APA Corporation (APA) FY2025 10-K Review

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETOPERATING DATABUSINESS QUALITYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
REVENUES AND OTHER
Oil, natural gas, and NGL production revenues	7,229	8,196	7,385	1
Purchased oil and gas sales	1,691	1,541	894
Total revenues	8,920	9,737	8,279	2
Derivative instrument gains (losses), net	(53)	(10)	99
Gain on divestitures, net	301	289	8	1
Gains (losses) on previously sold Gulf of America properties	60	(273)	(212)	1
Other, net	(8)	(6)	18
	9,220	9,737	8,192
OPERATING EXPENSES
Lease operating expenses	1,504	1,690	1,436	1
Gathering, processing, and transmission	424	432	334
Purchased oil and gas costs	1,070	1,047	742
Taxes other than income	229	270	207
Exploration	131	313	195
General and administrative	350	372	351	1
Transaction, reorganization, and separation	102	168	15
Depreciation, depletion, and amortization	2,304	2,266	1,540	1
Asset retirement obligation accretion	158	148	116
Impairments	44	1,129	61	2
Financing costs, net	113	367	312	1
	6,429	8,202	5,309
NET INCOME BEFORE INCOME TAXES	2,791	1,535	2,883	1
Current income tax provision	739	1,153	1,338	1
Deferred income tax provision (benefit)	360	(736)	(1,662)	1
NET INCOME INCLUDING NONCONTROLLING INTERESTS	1,692	1,118	3,207
Net income attributable to noncontrolling interest	258	314	352
NET INCOME ATTRIBUTABLE TO COMMON STOCK	1,434	804	2,855	2
Basic earnings per share	$3.99	$2.28	$9.26
Diluted earnings per share	$3.99	$2.27	$9.25	1
Weighted-average diluted shares (millions)	359	353	309	1

Cash flow · $ millions	2025	2024	2023
OPERATING ACTIVITIES
Net income including noncontrolling interests	1,692	1,118	3,207
Unrealized derivative instrument (gains) losses, net	77	8	(51)
Gain on divestitures, net	(301)	(289)	(8)
Exploratory dry hole expense and unproved leasehold impairments	69	236	114
Depreciation, depletion, and amortization	2,304	2,266	1,540
Asset retirement obligation accretion	158	148	116
Impairments	44	1,129	61
Provision for (benefit from) deferred income taxes	360	(736)	(1,662)
Gain from extinguishment of debt	(147)	0	(9)	1
(Gains) losses on previously sold Gulf of America properties	(60)	273	212
Other	57	2	26
CHANGES IN OPERATING ASSETS AND LIABILITIES
Receivables	850	(104)	(157)	2
Inventories	7	(11)	13
Drilling advances and other current assets	223	(56)	269
Deferred charges and other long-term assets	36	11	270
Accounts payable	(365)	81	(84)
Accrued expenses	(199)	(221)	(400)
Deferred credits and noncurrent liabilities	(260)	(235)	(328)
NET CASH PROVIDED BY OPERATING ACTIVITIES	4,545	3,620	3,129	3
INVESTING ACTIVITIES
Additions to oil and gas property	(2,740)	(2,851)	(2,313)	2
Acquisition of Delaware Basin properties	0	0	(24)
Leasehold and property acquisitions	(26)	(60)	(20)	1
Proceeds from asset divestitures	611	1,609	29	1
Proceeds from sale of Kinetik shares	0	428	228
Other, net	2	(50)	(38)
NET CASH USED IN INVESTING ACTIVITIES	(2,153)	(924)	(2,138)
FINANCING ACTIVITIES
Payments on commercial paper and revolving credit facilities, net	(333)	(40)	(194)
Proceeds from term loan facility	0	1,500	0
Payments on term loan facility	(900)	(600)	0	1
Payment on Callon Credit Agreement	0	(472)	0
Fixed-rate debt borrowings	846	0	0	1
Payments on fixed-rate debt	(1,016)	(1,641)	(65)	1
Distributions to noncontrolling interest	(430)	(268)	(238)	1
Dividends paid to APA common stockholders	(360)	(353)	(308)	1
Treasury stock activity, net	(280)	(246)	(329)	1
Other, net	(28)	(38)	(15)
NET CASH USED IN FINANCING ACTIVITIES	(2,501)	(2,158)	(1,149)
Net increase (decrease) in cash and cash equivalents	(109)	538	(158)
Cash and cash equivalents at beginning of year	625	87	245
CASH AND CASH EQUIVALENTS AT END OF PERIOD	516	625	87

Balance sheet · $ millions	2025	2024
CURRENT ASSETS
Cash and cash equivalents	516	625	1
Receivables, net of allowance of $140 and $123	1,062	1,959	2
Other current assets	543	820
	2,121	3,404
PROPERTY AND EQUIPMENT
Oil and gas properties, successful efforts	45,507	44,698
Gathering, processing, and transmission facilities	445	433
Other	536	562
Less: accumulated depreciation, depletion, and amortization	(33,740)	(33,047)
	12,748	12,646
OTHER ASSETS
Decommissioning security for sold Gulf of America properties	21	21
Deferred tax asset	2,328	2,703	1
Deferred charges and other	543	616
TOTAL ASSETS	17,761	19,390
CURRENT LIABILITIES
Accounts payable	871	1,224
Current debt	213	53	1
Other current liabilities	1,487	1,678
	2,571	2,955
LONG-TERM DEBT	4,280	5,991	1
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES
Deferred tax liability	0	14	1
Asset retirement obligation	2,699	2,591
Decommissioning contingency for sold Gulf of America properties	782	929
Other	426	548
	3,907	4,082
EQUITY
Common stock, $0.625 par	308	307
Paid-in capital	12,816	13,153
Accumulated deficit	(721)	(2,155)
Treasury stock, at cost	(6,320)	(6,037)
Accumulated other comprehensive income	10	12
APA SHAREHOLDERS' EQUITY	6,093	5,280
Noncontrolling interest	910	1,082
TOTAL EQUITY	7,003	6,362

Operating data · units as marked	2025	2024	2023
VOLUMES
Total production (Mboe/d)	464.4	454.7	405.0
United States (Mboe/d)	287.5	283.0	217.3
Egypt (Mboe/d)	146.2	137.5	143.4
North Sea (Mboe/d)	30.7	34.2	44.3	1
Annual production (MMboe)	169.5	166.0	147.8	4
REALISED PRICES
Crude oil ($/bbl)	$66.92	$78.08	$80.72	1
Natural gas ($/Mcf)	$2.36	$1.97	$2.91
NGL ($/bbl)	$22.71	$23.37	$21.54
RESERVES
Total proved (MMboe)	1,100	—	—	3
Proved undeveloped (MMboe)	322	—	—	2
Extensions, discoveries and other additions (MMboe)	100	—	—	1
Upward revisions (MMboe)	175	—	—	2
— of which engineering / well performance	138	—	—	2
Divestitures (MMboe)	-19	—	—
SHARE COUNT & PUBLIC FLOAT
Common shares issued, year-end (millions)	492.0	491.6	—
Treasury shares held, year-end (millions)	139.1	126.2	—	1
Shares outstanding, year-end (millions)	352.9	365.4	—	1
Shares outstanding on cover, 31 Jan 2026 (millions)	353.3	—	—
Public float — market value of non-affiliate holdings, 30 Jun ($M)	6,562	—	—

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	25.2% sector median 14.3%	strong
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	-3.4% sector median +0.0%	shrinking
Debt to equity (current debt + long-term debt) ÷ year-end equity	0.74 sector median 0.49	moderate
FCF consistency, 5yr operating cash flow − capital expenditure, per year	positive 5 of 5	consistent
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 31.3% sector median 14.6%	volatile

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$6,562M	10-K cover · as of 2025-06-30
Insider Form 4s, 90d	21 filings · 0 buys / 1 sells	net selling · −$392,392
· Maddox Mark D	SELL $392,392	Form 4 filed 2026-05-22 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
Institutional %	—	needs 13F aggregation — not read yet, never estimated

COMMENTARY6EARNINGS QUALITY6

Cost reduction✓MATCHES

“The Company achieved $350 million in annualized savings across G&A, LOE, and capital as of year-end 2025.”

G&A $372M → $350M−$22M

Lease operating expense $1,690M → $1,504M−$186M

Additions to O&G property $2,851M → $2,740M−$111M

Total of the three named cost lines−$319M

LOE per boe (1,690÷166.0 → 1,504÷169.5) $10.18 → $8.87−12.9%

Production over the same period 166.0 → 169.5 MMboe+2.1%

Unit costs fell while volumes rose, not the arithmetic of selling high-cost barrels. Strongest claim in the filing.

4 LINES TRACED · ITEM 7 · OVERVIEW · P.34

Capital return✗CONTRADICTS

“The Company believes returning 60 percent of free cash flow through dividends and share repurchases creates a good balance for providing near-term cash returns to shareholders…”

Operating cash flow$4,545M

Less additions to O&G property−$2,740M

Less leasehold and property acquisitions−$26M

Free cash flow$1,779M

Dividends paid to APA common$360M

Treasury stock activity, net$280M

Returned to shareholders$640M

Share of free cash flow $640M ÷ $1,779M36.0%

If minority-partner (NCI) distributions are added ($640M + $430M) ÷ $1,779M60.1%

60% is reachable only by counting the $430M paid to the Egypt minority partner (Sinopec's one-third interest) as a shareholder return. It is not one.

6 LINES TRACED · ITEM 7 · OVERVIEW · P.34

Cash generation✗CONTRADICTS

“The Company generated $4.5 billion of cash from operating activities in 2025, which was $925 million or 26 percent higher than 2024… primarily driven by the collection of outstanding receivables.”

Operating cash flow $3,620M → $4,545M+$925M

Receivables movement in the same statement −$104M → +$850M+$954M swing

Receivables release as share of the increase $850M ÷ $925M92%

Balance-sheet receivables $1,959M → $1,062M−$897M

Operating cash flow excluding that swing $3,695M vs $3,620M+2.1%

The arithmetic is exact; the quality is not. Real cash, collected once. Strip the Egypt release and cash flow grew 2.1%, in line with volumes.

3 LINES TRACED · ITEM 7 · OVERVIEW · P.35

Earnings◐PARTLY

“…the Company reported net income attributable to common stock of $1.4 billion, or $3.99 per diluted share, compared to net income of $804 million… primarily the result of $1.1 billion of impairments recorded in 2024.”

Net income to common $804M → $1,434M+$630M

Impairments $1,129M → $44M+$1,085M swing

Impairment swing ÷ net income increase $1,085M ÷ $630M1.72×

Total revenues $9,737M → $8,920M−8.4%

Production revenues $8,196M → $7,229M−11.8%

Realised crude oil $78.08 → $66.92−14.3%

The driver is named, honestly. But the impairment swing exceeds the entire improvement, so underlying earnings fell. The flattering figure leads.

5 LINES TRACED · ITEM 7 · OVERVIEW · P.35

Reserves✗CONTRADICTS

“During 2025, the Company added approximately 100 MMboe from extensions, discoveries, and other additions… realized combined upward revision of previously estimated reserves of 175 MMboe.”

2025 production 464.4 Mboe/d × 365169.5 MMboe

Extensions, discoveries and other additions100

Drill-bit replacement 100 ÷ 169.559%

Upward revisions+175

— of which engineering / well performance138

All-in replacement (100+175) ÷ 169.5162%

Net of divestitures (−19) 256 ÷ 169.5151%

Proved undeveloped share 322 ÷ 1,10029%

Drilling replaced 59% of production. The 162% figure needs revisions, mostly the Company re-estimating its own engineering. No replacement ratio is stated anywhere in the filing.

6 LINES TRACED · ITEMS 1 & 2 · RESERVES · P.14

Leverage✓MATCHES

“The Company ended the year with approximately $4.5 billion of debt, a reduction of approximately $1.6 billion from the end of 2024.”

Current debt + long-term debt, 2024 $53M + $5,991M$6,044M

Current debt + long-term debt, 2025 $213M + $4,280M$4,493M

Reduction−$1,551M

Funded by: term loan repayment−$900M

Funded by: fixed-rate repayments−$1,016M

Offset by: new note issuance+$846M

Divestiture proceeds available$611M

Net debt (debt less cash) $4,493M − $516M$3,977M

$1,551M against a stated ~$1.6B, exact to the dollar. New notes refinanced tendered Apache paper, not new leverage.

7 LINES TRACED · ITEM 7 · OVERVIEW · P.35

Estimate tailwind✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

2024 impairment cut the depreciable base$1,129M

2025 upward reserve revisions raised the denominator+175 MMboe

— of which the Company's own engineering re-estimate138 MMboe

DD&A per boe $2,266M ÷ 166.0 → $2,304M ÷ 169.5 MMboe$13.65 → $13.59 per boe

Production over the same period 166.0 → 169.5 MMboe+2.1%

One estimate, two flattering effects. The 138 MMboe engineering revision lifts reserve replacement and cuts the depletion rate on every future barrel, earnings help from a change of opinion, not a change in the rock. Item 7 discusses neither.

EARNINGS-QUALITY FLAG · 6 LINES TRACED · ITEMS 1 & 2 · RESERVES · P.14 · VS ITEM 7

Non-recurring income✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Gain on divestitures, net$301M

Gains on previously sold Gulf of America properties$60M

Gain from extinguishment of debt$147M

Non-recurring gains, 2025$508M

Share of pre-tax income $508M ÷ $2,791M18.2%

Same measure, 2024 ($289M − $273M + $0M) ÷ $1,535M1.0%

Financing costs, net $367M → $113M−$254M, of which $147M is the debt gain

One-offs went from 1% to 18% of pre-tax income in a year. The $147M debt gain hides inside financing costs, flattering that line's $254M improvement. Ex all three: $2,283M vs $1,519M, up, but not by the headline.

EARNINGS-QUALITY FLAG · 5 LINES TRACED · STATEMENT OF CONSOLIDATED OPERATIONS · F-5

Receivables & DSO✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Days sales outstanding, 2024 $1,959M ÷ $9,737M × 36573.4 days

Days sales outstanding, 2025 $1,062M ÷ $8,920M × 36543.5 days

Change−29.9 days

Cash released into operating cash flow$850M

Share of the year's operating cash-flow increase $850M ÷ $925M92%

Thirty days of receivables collected in one year. Real cash, but DSO cannot fall another thirty, so 2026 cash flow starts $850M behind. Management names the collection; it never says the boost cannot repeat.

EARNINGS-QUALITY FLAG · 4 LINES TRACED · CONSOLIDATED BALANCE SHEET · F-8

Tax quality◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Current income tax provision$739M

Cash income taxes paid, net of refunds$999M

Cash paid above the book charge$260M

Deferred tax provision −$736M → $360M+$1,096M swing

Deferred tax asset $2,703M → $2,328M−$375M

Cash taxes ran $260M above the book charge; the deferred tax asset fell $375M. Egypt's in-country payment schedule explains part of it, but reported earnings are running ahead of taxes actually paid, and the cushion is thinning. One to keep watching, not to act on.

EARNINGS-QUALITY FLAG · 4 LINES TRACED · STATEMENT OF CONSOLIDATED OPERATIONS · F-5 · AND SUPPLEMENTARY CASH FLOW DATA

Share count timing◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Weighted-average diluted shares 353M → 359M shares+1.7%

Shares outstanding at year-end 365.4M → 352.9M shares−3.4%

Net income to common $804M → $1,434M+78.4%

Diluted EPS $2.27 → $3.99+75.8%

Gap between the two growth rates−2.6pp

The two counts move apart because the all-stock Callon deal closed 1 April 2024: the 2024 average carries nine months of those shares, 2025 carries twelve. Earnings per share understates income growth this year and will flatter it next year. A timing effect, not a performance one.

EARNINGS-QUALITY FLAG · 5 LINES TRACED · STATEMENT OF CONSOLIDATED OPERATIONS · F-5

Differential disclosure✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Fields holding 15%+ of total proved reserves, FY20251 field

Same measure, FY2024 and FY20230 fields

Proved undeveloped share of proved 322 ÷ 1,10029%

North Sea production 34.2 → 30.7 Mboe/d−10.4%

Mentions of any of the above in Item 7 overviewnone

Three facts live in the property and risk sections, none in Item 7: single-field concentration crossed 15% for the first time in three years, PUD is 29% of proved, North Sea production ends before 2030. Each is disclosed where the rules require. None appears where a reader looks first.

EARNINGS-QUALITY FLAG · 4 LINES TRACED · ITEMS 1 & 2 · RESERVES · P.13 · ABSENT FROM ITEM 7

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Total debt →Return on equity →Days sales outstanding →

Terms and acronyms used on this page

Volumes & reserves

boeBarrel of oil equivalent. Natural gas is converted at 6 Mcf to 1 barrel on an energy basis. That ratio is an energy convention, not a price ratio — a boe of gas is worth far less than a boe of oil.

b/d · Mboe/d · MMboe · BboeBarrels per day · thousand boe per day · million boe · billion boe.

Mcf · MMBtuThousand cubic feet of gas · million British thermal units. Both are gas volume/energy measures.

NGLNatural gas liquids — ethane, propane, butanes and condensate separated from the gas stream. Priced well below crude.

Proved reservesVolumes reasonably certain to be recoverable under existing economic and operating conditions, at SEC-prescribed pricing (12-month first-day-of-month average, held flat).

PUDProved undeveloped. Booked as proved but still needing capital to bring on. A high PUD share means more of the reserve base is a spending commitment rather than a producing asset.

RevisionsChanges to previously booked reserve estimates from pricing or from re-estimating engineering and well performance. A revision is a change of opinion about existing barrels, not a new discovery.

Drill-bit replacementDerived on this page: new barrels from extensions and discoveries divided by barrels produced. Excludes revisions and acquisitions. Below 100% means drilling did not replace what was produced.

Successful effortsThe accounting method APA uses. Exploration costs are expensed unless a well finds proved reserves — the more conservative of the two permitted methods.

Income statement & cash flow

LOELease operating expense — the recurring cost of running producing wells. Per-boe LOE is the standard way to tell real cost reduction from the effect of selling high-cost barrels.

ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

NCINoncontrolling interest — the share of a consolidated subsidiary owned by someone else. Here, Sinopec's one-third of the Egypt joint venture. NCI income and NCI distributions belong to that partner, not to APA shareholders.

Balance sheet & market

Net debtTotal debt less cash and equivalents. Derived on this page.

Treasury stockShares the company has repurchased and holds rather than cancelled. Issued shares less treasury shares equals shares outstanding.

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

AffiliateOfficers, directors and large holders. Their holdings are excluded from public float and are disclosed in the proxy statement, not the 10-K.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

Keep readingWHERE AN ANALYST GOES NEXT

Peers in Energy →Strongest reviewed · HD 100 →Weakest reviewed · SO 45 →

Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from APA Corporation's Form 10-K for FY2025 (accession 0001841666-26-000015), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. APA is not in the tracked book. Price, YTD and the five checks populate from /api/dashboard the moment the ticker is added — this page computes none of them.