APA Reports Q1 2026 Results and Raises Full-Year Oil Production Outlook

APA Corporation discussed its first-quarter 2026 financial and operational results during an earnings conference call on Thursday. The company reported capital spending and operating costs below guidance. Oil production in the Permian exceeded guidance while gas volumes were curtailed due to weak Waha pricing.

the company said gas development on newly acquired acreage supported progress toward 2026 production targets. It also noted that water-flood investments and an improved workover program moderated base-decline rates. In the Permian, APA stated it has repositioned the asset base to be entirely unconventional and established more than a decade of economic inventory.

The company generated nearly half a billion dollars in free cash flow during the quarter. It said it is prioritizing free cash flow over incremental activity and is maintaining upstream capital and lease-operating-expense guidance. APA raised its full-year oil production outlook to 122,000 barrels per day.

Adjusted volume guidance was lowered to reflect production-sharing-contract impacts from higher commodity prices. The company reiterated its $3 billion net-debt target and said it remains focused on cost reductions and capital discipline across its Permian and Egypt assets.