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Mar 31

APA Q1 2025 Earnings Report

APA delivered strong Q1 2025 results, reporting $347 million in net income and $1.5 billion in adjusted EBITDAX, driven by production growth and capital efficiency gains.

Key Takeaways

APA reported $2.64 billion in total revenue and $347 million in net income for Q1 2025. Adjusted earnings were $385 million, or $1.06 per share, and free cash flow reached $126 million. The company made operational progress across the Permian and Egypt and confirmed a significant discovery in Alaska.

Net income attributable to common stock was $347 million, or $0.96 per diluted share

Adjusted EBITDAX totaled $1.5 billion for the quarter

Free cash flow came in at $126 million

Production averaged 469,000 BOE/d with 398,000 BOE/d on an adjusted basis

Total Revenue
$2.64B
Previous year: $1.95B
+35.1%
EPS
$1.06
Previous year: $0.78
+35.9%
Adjusted EBITDAX
$1.49B
Previous year: $1.24B
+19.8%
Free Cash Flow
$126M
Previous year: $99M
+27.3%
Production BOE/d
469K
Gross Profit
$939M
Previous year: $748M
+25.5%
Cash and Equivalents
$67M
Previous year: $102M
-34.3%
Free Cash Flow
$126M
Previous year: $99M
+27.3%
Total Assets
$18.5B
Previous year: $15B
+23.9%

APA

APA

APA Revenue by Segment

APA Revenue by Geographic Location

Forward Guidance

APA maintained its full-year U.S. oil production guidance while reducing 2025 development capital by $150 million to preserve free cash flow amid commodity price volatility.

Positive Outlook

  • Reduced 2025 development capital guidance by $150 million
  • Efficiency gains allow Permian oil volumes to be held flat with 6.5 rigs
  • Expected 2025 savings raised to $130 million, run-rate to $225 million
  • Increased Egypt gas price realization guidance from drilling success
  • Confirmed Sockeye-2 discovery well with high-quality reservoir in Alaska

Challenges Ahead

  • Reduction in rigs to 6 by end of Q2 may impact activity levels
  • Oil production impacted by 1,000 b/d from weather and third-party downtime
  • Sale of New Mexico Permian assets may reduce full-year output by 12.4 Mboe/d
  • Volatility in commodity prices continues to pose downside risks
  • Capital reallocation from asset sales focused on debt reduction, limiting reinvestment flexibility

Revenue & Expenses

Visualization of income flow from segment revenue to net income