APA

APA Q1 2025 Earnings

Reported May 8, 2025 at 10:08 AM ET · SEC Source

Q1 25 EPS

$1.06

Q1 25 Revenue

$2.64B

vs S&P Since Q1 25

+132.6%

BEATING MARKET

APA +160.3% vs S&P +27.7%

Market Reaction

Did APA Beat Earnings? Q1 2025 Results

APA Corporation delivered a notably stronger first quarter in 2025, with adjusted earnings of $1.06 per diluted share on revenue of $2.64 billion, as accelerated drilling efficiencies across the Permian Basin gave the company more financial flexibili… Read more APA Corporation delivered a notably stronger first quarter in 2025, with adjusted earnings of $1.06 per diluted share on revenue of $2.64 billion, as accelerated drilling efficiencies across the Permian Basin gave the company more financial flexibility than it had anticipated entering the year. The single biggest driver was a dramatic expansion in cost savings, with APA more than doubling its 2025 target to $130 million from a prior $60 million estimate while pushing annualized run-rate savings to $225 million by year-end. That momentum allowed management to cut full-year development capital guidance by $150 million and trim exploration capital by $25 million without sacrificing U.S. Oil production guidance, held firm at 125,000 to 127,000 barrels per day. Subsequent to the quarter, APA agreed to sell its New Mexico Permian assets for $608 million, with proceeds directed primarily toward reducing net debt, which stood at $5.30 billion at quarter-end, reinforcing a broader strategic pivot toward core assets and balance sheet discipline.

Key Takeaways

  • Significant drilling efficiency gains in the Permian Basin reducing capital requirements
  • Strong Egypt gas drilling program outperformance leading to higher gas price realizations
  • Oil production revenues increased to $1.6 billion from $1.4 billion year-over-year
  • Purchased oil and gas sales nearly tripled year-over-year to $597 million
  • Exploration expense declined sharply to $30 million from $148 million (primarily lower dry hole costs)
  • Gain on extinguishment of debt of $142 million before tax
24/7 Wall St

APA YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

APA Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 25

“We have achieved substantial capital savings, particularly due to efficiency gains in Permian drilling, and are also making good progress on both completions and facilities. On the G&A front, we are streamlining our organizational structure and reducing discretionary third-party spend, as we simplify how we manage our assets.”

— John J. Christmann IV, Q1 2025 Earnings Press Release