APA Corp Q2 Earnings Beat Estimates on Higher Oil Prices

Meanwhile, APA continues to reward its shareholders, having paid out $189 million through dividends and share repurchases during the second quarter of 2026.

APA’s Q2 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 Zacks Rank #3 (Hold) company registered a free cash flow of $738 million compared to $134 million a year ago.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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%.

2026 Guidance by APA

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.

Important Earnings at a Glance

While we have discussed APA’s second-quarter results in detail, let us take a look at three other key reports in this space.

Expand Energy Corporation EXE reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.

As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%.

NOV Inc. NOV reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.

The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.

As of June 30, 2026, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%.

The Williams Companies, Inc. WMB reported second-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. However, the bottom line increased from the year-ago period’s level of 46 cents, driven by better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P and West segments.

The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $2 million. The figure increased by 9.8% from the year-ago quarter’s reported revenues. This can be attributed to higher service revenues and increased product sales.

As of June 30, 2026, the company had cash and cash equivalents of $203 million and long-term debt of $28.1 billion, with a debt-to-capitalization of 64.7%.

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