APA reports $177 million gain on oil and gas transactions in Q3

HOUSTON - APA Corporation (NASDAQ:APA), which maintains a "GREAT" financial health score according to InvestingPro analysis, reported a net gain of $177 million on oil and gas purchases and sales before tax during the third quarter of 2025, according to a supplemental information release issued Wednesday. The company, currently trading below its Fair Value, generated $9.8 billion in revenue over the last twelve months.

The company disclosed average realized prices in the U.S. of $66.00 per barrel for oil, $20.00 per barrel for natural gas liquids (NGL), and $0.70 per thousand cubic feet (Mcf) for natural gas. International prices were higher at $68.50 per barrel for oil, $40.00 per barrel for NGL, and $4.20 per Mcf for natural gas.

APA received substantial payments from the Egyptian General Petroleum Corporation (EGPC) during the third quarter, bringing Egypt receivables to normalized levels. The company subsequently made $173 million in distributions to its non-controlling interest partner in Egypt, compared to $126 million and $91 million in the first and second quarters respectively.

The company curtailed approximately 20 million cubic feet per day of U.S. natural gas production and 1,400 barrels per day of U.S. natural gas liquids production during the quarter in response to weak or negative Waha hub prices.

APA repurchased 3.1 million shares at an average price of $20.78 per share during the third quarter, with an estimated weighted-average basic common shares of 357 million for the period. The company’s attractive valuation metrics, including a P/E ratio of 8.3 and an impressive free cash flow yield of 18%, suggest potential upside for investors. Additionally, APA offers a competitive 4% dividend yield, having maintained dividend payments for 55 consecutive years.

The company reported Egypt tax barrels at 37-38 thousand barrels of oil equivalent per day and dry hole costs before tax between $4-$6 million.

APA will host a conference call to discuss its complete third-quarter 2025 results on November 6.

The information was provided in a press release statement to assist investors and analysts in formulating estimates ahead of the company’s full quarterly report.

In other recent news, APA Corporation has declared a regular cash dividend of 25 cents per share, payable on November 21, 2025, to stockholders of record as of October 22, 2025. Raymond James has raised its price target for APA to $28 from $26, maintaining an Outperform rating, noting the company’s improved production and cash flow metrics. Additionally, Benchmark has reiterated its Buy rating and $33 price target for APA, citing significant improvements in business operations and a favorable exploration outlook. Benchmark adjusted its third-quarter earnings per share estimate to $0.88, slightly reducing its EBITDA forecast to $1.22 billion, both figures aligning closely with consensus estimates. Meanwhile, Tamboran Resources Corporation has secured a Final Investment Decision for its Shenandoah South Pilot Project in Australia’s Beetaloo Basin, with first gas sales anticipated by mid-2026. The project has obtained necessary commercial agreements and approvals, including those from Native Title Holders and the Northern Territory Government. These developments reflect ongoing strategic efforts and financial planning within the energy sector.

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