Exhibit 99.1
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NEWS RELEASE
APA Corporation Announces Second-Quarter 2025
Financial and Operational Results

Key Takeaways
•Reported production of 465,000 barrels of oil equivalent (BOE) per day; adjusted production excluding Egypt noncontrolling interest and tax barrels was 394,000 BOE per day;
•Exceeded second-quarter reported production guidance in all three operating regions while delivering global upstream capital in line with guidance;
•Initiated Permian rig count reduction from eight to six during the second quarter due to a step change in drilling efficiencies; now expect to keep Permian volumes flat with six rigs, down from six and a half rigs mentioned in May;
•Accelerated three-year cost reduction initiatives, targeting to achieve $350 million in run-rate savings in 2026 instead of by year-end 2027; raised 2025 in-year and year-end run-rate savings targets;
•Reduced net debt by more than 15% during the quarter while returning $140 million to shareholders through dividends and share repurchases; and
•Secured presidential approval for the direct award of approximately 2 million acres of additional leasehold in Egypt, increasing footprint by more than 35%.

HOUSTON, Aug. 6, 2025 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the second quarter of 2025.

APA reported net income attributable to common stock of $603 million, or $1.67 per diluted share. When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were $313 million, or $0.87 per diluted share. Net cash provided by operating activities was $1.2 billion and adjusted EBITDAX was $1.3 billion.

“Our strong second-quarter results reflect the continued momentum across our entire portfolio as a result of the hard work and dedication of the APA team,” said John J. Christmann IV, CEO of APA Corporation. “In the Permian, our progress is evident in the numbers, where we exceeded production guidance while reducing our rig count by 25% due to continued efficiency gains in the field. In Egypt, we exceeded our quarterly gas production guidance and have once again increased our expectations for the gas program in the second half of the year. As a testament to our ongoing partnership with the country of Egypt, we have secured presidential approval for the direct award of approximately 2 million additional acres, unlocking a material amount of prospective oil and gas resource that we will begin drilling by the end of the year.”

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APA CORPORATION ANNOUNCES SECOND-QUARTER 2025
FINANCIAL AND OPERATIONAL RESULTS — PAGE 2 of 6
Second-Quarter summary

Second-quarter reported production was 465,000 BOE per day and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 394,000 BOE per day. U.S. oil production was 124,000 barrels per day; exceeding guidance set in May despite a slight impact from the New Mexico asset sale that closed in mid-June. Egypt reported production was also ahead of guidance at 144,000 BOE per day, driven by the strong performance of recent gas discoveries and the company’s ability to continue increasing utilization of existing infrastructure.

During the quarter, APA initiated its plans to reduce Permian rig count from eight to six, reflecting a sustained step-change in drilling efficiencies. The company now believes it can hold go-forward Permian oil production flat at six rigs, a reduction from the six and a half rigs stated in May. Despite the 25% reduction in rig count, the company expects to end the year with a higher inventory of drilled-uncompleted wells than originally assumed in February, due to rapidly increasing drilling speeds. Sustained capital efficiency improvements in the Permian are driving a $130 million reduction in original Permian capital guidance, while maintaining original oil production guidance, adjusted for the New Mexico asset sale, which closed in mid-June.

G&A and lease operating expenses were considerably below guidance, while upstream capital investment was in line.

Shareholder returns and net debt reduction update

During the quarter, APA returned $140 million to shareholders through its base dividend and share repurchase program. The company also reduced net debt by over $850 million, supported by proceeds from the New Mexico asset sale and positive working capital inflows, primarily associated with payments from Egypt.

To emphasize the ongoing commitment to a strong balance sheet, APA is initiating a long-term net debt target of $3 billion. This target reflects the company’s confidence in the durability of its cash flows, the strength of its asset base, and a commitment to maintain an investment grade credit profile through commodity cycles. The company plans to continue its balanced capital allocation approach and remains committed to returning 60% of free cash flow to shareholders through base dividends and share repurchases.


APA CORPORATION ANNOUNCES SECOND-QUARTER 2025
FINANCIAL AND OPERATIONAL RESULTS — PAGE 3 of 6
Cost reduction initiatives

Following strong performance in the first half of the year, APA is outpacing its three-year cost reduction targets and now expects to achieve $350 million in run-rate savings in 2026, compared to its prior goal of year-end 2027. The company also increased its 2025 realized savings target by more than 50% from $130 million to $200 million and raised the year-end run-rate savings target from $225 million to $300 million. The acceleration in the reduction of controllable spend is driven by capital efficiency gains in both the Permian and Egypt, as well as further improvements to the company’s overhead cost structure.

“At the start of this year, we set forth some important goals for reducing controllable spend over the next three years,” continued Christmann. “These initiatives are progressing very well, and we are on the path to achieving significant and lasting improvements to our cost structure. We see considerable opportunities to further streamline our business and simplify the way we operate. Given the magnitude of these opportunities, it is clear we have upside to our three-year goal.”

GranMorgu project update

In Suriname, full-year 2025 capital guidance for the development of the 220,000 barrels of oil per day GranMorgu project was raised to $275 million, reflecting additional milestone payments expected in the second half of the year; total project costs remain unchanged. APA’s carried interest structure continues to support favorable project economics. APA and its partner, TotalEnergies, remain on track for first oil from Suriname Block 58 in mid-2028.

“I would like to commend our partner, TotalEnergies, on their execution of the GranMorgu project since announcing FID last fall,” Christmann said. “Project costs remain unchanged, and we remain on track for first oil by the middle of 2028,” he concluded.


APA CORPORATION ANNOUNCES SECOND-QUARTER 2025
FINANCIAL AND OPERATIONAL RESULTS — PAGE 4 of 6
2025 Sustainability Report

The company recently released its 2025 Sustainability Publications. This year, APA simplified its reporting into two documents: “Our Approach to Sustainability” details the ongoing sustainability programs and initiatives, and the “2025 Sustainability Progress Report” contains progress on 2024 goals, annual highlights, key performance data and new goals for 2025.


Conference call

APA will host a conference call to discuss second-quarter 2025 results at 10 a.m. Central time, Thursday, Aug. 7. The conference call will be webcast from APA’s website, www.apacorp.com and investor.apacorp.com. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.

About APA

APA Corporation owns consolidated 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 and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

Additional information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow (non-GAAP financial measures) to GAAP measures and information regarding adjusted production. APA’s quarterly supplement is available at http://www.apacorp.com/financialdata.

Non-GAAP financial measures

APA’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.


APA CORPORATION ANNOUNCES SECOND-QUARTER 2025
FINANCIAL AND OPERATIONAL RESULTS — PAGE 5 of 6
Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, cost reductions, rig counts, asset sales, monetizations and the timing of first oil in Suriname. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2024, and in our quarterly reports on Form 10-Q for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.


APA CORPORATION ANNOUNCES SECOND-QUARTER 2025
FINANCIAL AND OPERATIONAL RESULTS — PAGE 6 of 6
Cautionary note to investors

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms. APA may use certain terms in this news release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2024, available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 200, Houston, TX 77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.

Contacts

Investor: (281) 302-2286
Media:  (713) 296-7276
Website: www.apacorp.com

APA-F

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APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
(In millions, except per share data)

For the Quarter EndedFor the Six Months Ended
June 30,June 30,
2025202420252024
REVENUES AND OTHER:
Oil, natural gas, and natural gas liquids production revenues
Oil revenues$1,381 $1,907 $2,981 $3,339 
Natural gas revenues184 135 417 311 
Natural gas liquids revenues153 159 359 299 
1,718 2,201 3,757 3,949 
Purchased oil and gas sales460 342 1,057 545 
Total revenues2,178 2,543 4,814 4,494 
Derivative instrument gains (losses), net138 (3)110 (7)
Gain on divestitures, net282 276 280 283 
Loss on previously sold Gulf of America properties— (17)— (83)
Other, net14 (7)20 8 
2,612 2,792 5,224 4,695 
OPERATING EXPENSES:
Lease operating expenses367 460 774 798 
Gathering, processing, and transmission104 121 208 205 
Purchased oil and gas costs304 210 778 373 
Taxes other than income54 78 128 135 
Exploration43 71 73 219 
General and administrative66 85 164 178 
Transaction, reorganization, and separation11 115 48 142 
Depreciation, depletion, and amortization:
Oil and gas property and equipment523 582 1,159 1,001 
Other assets7 6 14 17 
Asset retirement obligation accretion39 36 78 76 
Financing costs, net66 100 9 176 
1,584 1,864 3,433 3,320 
NET INCOME BEFORE INCOME TAXES1,028 928 1,791 1,375 
Current income tax provision232 285 538 585 
Deferred income tax provision (benefit)131 23 170 (42)
NET INCOME INCLUDING NONCONTROLLING INTERESTS665 620 1,083 832 
Net income attributable to noncontrolling interest62 79 133 159 
NET INCOME ATTRIBUTABLE TO COMMON STOCK$603 $541 $950 $673 
NET INCOME PER COMMON SHARE:
Basic$1.67$1.46$2.62$2.00
Diluted$1.67$1.46$2.62$2.00
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic361371362337
Diluted361372362337
DIVIDENDS DECLARED PER COMMON SHARE$0.25$0.25$0.50$0.50
Page 1

APA CORPORATION
PRODUCTION INFORMATION

For the Quarter Ended% ChangeFor the Six Months Ended
June 30,March 31,June 30,2Q25 to 1Q252Q25 to 2Q24June 30,June 30,
20252025202420252024
OIL VOLUME - Barrels per day
United States123,725 125,124 139,361 (1)%(11)%124,420 111,441 
Egypt (1,2)
86,210 86,173 87,702 —%(2)%86,192 87,235 
North Sea25,309 25,206 26,586 —%(5)%25,258 28,190 
Total (1)
235,244 236,503 253,649 (1)%(7)%235,870 226,866 
NATURAL GAS VOLUME - Mcf per day
United States519,276 574,736 510,708 (10)%2%546,853 477,223 
Egypt (1, 2)
345,649 317,209 273,077 9%27%331,507 281,652 
North Sea29,174 31,606 51,854 (8)%(44)%30,383 52,229 
Total (1)
894,099 923,551 835,639 (3)%7%908,743 811,104 
NGL VOLUME - Barrels per day
United States79,632 77,405 78,937 3%1%78,525 67,756 
North Sea1,186 1,144 1,550 4%(23)%1,165 1,477 
Total (1)
80,818 78,549 80,487 3%—%79,690 69,233 
BOE per day
United States289,902 298,319 303,416 (3)%(4)%294,087 258,733 
Egypt (1, 2)
143,818 139,041 133,215 3%8%141,443 134,177 
North Sea31,358 31,618 36,778 (1)%(15)%31,487 38,373 
Total (1)
465,078 468,978 473,409 (1)%(2)%467,017 431,283 














Total excluding noncontrolling interests417,096 422,595 428,972 (1)%(3)%419,830 386,525 

(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below:

Oil (b/d)28,762 28,746 29,255 28,754 29,099 
Gas (Mcf/d)115,319 105,820 91,094 110,596 93,954 
BOE per day47,982 46,383 44,437 47,187 44,758 

(2) Egypt Gross Production:

Oil (b/d)123,852 128,025 139,490 125,927 138,731 
Gas (Mcf/d)479,235 456,955 431,750 468,157 444,499 
BOE per day203,725 204,184 211,448 203,953 212,814 
Page 2


APA CORPORATION
ADJUSTED PRODUCTION INFORMATION

Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) noncontrolling interest in Egypt and 2) Egypt tax barrels. Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.

For the Quarter Ended% ChangeFor the Six Months Ended
June 30,March 31,June 30,2Q25 to 1Q252Q25 to 2Q24June 30,June 30,
20252025202420252024
OIL VOLUME - Barrels per day
United States123,725 125,124 139,361 (1)%(11)%124,420 111,441 
Egypt43,593 42,521 43,099 3%1%43,060 42,801 
North Sea25,309 25,206 26,586 —%(5)%25,258 28,190 
Total192,627 192,851 209,046 —%(8)%192,738 182,432 














NATURAL GAS VOLUME - Mcf per day
United States519,276 574,736 510,708 (10)%2%546,853 477,223 
Egypt175,126 155,555 133,184 13%31%165,395 137,166 
North Sea29,174 31,606 51,854 (8)%(44)%30,383 52,229 
Total723,576 761,897 695,746 (5)%4%742,631 666,618 














NGL VOLUME - Barrels per day
United States79,632 77,405 78,937 3%1%78,525 67,756 
North Sea1,186 1,144 1,550 4%(23)%1,165 1,477 
Total80,818 78,549 80,487 3%—%79,690 69,233 














BOE per day
United States289,902 298,319 303,416 (3)%(4)%294,087 258,733 
Egypt72,781 68,447 65,296 6%11%70,626 65,662 
North Sea31,358 31,618 36,778 (1)%(15)%31,487 38,373 
Total394,041 398,384 405,490 (1)%(3)%396,200 362,768 
Page 3

APA CORPORATION
PRICE INFORMATION

For the Quarter EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20252025202420252024
AVERAGE OIL PRICE PER BARREL
United States$64.84$72.45$80.54$68.64$79.35
Egypt66.3975.0684.3070.7083.75
North Sea66.5675.3084.6271.6183.77
Total65.5873.7382.2869.7281.57
AVERAGE NATURAL GAS PRICE PER MCF
United States$1.03$2.00$0.31$1.54$0.83
Egypt3.483.192.923.342.93
North Sea11.6914.9610.6113.429.92
Total2.282.811.772.552.11
AVERAGE NGL PRICE PER BARREL
United States$19.87$28.12$21.22$23.91$22.96
North Sea41.6251.3943.4346.2846.66
Total20.4928.7521.6824.5423.58
Page 4

APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In millions)

SUMMARY EXPLORATION EXPENSE INFORMATION
For the Quarter EndedFor the Six Months Ended
June 30,June 30,
2025202420252024
Unproved leasehold impairments$— $— $— $10 
Dry hole expense32 41 43 164 
Geological and geophysical expense— 15 4 16 
Exploration overhead and other11 15 26 29 
$43 $71 $73 $219 









SUMMARY STOCK-SETTLED AND CASH-SETTLED EQUITY COMPENSATION INFORMATION
For the Quarter EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,
20252025202420252024
Stock-settled and cash-settled compensation expensed:
Lease operating expenses$3 $7 $6 $10 $10 
Exploration2 1 1 3 2 
General and administrative8 17 7 25 10 
Total stock-settled and cash-settled compensation expensed13 25 14 38 22 
Stock-settled and cash-settled compensation capitalized2 4 3 6 6 
Total stock-settled and cash-settled compensation costs$15 $29 $17 $44 $28 










Page 5

APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In millions)








SUMMARY CASH FLOW INFORMATION
For the Quarter EndedFor the Six Months Ended
June 30,June 30,
2025202420252024
Net cash provided by operating activities$1,181 $877 $2,277 $1,245 
Additions to upstream oil and gas property(660)(756)(1,437)(1,223)
Leasehold and property acquisitions(7)— (20)(63)
Proceeds from asset divestitures571 702 571 729 
Proceeds from sale of Kinetik shares— — — 428 
Other, net1 (10)5 (23)
Net cash used in investing activities$(95)$(64)$(881)$(152)
Proceeds from (payments on) commercial paper and revolving credit facilities, net(766)65 (333)63 
Proceeds from (payments on) term loan facility— 1,500 (900)1,500 
Payment on Callon Credit Agreement— (472)— (472)
Fixed-rate debt borrowings— — 846 — 
Payments on fixed-rate debt(49)(1,641)(954)(1,641)
Distributions to noncontrolling interest(91)(53)(217)(123)
Treasury stock activity, net(50)(43)(150)(144)
Dividends paid to APA common stockholders(90)(92)(181)(168)
Other, net— (19)(25)(35)
Net cash used in financing activities$(1,046)$(755)$(1,914)$(1,020)

SUMMARY BALANCE SHEET INFORMATION
June 30,December 31,
20252024
Cash and cash equivalents$107 $625 
Other current assets2,181 2,779 
Property and equipment, net12,641 12,646 
Decommissioning security for sold Gulf of America properties21 21 
Other assets3,128 3,319 
Total assets$18,078 $19,390 




Current debt$263 $53 
Current liabilities2,581 2,902 
Long-term debt4,288 5,991 
Decommissioning contingency for sold Gulf of America properties909 929 
Deferred credits and other noncurrent liabilities3,134 3,153 
APA shareholders’ equity5,905 5,280 
Noncontrolling interest998 1,082 
Total Liabilities and equity$18,078 $19,390 
Common shares outstanding at end of period359365
Page 6

APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions)

Reconciliation of Costs incurred to Upstream capital investment

Management believes the presentation of upstream capital investments is useful for investors to assess APA’s expenditures related to our upstream capital activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude property and leasehold acquisitions, asset retirement additions and revisions, capitalized interest, and certain exploration expenses. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of APA’s cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.

For the Quarter EndedFor the Six Months Ended
June 30,June 30,
2025202420252024
Costs incurred in oil and gas property:
Asset and leasehold acquisitions$8 $4,493 $17 $4,556 
Exploration and development735 933 1,529 1,587 
Total Costs incurred in oil and gas property$743 $5,426 $1,546 $6,143 
Reconciliation of Costs incurred to Upstream capital investment:
Total Costs incurred in oil and gas property$743 $5,426 $1,546 $6,143 
Asset and leasehold acquisitions(8)(4,493)(17)(4,556)
Asset retirement obligations incurred - oil and gas property(3)(4)(8)(9)
Capitalized interest(16)(7)(20)(14)
Exploration seismic and administration costs(11)(30)(30)(45)
Upstream capital investment including noncontrolling interest - Egypt$705 $892 $1,471 $1,519 
Less noncontrolling interest - Egypt(57)(65)(113)(134)
Total Upstream capital investment$648 $827 $1,358 $1,385 


Reconciliation of Net cash provided by operating activities to Cash flows from operations before changes in operating assets and liabilities and Free cash flow

Cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP financial measures. APA uses these measures internally and provides this information because management believes it is useful in evaluating the company’s ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt, as well as to compare our results from period to period. We believe these measures are also used by research analysts and investors to value and compare oil and gas exploration and production companies and are frequently included in published research reports when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities and free cash flow are additional measures of liquidity but are not measures of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities. Additionally, this presentation of free cash flow may not be comparable to similar measures presented by other companies in our industry.

For the Quarter EndedFor the Six Months Ended
June 30,June 30,
2025202420252024
Net cash provided by operating activities$1,181 $877 $2,277 $1,245 
Changes in operating assets and liabilities(200)190 (245)649 
Cash flows from operations before changes in operating assets and liabilities$981 $1,067 $2,032 $1,894 
Adjustments to free cash flow:
Upstream capital investment including noncontrolling interest - Egypt(705)(892)(1,471)(1,519)
Abandonment and decommissioning spend(40)(10)(68)(49)
Leasehold acquisition and other(11)(9)(16)(1)
Distributions to Sinopec noncontrolling interest(91)(53)(217)(123)
Free cash flow$134 $103 $260 $202 
Page 7

APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions)

Reconciliation of Net cash provided by operating activities to Adjusted EBITDAX

Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’s on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

For the Quarter EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,
20252025202420252024
Net cash provided by operating activities$1,181 $1,096 $877 $2,277 $1,245 
Adjustments:
Exploration expense other than dry hole expense and unproved leasehold impairments11 19 30 30 45 
Current income tax provision232 306 285 538 585 
Other adjustments to reconcile net income to net cash provided by operating activities(5)(13)(21)(18)(31)
Changes in operating assets and liabilities(200)(45)190 (245)649 
Financing costs, net (excludes gain on extinguishment of debt)69 85 100 154 176 
Transaction, reorganization & separation costs11 37 115 48 142 
Adjusted EBITDAX (Non-GAAP)$1,299 $1,485 $1,576 $2,784 $2,811 


Reconciliation of debt to net debt

Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

June 30,March 31,December 31,September 30,
2025202520242024
Current debt$263 $131 $53 $2 
Long-term debt4,288 5,237 5,991 6,370 
Total debt4,551 5,368 6,044 6,372 
Cash and cash equivalents107 67 625 64 
Net Debt$4,444 $5,301 $5,419 $6,308 
Page 8

APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)

Reconciliation of Income attributable to common stock to Adjusted earnings

Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.

Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.

For the Quarter EndedFor the Quarter Ended
June 30, 2025June 30, 2024
Before
Tax
AfterDilutedBefore
Tax
AfterDiluted
Tax
Impact
Tax
EPS
Tax
Impact
Tax
EPS
Net income including noncontrolling interests (GAAP)$1,028 $(363)$665 $1.84 $928 $(308)$620 $1.67 
Income attributable to noncontrolling interests113 (51)62 0.17 145 (66)79 0.21 
Net income attributable to common stock915 (312)603 1.67 783 (242)541 1.46 
Adjustments: *
Valuation allowance and EPL revaluation— 30 30 0.09 — — — — 
Gain on extinguishment of debt(3)1 (2)(0.01)— — — — 
Unrealized derivative instrument gains(136)30 (106)(0.29)(3)1 (2)(0.01)
Loss on previously sold Gulf of America properties— — — — 17 (4)13 0.03 
Transaction, reorganization & separation costs11 (4)7 0.02 115 (17)98 0.27 
Gain on divestitures, net(282)63 (219)(0.61)(276)60 (216)(0.58)
Adjusted earnings (Non-GAAP)$505 $(192)$313$0.87 $636 $(202)$434 $1.17 
For the Six Months EndedFor the Six Months Ended
June 30, 2025June 30, 2024
Before
Tax
AfterDilutedBefore
Tax
AfterDiluted
Tax
Impact
Tax
EPS
Tax
Impact
Tax
EPS
Net income including noncontrolling interests (GAAP)$1,791 $(708)$1,083 $2.99 $1,375 $(543)$832 $2.47 
Income attributable to noncontrolling interests242 (109)133 0.37 290 (131)159 0.47 
Net income attributable to common stock1,549 (599)950 2.62 1,085 (412)673 2.00 
Adjustments: *
Asset and unproved leasehold impairments— — — — 10 (2)8 0.02 
Valuation allowance and EPL revaluation— 128 128 0.36 — 16 16 0.05 
Gain on extinguishment of debt(145)32 (113)(0.31)— — — — 
Unrealized derivative instrument (gains) losses(108)24 (84)(0.23)5 (1)4 0.01 
Loss on previously sold Gulf of America properties— — — — 83 (18)65 0.19 
Kinetik equity investment mark-to-market loss— — — — 9 — 9 0.03 
Transaction, reorganization & separation costs48 (13)35 0.10 142 (25)117 0.35 
Gain on divestitures, net(280)62 (218)(0.61)(283)62 (221)(0.66)
Adjusted Earnings (Non-GAAP)$1,064 $(366)$698 $1.93 $1,051 $(380)$671 $1.99 
*The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.
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