APA Corporation Reports Q4 Net Income Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy APA?
Source: NASDAQ.COM
- Net Income Decline: APA Corporation reported a fourth-quarter net income of $279 million, or $0.79 per diluted share, down from $354 million and $0.96 per share in the prior year, indicating a weakening profitability that may affect investor confidence.
- Adjusted Earnings: Adjusted for certain items, fourth-quarter earnings totaled $324 million or $0.91 per diluted share, which, while slightly better than expected, still fell short of market expectations, potentially leading to stock price volatility.
- Production Data: The reported production for the fourth quarter was 460,000 BOE per day, with adjusted production at 387,000 BOE per day, reflecting a decline in production efficiency that could impact future market competitiveness.
- Future Capital Expenditure Plans: The company anticipates total upstream capital of $2.1 billion for 2026, a 10% reduction compared to 2025, suggesting a cautious approach in response to market uncertainties and potential challenges ahead.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy APA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on APA
Wall Street analysts forecast APA stock price to fall
19 Analyst Rating
4 Buy
10 Hold
5 Sell
Hold
Current: 28.620
Low
21.00
Averages
26.17
High
40.00
Current: 28.620
Low
21.00
Averages
26.17
High
40.00
About APA
APA Corporation is an independent energy company. The Company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and that explore for oil and natural gas offshore Suriname. The Company’s upstream business has oil and gas operations in three geographic areas: the United States, Egypt and offshore the United Kingdom in the North Sea (North Sea). It also has active exploration and appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations. It maintains a diversified asset portfolio, including conventional and unconventional, onshore and offshore, oil and natural gas exploration and production interests. In the United States, operations are primarily focused on the Permian Basin of West Texas. The Company has conventional onshore assets in Egypt’s Western Desert, and offshore assets on the United Kingdom’s Continental Shelf.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
APA Corporation Reports Q4 Net Income Decline
- Net Income Decline: APA Corporation reported a fourth-quarter net income of $279 million, or $0.79 per diluted share, down from $354 million and $0.96 per share in the prior year, indicating a weakening profitability that may affect investor confidence.
- Adjusted Earnings: Adjusted for certain items, fourth-quarter earnings totaled $324 million or $0.91 per diluted share, which, while slightly better than expected, still fell short of market expectations, potentially leading to stock price volatility.
- Production Data: The reported production for the fourth quarter was 460,000 BOE per day, with adjusted production at 387,000 BOE per day, reflecting a decline in production efficiency that could impact future market competitiveness.
- Future Capital Expenditure Plans: The company anticipates total upstream capital of $2.1 billion for 2026, a 10% reduction compared to 2025, suggesting a cautious approach in response to market uncertainties and potential challenges ahead.
See More
APA Corporation Announces 2026 Capital Budget and Q4 Earnings Results
- Earnings Beat: APA Corporation reported a Q4 non-GAAP EPS of $0.91, exceeding expectations by $0.27, demonstrating effective cost management despite a 26.6% year-over-year revenue decline to $1.99 billion, which still surpassed market expectations by $120 million, reflecting resilience in profitability.
- Capital Budget Adjustment: The company plans to invest $2.1 billion in upstream capital for 2026, a 10% reduction from 2025, indicating a strategic optimization of capital allocation in response to ongoing cost savings and reduced Permian activity amidst market fluctuations.
- Production Outlook Improvement: U.S. oil production is expected to average between 120,000 and 122,000 barrels per day, showing a slight improvement from the preliminary outlook provided in November, suggesting positive progress in production efficiency and resource management that could enhance future revenue growth.
- Permian Investment Focus: Permian development capital is projected at $1.2 billion, with an additional $100 million allocated for projects aimed at sustainably reducing lease operating expenses over time, which will help enhance long-term profitability and strengthen the company's competitive position in the region.
See More
Major Earnings Reports Expected After the Bell on Wednesday
- Major Earnings Preview: After the market closes on Wednesday, earnings reports from companies like NVIDIA, Salesforce, and Snowflake are expected, with market participants closely monitoring their performance, which could significantly impact stock prices.
- Market Reaction Anticipation: Investors are adopting a cautious stance ahead of the earnings releases, particularly regarding NVIDIA's results, which may influence its stock trajectory, highlighting the market's sensitivity to tech stocks.
- Additional Earnings Releases: In addition to the major players, numerous smaller firms, including IonQ and up to 100 others, will also report earnings on the same day, potentially triggering widespread market volatility.
- Earnings Season Calendar: Seeking Alpha has provided a comprehensive earnings season calendar, assisting investors in tracking upcoming earnings reports to ensure timely access to critical information for informed investment decisions.
See More
APA Corporation Set to Announce Q4 Earnings on February 25
- Earnings Announcement: APA Corporation is scheduled to release its Q4 earnings on February 25 after market close, with consensus EPS estimate at $0.64, reflecting a 19% year-over-year decline, and revenue expected at $1.87 billion, indicating potential profitability challenges.
- Historical Performance: Over the past two years, APA has beaten EPS estimates 63% of the time and revenue estimates 75% of the time, suggesting a degree of stability and market confidence in the company's financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 7 upward revisions and 14 downward revisions, while revenue estimates experienced no upward revisions and 7 downward revisions, reflecting analysts' cautious outlook and divergence regarding the company's future performance.
- Market Reaction: Despite Barclays downgrading APA to a 'Sell' equivalent, APA and CNX Resources are on the rise, indicating market recognition of its strong free cash flow, which may present an attractive opportunity for investors.
See More
Stocks to Keep an Eye on This Week: Nvidia, Warner Bros., Berkshire Hathaway, Home Depot, and Others
Market Performance: The Nasdaq Composite and S&P 500 indexes ended their multi-week losing streaks, increasing by 1.5% and 1.1%, respectively.
Supreme Court Ruling: A significant factor in the market rise was the Supreme Court's decision to strike down some of President Trump's tariffs.
White House Response: Despite the ruling, the White House announced plans to explore alternative methods to enforce its tariff policy.
Investor Sentiment: The combination of the court ruling and the White House's response influenced investor sentiment positively, contributing to the uptick in equities.
See More
Trump's New Tariff Plan Triggers Market Volatility
- Tariff Policy Shift: Following the Supreme Court ruling, Trump plans to impose a new 10% global tariff, which could lead to the U.S. needing to refund billions in tariffs to importers; the market reacted with initial gains followed by losses, reflecting investor uncertainty about future trade relations.
- Legal Challenge Outlook: The Supreme Court's ruling that Trump wrongfully invoked the International Emergency Economic Powers Act to implement tariffs pushes the refund issue back to lower courts, indicating that firms will face lengthy legal processes to obtain refunds, potentially impacting their cash flow and investment decisions.
- Cautious Market Sentiment: While geopolitical risks have not historically impacted the stock market significantly, investors may reduce exposure as stocks approach all-time highs, especially with the upcoming Nvidia earnings report raising concerns about potential disappointments, leading to heightened market tension.
- Economic Stimulus Expectations: Despite uncertainties, investors remain hopeful that the fiscal stimulus from last year's legislation will begin to take effect in the coming months, potentially alleviating signs of economic weakness and supporting long-term market growth.
See More
APA Corporation Reports Q4 Net Income Decline
- Net Income Decline: APA Corporation reported a fourth-quarter net income of $279 million, or $0.79 per diluted share, down from $354 million and $0.96 per share in the prior year, indicating a weakening profitability that may affect investor confidence.
- Adjusted Earnings: Adjusted for certain items, fourth-quarter earnings totaled $324 million or $0.91 per diluted share, which, while slightly better than expected, still fell short of market expectations, potentially leading to stock price volatility.
- Production Data: The reported production for the fourth quarter was 460,000 BOE per day, with adjusted production at 387,000 BOE per day, reflecting a decline in production efficiency that could impact future market competitiveness.
- Future Capital Expenditure Plans: The company anticipates total upstream capital of $2.1 billion for 2026, a 10% reduction compared to 2025, suggesting a cautious approach in response to market uncertainties and potential challenges ahead.
See More
APA Corporation Announces 2026 Capital Budget and Q4 Earnings Results
- Earnings Beat: APA Corporation reported a Q4 non-GAAP EPS of $0.91, exceeding expectations by $0.27, demonstrating effective cost management despite a 26.6% year-over-year revenue decline to $1.99 billion, which still surpassed market expectations by $120 million, reflecting resilience in profitability.
- Capital Budget Adjustment: The company plans to invest $2.1 billion in upstream capital for 2026, a 10% reduction from 2025, indicating a strategic optimization of capital allocation in response to ongoing cost savings and reduced Permian activity amidst market fluctuations.
- Production Outlook Improvement: U.S. oil production is expected to average between 120,000 and 122,000 barrels per day, showing a slight improvement from the preliminary outlook provided in November, suggesting positive progress in production efficiency and resource management that could enhance future revenue growth.
- Permian Investment Focus: Permian development capital is projected at $1.2 billion, with an additional $100 million allocated for projects aimed at sustainably reducing lease operating expenses over time, which will help enhance long-term profitability and strengthen the company's competitive position in the region.
See More
Major Earnings Reports Expected After the Bell on Wednesday
- Major Earnings Preview: After the market closes on Wednesday, earnings reports from companies like NVIDIA, Salesforce, and Snowflake are expected, with market participants closely monitoring their performance, which could significantly impact stock prices.
- Market Reaction Anticipation: Investors are adopting a cautious stance ahead of the earnings releases, particularly regarding NVIDIA's results, which may influence its stock trajectory, highlighting the market's sensitivity to tech stocks.
- Additional Earnings Releases: In addition to the major players, numerous smaller firms, including IonQ and up to 100 others, will also report earnings on the same day, potentially triggering widespread market volatility.
- Earnings Season Calendar: Seeking Alpha has provided a comprehensive earnings season calendar, assisting investors in tracking upcoming earnings reports to ensure timely access to critical information for informed investment decisions.
See More
APA Corporation Set to Announce Q4 Earnings on February 25
- Earnings Announcement: APA Corporation is scheduled to release its Q4 earnings on February 25 after market close, with consensus EPS estimate at $0.64, reflecting a 19% year-over-year decline, and revenue expected at $1.87 billion, indicating potential profitability challenges.
- Historical Performance: Over the past two years, APA has beaten EPS estimates 63% of the time and revenue estimates 75% of the time, suggesting a degree of stability and market confidence in the company's financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 7 upward revisions and 14 downward revisions, while revenue estimates experienced no upward revisions and 7 downward revisions, reflecting analysts' cautious outlook and divergence regarding the company's future performance.
- Market Reaction: Despite Barclays downgrading APA to a 'Sell' equivalent, APA and CNX Resources are on the rise, indicating market recognition of its strong free cash flow, which may present an attractive opportunity for investors.
See More
Stocks to Keep an Eye on This Week: Nvidia, Warner Bros., Berkshire Hathaway, Home Depot, and Others
Market Performance: The Nasdaq Composite and S&P 500 indexes ended their multi-week losing streaks, increasing by 1.5% and 1.1%, respectively.
Supreme Court Ruling: A significant factor in the market rise was the Supreme Court's decision to strike down some of President Trump's tariffs.
White House Response: Despite the ruling, the White House announced plans to explore alternative methods to enforce its tariff policy.
Investor Sentiment: The combination of the court ruling and the White House's response influenced investor sentiment positively, contributing to the uptick in equities.
See More
Trump's New Tariff Plan Triggers Market Volatility
- Tariff Policy Shift: Following the Supreme Court ruling, Trump plans to impose a new 10% global tariff, which could lead to the U.S. needing to refund billions in tariffs to importers; the market reacted with initial gains followed by losses, reflecting investor uncertainty about future trade relations.
- Legal Challenge Outlook: The Supreme Court's ruling that Trump wrongfully invoked the International Emergency Economic Powers Act to implement tariffs pushes the refund issue back to lower courts, indicating that firms will face lengthy legal processes to obtain refunds, potentially impacting their cash flow and investment decisions.
- Cautious Market Sentiment: While geopolitical risks have not historically impacted the stock market significantly, investors may reduce exposure as stocks approach all-time highs, especially with the upcoming Nvidia earnings report raising concerns about potential disappointments, leading to heightened market tension.
- Economic Stimulus Expectations: Despite uncertainties, investors remain hopeful that the fiscal stimulus from last year's legislation will begin to take effect in the coming months, potentially alleviating signs of economic weakness and supporting long-term market growth.
See More
