realized prices turned positive at $1.45 a Mcf after a $2.20 a Mcf realized loss in the prior quarter. International oil was estimated at $98.50 a barrel.
International NGL realized prices rose to $155.00 a barrel from $73.40 a barrel. The increase primarily reflects low volumes and the timing of revenue recognition.
The before-tax net gain on oil and gas purchases and sales declined to $190 million from $345 million. The third-quarter gain included an $8 million realized gain from commodity derivatives, versus a $109 million realized loss in the second quarter. Dry hole costs before tax fell to $25 million from $41 million.
General and administrative expenses totaled about $115 million, including $56 million of stock-based compensation, most of which reflects mark-to-market impacts of APA’s share price during the quarter. That compared with $65 million of G&A in the second quarter, including about $10 million of stock-based compensation.
Share repurchases accelerated. APA bought 10.5 million shares at an average $42.78 a share in the third quarter, versus 2.8 million shares at an average $35.25 a share in the second quarter. Estimated weighted-average basic common shares declined to 348 million from 353 million.
In the second quarter, APA reported production of about 410,000 barrels of oil equivalent per day, with adjusted production of 347,000 BOE per day. U.S. oil production averaged 123,500 barrels per day. Egypt adjusted production averaged 61,000 BOE per day. The company generated $1.7 billion of net cash from operations, $738 million of free cash flow and $1.8 billion of adjusted EBITDAX, and returned $189 million to shareholders through dividends and share repurchases.
APA raised full-year U.S. oil production guidance to 123,000 barrels per day while maintaining U.S. capital at $1.3 billion, and increased expected 2026 exit run-rate cost savings to $500 million from a prior $450 million target. Net debt was $3.3 billion at the end of the second quarter. It expects to return at least 60% of free cash flow to shareholders in 2026 while also strengthening the balance sheet.
The supplemental package is intended to help investors formulate their own estimates and is not a comprehensive presentation of all factors that will affect third-quarter results. Actual results and the impact of the identified factors may vary and are subject to finalization of the financial reporting process.
The company scheduled a conference call for 10 a.m. Central time on Nov. 5 to discuss third-quarter results, with a webcast from its website and a one-year replay on its investors page.