Key facts
- APA Corp. reported an adjusted profit of $1.89 per share, exceeding the analyst average estimate of $1.87.
- The company's realized oil price per barrel increased to $98.24 from $65.58 a year ago.
- Quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day.
- APA raised its full-year U.S. oil production forecast to 123,000 bpd.
- The company expects to achieve approximately $500 million in annualized savings by the end of 2026.
- APA has reduced its debt by $2.3 billion since year-end 2024, resulting in over $155 million in annualized interest savings.
APA Corp., a U.S. shale producer, surpassed Wall Street's second-quarter profit expectations, driven by an increase in crude oil prices. The company's realized price for each barrel of oil produced rose to $98.24 from $65.58 a year prior. Despite a nearly 12% decline in quarterly production to 410,000 barrels of oil equivalent per day, APA's financial results were bolstered by higher commodity prices. Benchmark Brent crude averaged $89.62 a barrel during the quarter, influenced by concerns over Middle East supply disruptions and shipping through the Strait of Hormuz. APA posted an adjusted profit of $1.89 per share, exceeding the consensus estimate of $1.87. The company has increased its full-year U.S. oil production forecast to 123,000 bpd from 122,000 bpd. Furthermore, APA anticipates achieving approximately $500 million in annualized savings by the end of 2026, an increase from its previous target. The company has also reduced its debt by $2.3 billion since the end of 2024, leading to annualized interest savings of over $155 million, with net debt standing at $3.3 billion at the quarter's end. ConocoPhillips also reported beating its second-quarter adjusted profit expectations, driven by enhanced commodity prices and reduced expenses.