10-Q · May 7, 2026
APA Corporation reported strong financial performance for Q1 2026, with revenues of $2.215 billion and EPS of $1.38, both surpassing analyst expectations. The company highlighted a commitment to reducing costs and…
Earnings analysis · 10-Q
APA earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
APA delivered strong Q3 2026 operating results, with $2.812 billion of revenue and $1.94 of adjusted EPS, including a substantial year-over-year improvement and a consensus beat. Cash generation remained robust at $699…
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APA delivered strong Q3 2026 operating results, with $2.812 billion of revenue and $1.94 of adjusted EPS, including a substantial year-over-year improvement and a consensus beat. Cash generation remained robust at $699 million of free cash flow and $1.38 billion of operating cash flow, although both declined sequentially from Q2. Management raised the 2026 free cash flow and U.S. oil production outlooks, supporting a bullish trend despite commodity-price sensitivity and foreign-exchange exposure. The filing reported no material changes to the risk factors disclosed in the prior 10-K and 10-Q.
Reported figures
- Earnings per share
- $1.94
What stood out
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Revenue accelerated sharply
Revenue was $2.812 billion, up from $2.37 billion in Q2 2026 and $2.12 billion in Q3 2025, increases of approximately 18.6% sequentially and 32.7% year over year.
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EPS beat estimates, rose year over year
Adjusted EPS was $1.94, above the $1.56 consensus estimate and up from $0.57 in Q3 2025, though down from $2.11 in Q2 2026.
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Strong cash generation
Free cash flow was $699 million, supported by $1.38 billion of operating cash flow and production above guidance; FCF was below $1.14 billion in Q2 2026 and $741 million in Q3 2025.
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Higher commodity realizations
Commodity realizations improved materially year over year: crude oil rose 36% to $92.02 per barrel, natural gas rose 28% to $2.87 per Mcf, and NGLs rose 27% to $26.17 per barrel.
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Aggressive share repurchases
The company repurchased 10,520,547 shares during the quarter at an average price of $42.78 and received authorization for an additional 40 million shares in September 2026.
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Debt structure limits near-term rate risk
As of September 30, 2026, all $3.3 billion of outstanding notes and debentures were fixed-rate debt, with a weighted-average interest rate of 5.85%; no commercial paper or revolver borrowings were outstanding.
What to watch
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High commodity-price sensitivity
The filing states that revenues, earnings, cash flow, capital investments and future growth are highly dependent on volatile commodity prices. At Q3 2026 production levels, a $1.00 per barrel change in realized oil prices would change quarterly revenue by approximately $20 million, while a $0.10 per Mcf gas-price change would change revenue by approximately $8 million.
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Debt refinancing exposure
The company had $3.3 billion of outstanding fixed-rate notes and debentures as of September 30, 2026, at a weighted-average interest rate of 5.85%; future debt issuances or borrowings could increase interest costs if rates remain elevated.
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North Sea FX and decommissioning risk
North Sea decommissioning obligations create foreign-exchange exposure. Outstanding British-pound hedges had a notional amount of £36 million; a 10% weakening of the pound would produce a $4 million foreign-currency loss, versus a $2 million gain from a 10% strengthening.
Management's outlook
The filing itself does not provide numeric EPS or revenue guidance. The associated quarterly outlook increased full-year 2026 free cash flow to approximately $2.9 billion, up $600 million from the August update; full-year U.S. oil production was raised to 124,000 barrels per day from initial guidance of 120,000-122,000 barrels per day, and the net debt target was lowered to $2 billion.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.