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What changed in APA Corporation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of APA Corporation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+301 added−305 removedSource: 10-K (2026-02-26) vs 10-K (2025-02-28)

Top changes in APA Corporation's 2025 10-K

301 paragraphs added · 305 removed · 215 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

71 edited+34 added−11 removed67 unchanged
Biggest changeThese factors include demand, which fluctuates with changes in market and economic conditions, and other factors, including: • worldwide and domestic supplies and/or inventories of crude oil, natural gas, and NGLs and the availability of related pipeline, transportation, import/export, and refining capacity and infrastructure; • actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+); • political conditions and events in oil and gas producing regions, including instabilities, changes in governments, or armed conflicts, such as the Russian war in Ukraine and the armed conflict in Israel and Gaza; • the price, competitiveness, decision to use, and availability of alternative fuels and energy sources, including coal, biofuels, and renewables; • increased competitiveness of, and demand for, alternative energy sources; • technological advances affecting energy supply and energy consumption, including those that alter fuel choices; • the availability of pipeline capacity and infrastructure; • the availability of crude oil transportation and refining capacity; • weather conditions; • the impact of political pressure and the influence of environmental groups, investors, and other stakeholders on decisions and policies related to the oil and gas industry, including with respect to environmental, social, and governance matters; • domestic and foreign governmental regulations and taxes, including changes or initiatives to address the impacts of global climate change, hydraulic fracturing, methane emissions, flaring, or water disposal; and • the overall economic environment, including rates of growth, trade tensions, and increasing inflationary pressure.
Biggest changeThe market prices for crude oil, natural gas, and NGLs depend on factors beyond the Company’s control, including: • demand, which fluctuates with changes in market and economic conditions; • worldwide and domestic supplies and/or inventories of crude oil, natural gas, and NGLs and the availability of related pipeline, transportation, import/export, and refining capacity and infrastructure; • actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+); • political conditions and events in oil and gas producing regions, including instabilities, changes in governments, or armed conflicts; • the price, competitiveness, decision to use, and availability of alternative fuels and energy sources, including coal, biofuels, and renewables; • increased competitiveness of, and demand for, alternative energy sources; • technological advances affecting energy supply and energy consumption, including those that alter fuel choices; • the availability of pipeline capacity and infrastructure; • the availability of crude oil transportation and refining capacity; • weather conditions; • the impact of political pressure and the influence of environmental groups, investors, and other stakeholders on decisions and policies related to the oil and gas industry, including with respect to environmental, social, and governance matters; • the timing, scope, implementation, and potential judicial review of energy transition and climate-related policies and regulations (such as methane fees, emissions reporting requirements, carbon pricing mechanisms, and other climate-related measures); • domestic and foreign governmental regulations and taxes, including changes or initiatives to address the impacts of global climate change, hydraulic fracturing, methane emissions, flaring, or water disposal; and • the overall economic environment, including rates of growth, trade tensions, and increasing inflationary pressure. 18 Low prices have previously adversely affected and could from time to time in the future adversely affect the Company’s revenues, operating income, cash flow, and proved reserves, and a prolonged period of low prices could have a material adverse impact on the Company’s results of operations and cash flows and limit its ability to fund capital expenditures and return capital to its shareholders.
The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including well blowouts, explosions, fires, cratering, pipeline or other facility ruptures and spills, adverse weather conditions, including those impacting the Company’s offshore operating areas, surface spillage and ground water contamination, and failure or loss of equipment.
The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including well blowouts, explosions, fires, cratering, pipeline or other facility ruptures and 19 spills, adverse weather conditions, including those impacting the Company’s offshore operating areas, surface spillage and ground water contamination, and failure or loss of equipment.
The agreements relating to the Company’s divestment of domestic and international assets generally contain provisions pursuant to which liabilities related to past and future operations (one of the most significant of which is the decommissioning of wells and facilities) are allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, surety bonds, letters of credit, and similar arrangements.
The agreements relating to the Company’s divestment of domestic and international assets generally contain provisions pursuant to which liabilities related to past and future operations (one of the most significant of which is the decommissioning 22 of wells and facilities) are allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, surety bonds, letters of credit, and similar arrangements.
In addition, if such an event were to occur, then the proceeds of any such insurance may not be paid in a timely manner or may not be sufficient to cover all of the Company’s losses. A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations.
In addition, if such an event were to occur, then the proceeds of any such insurance may not be paid in a timely manner or may not be sufficient to cover all of the Company’s losses. 20 A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations.
As described in Note 10—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company has substantial net operating loss carryforwards (NOLs) and other tax attributes available to potentially offset future taxable income.
As described in Note 9—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company has substantial net operating loss carryforwards (NOLs) and other tax attributes available to potentially offset future taxable income.
Further, compliance with reporting and environmental regulations governing the withdrawal, storage, use, and discharge of water and restrictions related to disposal wells may increase the Company’s operating costs or capital expenses or cause the Company to limit production, which could materially and adversely affect its business, results of operations, and financial conditions.
Further, compliance with reporting and environmental regulations governing the withdrawal, storage, use, and discharge of water and restrictions related to disposal 27 wells may increase the Company’s operating costs or capital expenses or cause the Company to limit production, which could materially and adversely affect its business, results of operations, and financial conditions.
As described in Note 10—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company assesses the realizability of its deferred tax assets based on its ability to generate sufficient future taxable income.
As described in Note 9—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company assesses the realizability of its deferred tax assets based on its ability to generate sufficient future taxable income.
There can be no assurance that acquisitions will not adversely impact the Company’s operating results, particularly during their integration into the Company’s ongoing operations. Crude oil, natural gas, and NGL reserves are estimates, and actual recoveries may vary significantly.
There can be no assurance that acquisitions will not adversely impact the Company’s operating results, particularly during their integration into the Company’s ongoing operations. 21 Crude oil, natural gas, and NGL reserves are estimates, and actual recoveries may vary significantly.
The Company may be required to incur significant costs in the future to safeguard its assets against terrorist activities. A further deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business.
The Company may be required to incur significant costs in the future to safeguard its assets against terrorist activities. A deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business.
The Company’s efforts to limit its 25 exposure to such liability and cost may prove inadequate and result in significant adverse effects to the Company’s results of operations and cash flows. The Company’s U.S. operations are subject to governmental risks.
The Company’s efforts to limit its exposure to such liability and cost may prove inadequate and result in significant adverse effects to the Company’s results of operations and cash flows. The Company’s U.S. operations are subject to governmental risks.
In addition, realization or recognition of 22 proved undeveloped reserves will depend on the Company’s development schedule and plans. A change in future development plans for proved undeveloped reserves could cause the discontinuation of the classification of these reserves as proved.
In addition, realization or recognition of proved undeveloped reserves will depend on the Company’s development schedule and plans. A change in future development plans for proved undeveloped reserves could cause the discontinuation of the classification of these reserves as proved.
Any downward revision in the amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stock.
Any downward revision in the 23 amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stock.
Any harm to the Company’s reputation resulting from publicly disclosing such these metrics, expanding disclosures related to such metrics, or failing to achieve such metrics or abiding by such disclosures could adversely affect the Company’s business, financial performance, and growth.
Any harm to the Company’s reputation resulting from publicly disclosing such metrics, expanding disclosures related to such metrics, or failing to achieve such metrics or abiding by such disclosures could adversely affect the Company’s business, financial performance, and growth.
While the Company remains focused on reusing or recycling water over disposal of water, the Company’s costs for obtaining and disposing of water 27 could increase significantly if reusing and recycling water becomes impractical.
While the Company remains focused on reusing or recycling water over disposal of water, the Company’s costs for obtaining and disposing of water could increase significantly if reusing and recycling water becomes impractical.
Given the dynamic nature of the Company’s business, the Company generally performs annual scenario analyses with five-year time horizons. When analyzing longer-term scenarios, the Company relies on external analysis for demand scenarios, carbon pricing, and comparison-pricing scenarios, which are then compared to the Company’s internally prepared base-case pricing analysis averaged out to the year 2040.
Given the dynamic nature of the Company’s business, the Company generally performs biennial scenario analyses with five-year time horizons. When analyzing longer-term scenarios, the Company relies on external analysis for demand scenarios, carbon pricing, and comparison-pricing scenarios, which are then compared to the Company’s internally prepared base-case pricing analysis averaged out to the year 2040.
If investors or financial institutions shift funding away from companies in the oil and gas industry, the Company’s access to and costs of capital or the market for the Company’s securities may be negatively impacted. RISKS RELATED TO FINANCIAL RESULTS The Company faces strong industry competition that may have a significant negative impact on the Company’s results of operations.
If investors or financial institutions shift funding away from companies in the oil and gas industry, the Company’s access to and costs of capital or the market for the Company’s securities may be negatively impacted. The Company faces strong industry competition that may have a significant negative impact on the Company’s results of operations.
Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage. A sizeable portion of the Company’s acreage is currently undeveloped. Unless production in paying quantities is established on units containing certain of these leases during their terms, the leases will expire.
Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage. A sizable portion of the Company’s acreage is currently undeveloped. Unless production in paying quantities is established on units containing certain of these leases during their terms, the leases will expire.
Given the numerous estimates that are required to run these scenarios, the Company’s estimates could differ materially from actual results. The Company publicly discloses these metrics and its related assumptions and analysis in its annual sustainability report. By electing to disclose these metrics, the Company may face increased scrutiny related to its ESG initiatives.
Given the numerous estimates that are required to run these scenarios, the Company’s estimates could differ materially from actual results. The Company publicly discloses these metrics and its related assumptions and analysis in its sustainability reports. By electing to disclose these metrics, the Company may face increased scrutiny related to its ESG initiatives.
Demand for oil and natural gas are, to a significant degree, dependent on weather and climate, which impact the price the Company receives for the commodities it produces.
Demand for oil and natural gas is, to a significant degree, dependent on weather and climate, which impact the price the Company receives for the commodities it produces.
This focus, together with shifting preferences and attitudes with respect to the generation and consumption of energy, the use of hydrocarbons, and the use of products manufactured with, or powered by, hydrocarbons, may result in increased availability of, and demand for, energy sources other than oil and natural gas, including wind, solar, and hydroelectric power, and the 26 development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services.
This focus, together with shifting preferences and attitudes with respect to the generation and consumption of energy, the use of hydrocarbons, and the use of products manufactured with or powered by hydrocarbons, have resulted in increased availability of, and demand for, energy sources other than oil and natural gas, including wind, solar, and hydroelectric power, and the development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services.
A portion of the Company’s crude oil, natural gas, and NGL production in any region may be, and previously have been, interrupted, limited, or shut in from time to time for numerous reasons, including as a result of weather conditions, accidents, loss of pipeline or gathering system access, field labor issues or strikes, cyberattacks or terrorist events, or capital constraints that limit the ability of third parties to construct gathering systems, processing facilities, or interstate pipelines to transport the Company’s production.
A portion of the Company’s crude oil, natural gas, and NGL production in any region may be, and previously have been, interrupted, limited, or shut in from time to time for numerous reasons, including as a result of weather conditions, accidents, loss of pipeline or gathering system access, field labor issues or strikes, cyberattacks or terrorist events, or capital constraints, financial distress, or insolvency of third-party providers that limit the ability of such third parties to construct gathering systems, processing facilities, or interstate pipelines to transport the Company’s production.
RISKS RELATED TO RESERVES AND LEASEHOLD ACREAGE Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production. The production rate from oil and natural gas properties generally declines as reserves are depleted, while related per-unit production costs generally increase as a result of decreasing reservoir pressures and other factors.
RISKS RELATED TO RESERVES, ESTIMATES, AND LEASEHOLDS Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production. The production rate from oil and natural gas properties generally declines as reserves are depleted, while related per-unit production costs generally increase as a result of decreasing reservoir pressures and other factors.
RISKS RELATED TO COUNTERPARTIES The credit risk of financial institutions could adversely affect the Company and result in a significant loss.
RISKS RELATED TO COUNTERPARTIES AND JOINT VENTURES The credit risk of financial institutions could adversely affect the Company and result in a significant loss.
If adopted, such regulations could impose more stringent permitting, reporting, and well construction requirements or otherwise seek to ban fracturing activities. These activities and the associated water disposal activities are under scrutiny due to their potential environmental and physical impacts, including possible water contamination and possible links to induced seismicity.
Such regulations may impose more stringent permitting, reporting, and well construction requirements or otherwise seek to ban fracturing activities. These activities and the associated water disposal activities are under scrutiny due to their potential environmental and physical impacts, including possible water contamination and possible links to induced seismicity.
On a barrel equivalent basis, approximately 38 percent of the Company’s 2024 production was outside the U.S., and approximately 28 percent of the Company’s estimated proved oil and gas reserves as of December 31, 2024, were located outside the U.S.
On a barrel equivalent basis, approximately 38 percent of the Company’s 2025 production was outside the U.S., and approximately 26 percent of the Company’s estimated proved oil and gas reserves as of December 31, 2025, were located outside the U.S.
RISKS RELATED TO PRICING, DEMAND, AND PRODUCTION FOR CRUDE OIL, NATURAL GAS, AND NGLs Crude oil, natural gas, and NGL prices and their volatility could adversely affect the Company’s operating results and the price of APA’s common stock.
RISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION Crude oil, natural gas, and NGL prices and their volatility could adversely affect the Company’s operating results and the price of APA’s common stock.
If conditions continue to deteriorate in Egypt, then it could materially and adversely affect the Company’s business, financial condition, and results of operations. The Company’s operations are sensitive to currency rate fluctuations. The Company’s operations are sensitive to fluctuations in foreign currency exchange rates, particularly between the U.S. dollar and the British pound.
If conditions were to deteriorate again in Egypt, then it could materially and adversely affect the Company’s business, financial condition, and results of operations. The Company’s operations are sensitive to currency rate fluctuations. The Company’s operations are sensitive to fluctuations in foreign currency exchange rates, particularly among the U.S. dollar, the British pound, and the Egyptian pound.
For example, the U.K. enacted the Energy Profits Levy (EPL), which assesses an additional levy of 35 percent, effective for the period of January 1, 2023, through March 31, 2028, on the profits of oil and gas companies operating in the U.K. and the U.K. Continental Shelf.
For example, the U.K. enacted the Energy Profits Levy (EPL), which (prior to recent law changes) assessed an additional levy of 35 percent, effective for the period of January 1, 2023, through March 31, 2028, on the profits of oil and gas companies operating in the U.K. and the U.K. Continental Shelf.
As a result, a significant portion of the Company’s production and resources are subject to the increased political and economic risks and other factors associated with international operations, including, but not limited to strikes and civil unrest; war, acts of terrorism, expropriation and resource nationalization, forced renegotiation or modification of existing contracts, including through prospective or retroactive changes in the laws and regulations applicable to such contracts; import and export regulations; taxation policies and investment restrictions; price controls; exchange controls, currency fluctuations, devaluations, or other activities that limit or disrupt markets and restrict payments or the movement of funds; constrained oil or natural gas markets dependent on demand in a single or limited geographical area; laws and policies of the U.S. affecting foreign trade, including trade sanctions and tariffs; the possibility of being subject to exclusive jurisdiction of foreign courts in connection with legal disputes relating to licenses to operate and concession rights in countries where the Company currently operates; the possible inability to subject foreign persons, especially foreign oil ministries and national oil companies, to the jurisdiction of courts in the U.S.; and difficulties in enforcing the Company’s rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations.
As a result, a significant portion of the Company’s production and resources are subject to the increased political and economic risks and other factors associated with international operations, including, but not limited to: • strikes and civil unrest; • war, acts of terrorism, expropriation and resource nationalization; • forced renegotiation or modification of existing contracts, including through prospective or retroactive changes in laws and regulations; • litigation, including as initiated by or otherwise involving non-governmental organizations; • dependence on host-country approvals; • local content requirements; • vessel and equipment availability; • import and export regulations; • customs and port logistics; • taxation policies and investment restrictions; • price controls; • exchange controls, currency fluctuations, devaluations, or other activities that limit or disrupt markets and restrict payments or the movement of funds; • constrained oil or natural gas markets dependent on demand in a single or limited geographical area; • laws and policies of the U.S. affecting foreign trade, including trade sanctions and tariffs; • the possibility of being subject to exclusive jurisdiction of foreign courts or tribunals in connection with legal disputes relating to licenses to operate and concession rights in countries where the Company currently operates; • the possible inability to subject foreign persons, especially foreign oil ministries and national oil companies, to the jurisdiction of courts in the U.S.; and • difficulties in enforcing the Company’s rights against a governmental agency or state-owned or government-controlled entities because of the doctrine of sovereign immunity and foreign sovereignty over international operations.
If a significant amount of the Company’s production is interrupted, containment efforts prove to be ineffective, or litigation arises as the result of a catastrophic occurrence, the Company’s cash flows and, in turn, its results of operations could be materially and adversely affected. Weather and climate may have a significant adverse impact on the Company’s revenues and production.
If a significant amount of the Company’s production is interrupted, containment efforts prove to be ineffective, or litigation arises as the result of a catastrophic occurrence, the Company’s cash flows and, in turn, its results of operations could be materially and adversely affected.
If the subsidiaries are limited in their ability to distribute cash to the Company, such as through legal or contractual limitations, or if the subsidiaries’ earnings or other available assets are not sufficient to pay distributions or make loans to the Company in the amounts or at the times necessary to meet the Company’s financial obligations, then the Company’s financial condition, cash flows, and reputation may be materially adversely affected.
If the subsidiaries are limited in their ability to distribute cash to the Company, such as through legal or contractual limitations, or if the subsidiaries’ earnings or other available assets are not sufficient to pay distributions or make loans to the Company in the amounts or at the times necessary to meet the Company’s financial obligations, then the Company’s financial condition, cash flows, and reputation may be materially adversely affected. 24 RISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS The Company may incur significant costs related to environmental matters.
Further deterioration in the political, economic, and social conditions or other relevant policies of the Egyptian government, such as changes in laws or regulations, export restrictions, expropriation of the Company’s assets or resource nationalization, and/or forced renegotiation or modification of the Company’s existing contracts with Egyptian General Petroleum Corporation (EGPC), or threats or acts of terrorism could materially and adversely affect the Company’s business and operations.
Deterioration in the political, economic, and social conditions or other relevant policies of the Egyptian government, such as changes in laws or regulations, export restrictions, new or increased taxes, fees, or levies, limitations affecting the repatriation or transfer of funds, expropriation of the Company’s assets or resource nationalization, and/or forced renegotiation or modification of the Company’s existing contracts with Egyptian General Petroleum Corporation (EGPC), or threats or acts of terrorism could materially and adversely affect the Company’s business and operations.
The potential impacts of a cyber incident could be made worse by a delay or failure to detect the occurrence, continuance, or extent of such an incident. 21 The Company expends significant resources to protect its digital systems and data, whether such data is housed internally or externally by third parties, against cyberattacks and may be required to expend further resources as cyber threat actors become more sophisticated and as regulations related to cyberattacks become more complex.
The potential impacts of a cyber incident could be made worse by a delay or failure to detect the occurrence, continuance, or extent of such an incident. The Company may be required to expend further resources to protect its digital systems and data as cyber threat actors become more sophisticated and as regulations related to cyberattacks become more complex.
The insurance coverage that the Company maintains against certain losses or liabilities arising from its operations may be inadequate to cover any such resulting liability; moreover, insurance is not available to the Company against all operational risks.
The Company’s international operations are also subject to political and economic risks. The insurance coverage that the Company maintains against certain losses or liabilities arising from its operations may be inadequate to cover any such resulting liability; moreover, insurance is not available to the Company against all operational risks.
Drilling for oil and gas involves numerous risks, including that the Company may not encounter commercially productive oil or gas reservoirs or may not recover all or any portion of its investment in the wells it drills.
The Company has previously not realized, and may in the future not realize, an adequate return on wells that it drills. Drilling for oil and gas involves numerous risks, including that the Company may not encounter commercially productive oil or gas reservoirs or may not recover all or any portion of its investment in the wells it drills.
RISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL RISKS The Company may incur significant costs related to environmental matters. As an owner or lessee and operator of oil and gas properties, the Company is subject to various federal, state, local, and foreign laws and regulations relating to the discharge of materials into and protection of the environment.
As an owner or lessee and operator of oil and gas properties, the Company is subject to various federal, state, local, and foreign laws and regulations relating to the discharge of materials into and protection of the environment.
These developments could adversely impact the demand for products powered by or manufactured with hydrocarbons and the demand for, and in turn the prices the Company receives for, its crude oil, natural gas, and NGL products, which could materially and adversely affect the Company’s business and financial performance.
Further developments could adversely impact the demand for products powered by or manufactured with hydrocarbons and the demand for, and in turn the prices the Company receives for, its crude oil, natural gas, and NGL products, which could materially and adversely affect the Company’s business and financial performance. 26 Weather and climate may have a significant adverse impact on the Company’s revenues and production.
Further changes to the EPL regime were announced in 2024, with enactment expected in 2025. Such changes, effective for the period of November 1, 2024, through March 31, 2030, would increase the levy to 38 percent, remove certain allowances, and extend the EPL period.
Further changes to the EPL regime were enacted in 2025. Such changes, effective for the period of November 1, 2024, through March 31, 2030, increased the levy to 38 percent, removed certain allowances, and extended the EPL period.
For additional information regarding Apache’s prior Gulf of America properties and the bankruptcy of the purchaser of those properties, see the information set forth under “Potential Decommissioning Obligations on Sold Properties” in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 23 The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations.
For additional information regarding Apache’s prior Gulf of America properties and the bankruptcy of the purchaser of those properties, see the information set forth under “Potential Decommissioning Obligations on Sold Properties” in Note 10—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
RISKS RELATED TO CAPITAL MARKETS A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital. The Company receives debt ratings from the major credit rating agencies in the U.S.
In either case, the value of the investment and the Company’s business and financial condition may be adversely affected. RISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital. The Company receives debt ratings from the major credit rating agencies in the U.S.
Sustained low prices of crude oil, natural gas, and NGLs could also further adversely impact the Company’s business, including by weakening the Company’s financial condition and reducing its liquidity, limiting the Company’s ability to fund planned capital expenditures and operations, causing the Company to delay or postpone some of its capital projects or reallocate capital to different projects or regions, limiting the Company’s access to sources of capital, such as equity and long-term debt, or reducing the carrying value of the Company’s oil and gas properties, resulting in additional non-cash impairments. 19 The Company’s ability to sell crude oil, natural gas, or NGLs, receive market prices for these commodities, and/or meet volume commitments under transportation services agreements may be adversely affected by pipeline and gathering system capacity constraints, the inability to procure and resell volumes economically, and various transportation interruptions.
Sustained low prices of crude oil, natural gas, and NGLs could also further adversely impact the Company’s business, including by weakening the Company’s financial condition and reducing its liquidity, limiting the Company’s ability to fund planned capital expenditures and operations, causing the Company to delay or postpone some of its capital projects or reallocate capital to different projects or regions, limiting the Company’s access to sources of capital, such as equity and long-term debt, or reducing the carrying value of the Company’s oil and gas properties, resulting in additional non-cash impairments.
Further, if the Company is unable to procure and resell third-party volumes at or above a net price that covers the cost of transportation, the Company’s cash flows could be adversely affected. The Company has previously not realized, and may in the future not realize, an adequate return on wells that it drills.
Further, if the Company is unable to procure and resell third-party volumes at or above a net price that covers the cost of transportation, the Company’s cash flows could be adversely affected.
Previous legislative proposals, if enacted into law, could make significant changes to tax laws, including the elimination of certain key U.S. federal income tax incentives currently available to oil and gas E&P companies.
Accordingly, any resulting Corporate AMT liability could adversely affect the Company’s future financial results, including earnings and cash flows. 25 Previous legislative proposals, if enacted into law, could make significant changes to tax laws, including the elimination of certain key U.S. federal income tax incentives currently available to oil and gas E&P companies.
Additionally, deteriorating economic conditions in Egypt have led to a shortage of foreign currency, including U.S. dollars, resulting in a decline in the timeliness of payments from EGPC.
Additionally, previous deteriorations in the economic conditions in Egypt have led to a shortage of foreign currency, including U.S. dollars, resulting in a decline in the timeliness of payments from EGPC, and such declines may reoccur if conditions were to deteriorate again.
The Company routinely uses fracturing techniques in the U.S. and other regions to expand the available space for oil and natural gas to migrate toward the wellbore, typically at substantial depths in formations with low permeability. Governmental entities have previously taken actions to regulate, and several proposals are before the U.S. Congress that, if implemented, would further regulate, hydraulic fracturing.
The Company routinely uses fracturing techniques in the U.S. and other regions to expand the available space for oil and natural gas to migrate toward the wellbore, typically at substantial depths in formations with low permeability. Governmental entities have previously taken actions to regulate hydraulic fracturing, and future regulatory approaches may vary significantly across jurisdictions and over time.
Unfavorable ESG ratings may lead to negative investor and public sentiment toward the Company, which may cause the market for the Company’s securities to be negatively impacted. 24 In addition, a number of advocacy groups have campaigned for governmental and private action to influence change in the business strategies of oil and gas companies, including through the investment and voting practices of investment advisers, public pension funds, universities, and other members of the investing community.
In addition, a number of advocacy groups have campaigned for governmental and private action to influence change in the business strategies of oil and gas companies, including through the investment and voting practices of investment advisers, public pension funds, universities, and other members of the investing community.
Exploration costs and dry hole expenses incurred by the Company during the reporting period are further discussed in this Annual Report on Form 10-K and reflected in the consolidated financial statements included herein. The Company’s commodity price risk management and trading activities may prevent it from benefiting fully from price increases and may expose it to other risks.
Exploration costs and dry hole expenses incurred by the Company during the reporting period are further discussed in this Annual Report on Form 10-K and reflected in the consolidated financial statements included herein.
Exploration for and production of crude oil, natural gas, and NGLs involves hazards, which can result in damage to or destruction of wells or production facilities, injury to persons, loss of life, or damage to property or the environment. The Company’s international operations are also subject to political and economic risks.
The Company’s insurance policies do not cover all of the risks the Company faces, which could result in significant financial exposure. Exploration for and production of crude oil, natural gas, and NGLs involves hazards, which can result in damage to or destruction of wells or production facilities, injury to persons, loss of life, or damage to property or the environment.
Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact the Company’s business. Certain countries where the Company operates, including the U.K., either tax or assess some form of greenhouse gas (GHG) related fees on the Company’s operations.
Certain countries where the Company operates, including the U.K., either tax or assess some form of greenhouse gas (GHG) related fees on the Company’s operations. Exposure has not been material to date, although a change in existing regulations could adversely affect the Company’s cash flows and results of operations.
For example, the NYMEX daily settlement price for the prompt month oil contract in 2024 ranged from a high of $87.69 per barrel to a low of $66.73 per barrel, and the NYMEX daily settlement price for the prompt month natural gas contract in 2024 ranged from a high of $13.20 per MMBtu to a low of $1.21 per MMBtu.
For example, the NYMEX daily settlement price for the prompt month oil contract in 2025 ranged from a high of $80.73 per barrel to a low of $55.44 per barrel, and the NYMEX daily settlement price for the prompt month natural gas contract in 2025 ranged from a high of $9.86 per MMBtu to a low of $2.65 per MMBtu.
The Company conducts many of its exploration and production (E&P) operations through joint operating agreements or joint ventures with other parties. The Company may not control decisions made under such agreements or ventures, either because it does not have a controlling interest in the venture or is not an operator under the agreement.
The Company may not control decisions made under such agreements or ventures, either because it does not have a controlling interest in the venture or is not an operator under the agreement.
Additionally, there has been discussion in other countries where the Company operates, including the U.S., regarding changes in legislation or heightened regulation of GHGs, including to monitor and limit existing emissions of GHGs and to restrict or eliminate future emissions.
Additionally, there has been discussion in other countries where the Company operates, including previous discussion in the U.S. when the regulatory landscape at the federal level was more focused on these issues, regarding changes in legislation or heightened regulation of GHGs, including to monitor and limit existing emissions of GHGs, to restrict or eliminate future emissions, or to assess a charge on methane emissions in the oil and gas industry.
This instability could result in new governments or the adoption of new policies that might result in a substantially more hostile attitude toward foreign investments such as the Company’s. In an extreme case, such a change could result in termination of contract rights and expropriation of the Company’s assets. This could adversely affect the Company’s interests and its future profitability.
In an extreme case, such a change could result in termination of contract rights and expropriation of the Company’s assets. This could adversely affect the Company’s interests and its future profitability.
Any such changes could adversely affect the Company’s business, financial condition, and results of operations. RISKS RELATED TO CLIMATE CHANGE The impacts of energy transition could adversely affect the Company’s business, operating results, and financial condition. In recent years, increasing attention has been given to corporate activities related to climate change and energy transition.
RISKS RELATED TO CLIMATE CHANGE, ENERGY TRANSITION, AND ESG MATTERS The impacts of climate change, energy transition policies, and ESG-related initiatives could adversely affect the Company’s business, operating results, and financial condition. Attention continues to be given to corporate activities related to climate change and energy transition.
The Company’s planning for normal climatic variation, insurance programs, and emergency recovery plans may inadequately mitigate the effects of such weather conditions, and not all such effects can be predicted, eliminated, or insured against. The Company’s insurance policies do not cover all of the risks the Company faces, which could result in significant financial exposure.
The Company’s planning for normal climatic variation, insurance programs, and emergency recovery plans may inadequately mitigate the effects of such weather conditions, and not all such effects can be predicted, eliminated, or insured against. Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact the Company’s business.
The financial markets are subject to fluctuation and are vulnerable to unpredictable swings. The Company has a significant development project inventory and an extensive exploration portfolio, which will require substantial future investment. The Company and/or its partners may need to seek financing to fund these or other future activities.
Market conditions may restrict the Company’s ability to obtain funds for future development and working capital needs, which may limit its financial flexibility. The financial markets are subject to fluctuation and are vulnerable to unpredictable swings. The Company has a significant development project inventory and an extensive exploration portfolio, which will require substantial future investment.
The Company is involved in several large development projects, and the completion of these projects may be delayed beyond the Company’s anticipated completion dates. These projects may be delayed by project approvals from joint venture partners, timely issuances of permits and licenses by governmental agencies, weather conditions, manufacturing and delivery schedules of critical vessels and equipment, and other unforeseen events.
These projects may be delayed by approvals from joint venture partners, timely issuances of permits and licenses by governmental agencies, weather conditions, cost inflation, availability, manufacturing, and delivery schedules of critical vessels and equipment, customs and logistics, cash-call timing or funding shortfalls, and other unforeseen events.
There is no assurance of the terms upon which potential lenders under future agreements will make loans or other extensions of credit available to the Company or its subsidiaries or the composition of such lenders. The Company’s ability to declare and pay dividends, and to repurchase common stock, is subject to limitations.
This could significantly delay development of the Company’s property interests. The Company’s syndicated revolving credit facilities currently mature in January 2030. There is no assurance of the terms upon which potential lenders under future agreements will make loans or other extensions of credit available to the Company or its subsidiaries or the composition of such lenders.
Moreover, parties to such agreements or ventures may be unable to meet their economic or other obligations, and the Company may be required to fulfill those obligations alone. In either case, the value of the investment and the Company’s business and financial condition may be adversely affected.
Therefore, decisions may be made that the Company does not believe are in its best interest. Moreover, parties to such agreements or ventures may be unable to meet their economic or other obligations, and the Company may be required to fulfill those obligations alone.
Past ratings downgrades have required, and any future downgrades may require, the Company to post letters of credit or other forms of collateral for certain obligations. Market conditions may restrict the Company’s ability to obtain funds for future development and working capital needs, which may limit its financial flexibility.
A ratings downgrade could adversely impact the Company’s ability to access debt markets in the future and increase the cost of future debt. Past ratings downgrades have required, and any future downgrades may require, the Company to post letters of credit or other forms of collateral for certain obligations.
Global pandemics and the actions taken by third parties, including, but not limited to, governmental authorities, businesses, and consumers, in response to such pandemics, including the COVID-19 pandemic, have previously adversely impacted and may from time to time in the future adversely impact the global economy, resulting in significant volatility in the global financial markets, and the demand for, and the prices of, oil, natural gas, and NGLs, which may materially adversely affect the Company’s business, financial condition, cash flows, and results of operations.
Public health events, including related workforce availability constraints, travel restrictions, supply chain disruptions, or government-mandated operational limitations, have previously adversely impacted and may from time to time in the future adversely impact the global economy, cause significant volatility in financial markets, and reduce the demand for, and the prices of, oil, natural gas, and NGLs, which may materially adversely affect the Company’s business, financial condition, cash flows, and results of operations.
Global pandemics have previously, may continue to, and may in the future adversely impact the Company’s business, financial condition, and results of operations; the global economy; the demand for and prices of oil, natural gas, and NGLs; and the performance of the Company’s workforce.
Public health events, workforce disruptions, or similar global or regional events have previously and may in the future adversely impact the Company’s business, financial condition, and results of operations.
Foreign countries have occasionally asserted rights to oil and gas properties through border disputes. If a country claims superior rights to oil and gas leases or concessions granted to the Company by another country, the Company’s interests could decrease in value or be lost.
If a country claims superior rights to oil and gas leases or concessions granted to the Company by another country, the Company’s interests could decrease in value or be lost. Even the Company’s smaller international assets or exploration opportunities may affect its overall business and results of operations by distracting management’s attention from its more significant assets.
While the Company has not suffered any material losses as a result of cyberattacks, there is no assurance that the Company will not suffer such losses in the future. Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects.
Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects. The Company is involved in several large development projects, and the completion of these projects may be delayed beyond the Company’s anticipated completion dates.
The Company’s future access to capital, as well as that of its partners and contractors, could be limited if the debt or equity markets are constrained. This could significantly delay development of the Company’s property interests. The Company’s syndicated revolving credit facilities currently mature in January 2030.
The Company’s future access to capital, as well as that of its partners and contractors, could be limited if the debt or equity markets are constrained or if financial institutions, investors, or insurers limit exposure to oil and gas companies or modify underwriting standards in response to climate-related or other policy developments.
Management has previously determined, and may in the future determine, that future drilling or development activities will not, or are unlikely to, occur for a well or reservoir, based on drilling results, current or future estimated commodity prices or demand for oil, natural gas, and NGLs, or other information.
Management has previously determined, and may in the future determine, that wells or development projects have failed to meet expected economic thresholds because of drilling results, cost inflation, commodity price volatility, revised development plans, demand for oil, natural gas, and NGLs, or other information, and in such cases, the Company may elect not to pursue or complete those activities.
RISKS RELATED TO INTERNATIONAL OPERATIONS International operations have uncertain political, economic, and other risks. The Company’s operations outside the U.S. are based primarily in Egypt and the U.K., with significant exploration and appraisal activities offshore Suriname.
The Company’s operations outside the U.S. are based primarily in Egypt and the U.K., with significant exploration, appraisal, and development activities offshore Suriname, which involve long-cycle projects with significant capital requirements and are subject to host-government approvals and fiscal and contractual frameworks that may evolve over time.
Effective January 1, 2024, the Company is subject to the Corporate AMT. Accordingly, any resulting Corporate AMT liability could adversely affect the Company’s future financial results, including earnings and cash flows.
Effective January 1, 2024, the Company is subject to the Corporate AMT.
GENERAL RISK FACTORS Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover.
For additional details, including discussion of foreign exchange contracts entered into by the Company, see the information set forth under “Foreign Currency Exchange Rate Risk” in Part II, Item 7A—Quantitative and Qualitative Disclosures About Market Risk . GENERAL RISK FACTORS Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover.
The Company’s reserves estimates are based on 12-month average prices, except where contractual arrangements exist, causing reserves quantities to change when actual prices increase or decrease.
The Company’s reserves estimates are based on 12-month average prices, except where contractual arrangements exist, consistent with applicable SEC pricing and reporting rules. Therefore, changes in future commodity prices or in development plans can materially impact reported reserves.
If a significant portion of the Company’s workforce cannot effectively perform their responsibilities, whether resulting from a lack of physical or virtual access, quarantines, illnesses, governmental actions or restrictions (including vaccine mandates and the reactions thereto), or other restrictions or adverse impacts resulting from a pandemic, the Company’s business, financial condition, cash flows, and results of operations may be materially adversely affected. 20 RISKS RELATED TO OPERATIONS AND DEVELOPMENT PROJECTS The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents.
RISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents.
Removed
The market prices for crude oil, natural gas, and NGLs depend on factors beyond the Company’s control.
Added
The Company’s ability to sell crude oil, natural gas, or NGLs, receive market prices for these commodities, meet volume commitments under transportation services agreements, and/or economically market third-party volumes may be adversely affected by pipeline and gathering system capacity changes, the inability to procure and resell volumes economically, various transportation interruptions or expansions, and the financial distress or insolvency of midstream or transportation providers that could reduce available capacity or disrupt service.
Removed
Low prices have previously adversely affected and could from time to time in the future adversely affect the Company’s revenues, operating income, cash flow, and proved reserves, and a prolonged period of low prices could have a material adverse impact on the Company’s results of operations and cash flows and limit its ability to fund capital expenditures.
Added
As additional gas pipeline takeaway capacity in the Permian Basin comes online, the spread between Permian and Gulf Coast gas prices may compress, which would reduce the Company’s gain on third-party oil and gas purchases and sales.
Removed
Additionally, the Company’s operations rely on its workforce having access to its wells, platforms, structures, offices, and facilities.
Added
The Company’s commodity price and other risk management and trading activities, including interest rate and foreign exchange hedging, and contracts priced in foreign currencies may prevent it from benefiting fully from price increases and market movements and may expose it to other risks.
Removed
The other parties to these arrangements may have economic, business, or legal interests or goals that are inconsistent with the Company’s, and, therefore, decisions may be made that the Company does not believe are in its best interest.
Added
Similarly, to the extent the Company enters into derivative contracts to manage exposure to interest rate or foreign exchange risk or enters into contracts priced in a foreign currency, it may be limited in its ability to benefit from favorable movements in interest rates or currency exchange rates or may incur additional expense converting to a foreign currency to fund contractual obligations.
Removed
A ratings downgrade could adversely impact the Company’s ability to access debt markets in the future and increase the cost of future debt. During 2024, Standard and Poor’s upgraded the Company’s rating to BBB-/Stable, Moody’s affirmed the Company’s rating at Baa3/Stable, and Fitch affirmed the Company’s rating at BBB-/Stable.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeGiven the Cybersecurity Committee’s chair’s previous military experience in positions relevant to information security and his NACD-sponsored CERT Certificate in Cybersecurity Oversight from Carnegie Mellon University’s Software Engineering Institute, the committee benefits from his perspectives, skills, and training when reviewing and managing the Company’s exposure to cybersecurity risks. 29 As stated in its charter, the Cybersecurity Committee’s responsibilities include: • providing oversight of the Company’s cybersecurity policies, procedures, and plans, including the quality and effectiveness of the cybersecurity program; • reviewing the Company’s policies and procedures related to its preparation for, defense against, response to, and recovery from material cybersecurity incidents; • reviewing with management the plans and methodology for periodic assessments of the Company’s cybersecurity program by outside professionals, including the findings of such assessments and plans to remediate any material deficiencies identified by such assessments; • overseeing the Company’s management of risks related to its cybersecurity systems and processes; • reviewing with management any cybersecurity insurance program the Company may procure, including with respect to coverage and limits; and • overseeing the preparation of the Company’s disclosures in its reports filed with the Securities and Exchange Commission relating to the Company’s cybersecurity systems.
Biggest changeAs stated in its charter, the Cybersecurity Committee’s responsibilities include: • providing oversight of the Company’s cybersecurity policies, procedures, and plans, including the quality and effectiveness of the cybersecurity program; • reviewing the Company’s policies and procedures related to its preparation for, defense against, response to, and recovery from material cybersecurity incidents; • reviewing with management the plans and methodology for periodic assessments of the Company’s cybersecurity program by outside professionals, including the findings of such assessments and plans to remediate any material deficiencies identified by such assessments; • overseeing the Company’s management of risks related to its cybersecurity systems and processes; • reviewing with management any cybersecurity insurance program the Company may procure, including with respect to coverage and limits; and • overseeing the preparation of the Company’s disclosures in its reports filed with the Securities and Exchange Commission relating to the Company’s cybersecurity systems.
ITEM 1C. CYBERSECURITY Risk Management and Strategy The Company maintains a cybersecurity program that establishes safeguards for protecting the confidentiality, integrity, and availability of the Company’s data, technology, and information systems, and the material risks associated with the threats identified from time to time under the cybersecurity program are incorporated into the Company’s corporate risk register.
ITEM 1C. CYBERSECURITY 29 Risk Management and Strategy The Company maintains a cybersecurity program that establishes safeguards for protecting the confidentiality, integrity, and availability of the Company’s data, technology, and information systems, and the material risks associated with the threats identified from time to time under the cybersecurity program are incorporated into the Company’s corporate risk register.
For additional information regarding relevant cybersecurity risks, see Item 1A―Risk Factors ― “ A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations .” 30
For additional information regarding relevant cybersecurity risks, see Item 1A―Risk Factors ― “ A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations .”
He manages the Company’s Information Security Team, which comprises cybersecurity professionals responsible for the day-to-day operation of the Company’s cybersecurity program and managing the Company’s threat intelligence, vulnerability management, forensics, and security architecture systems. APA’s Executive Vice President, Administration, has 35 years of experience managing data and technology in the energy industry, including serving as the Company’s CIO from 2015-2020.
He manages the Company’s Information Security Team, which comprises cybersecurity professionals responsible for the day-to-day operation of the Company’s cybersecurity program and managing the Company’s threat intelligence, vulnerability management, forensics, and security architecture systems. APA’s Executive Vice President, Administration, has 36 years of experience managing data and technology in the energy industry, including serving as the Company’s CIO from 2015-2020.
As of December 31, 2024, no risks from cybersecurity threats or incidents have materially affected or are reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition.
As of December 31, 2025, no risks from cybersecurity threats or incidents have materially affected or are reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition.
In addition, in exercising its oversight responsibilities, the Cybersecurity Committee has full access to Company management and may inquire into any matter that it considers to be of material concern to the committee or the full Board of Directors.
In addition, in exercising its oversight responsibilities, the Cybersecurity Committee has full access to Company management and may inquire into any matter that it considers to be of material concern to the committee or the full Board of Directors. 30 The Cybersecurity Committee reports regularly to the full Board of Directors, with respect to such matters as are relevant to the committee’s discharge of its responsibilities and with respect to such recommendations as the committee deems appropriate for consideration by the Board of Directors.
Removed
The Cybersecurity Committee reports regularly to the full Board of Directors, with respect to such matters as are relevant to the committee’s discharge of its responsibilities and with respect to such recommendations as the committee deems appropriate for consideration by the Board of Directors.
Added
Given the Cybersecurity Committee’s chair’s previous military experience in positions relevant to information security and his NACD-sponsored CERT Certificate in Cybersecurity Oversight from Carnegie Mellon University’s Software Engineering Institute, the committee benefits from his perspectives, skills, and training when reviewing and managing the Company’s exposure to cybersecurity risks.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS The information set forth under “Legal Matters” and “Environmental Matters” in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K is incorporated herein by reference.
Biggest changeITEM 3. LEGAL PROCEEDINGS The information set forth under “Legal Matters” and “Environmental Matters” in Note 10—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K is incorporated herein by reference.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+1 added−1 removed5 unchanged
Biggest changePeriod Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1 to January 31, 2024 2,226,352 $ 34.22 2,226,352 41,693,267 February 1 to February 29, 2024 784,765 30.59 784,765 40,908,502 March 1 to March 31, 2024 — — — 40,908,502 April 1 to April 30, 2024 — — — 40,908,502 May 1 to May 31, 2024 — — — 40,908,502 June 1 to June 30, 2024 1,480,072 28.72 1,480,072 39,428,430 July 1 to July 31, 2024 102,305 29.33 102,305 39,326,125 August 1 to August 31, 2024 — — — 39,326,125 September 1 to September 30, 2024 — — — 39,326,125 October 1 to October 31, 2024 — — — 39,326,125 November 1 to November 30, 2024 2,588,969 22.20 2,588,969 36,737,156 December 1 to December 31, 2024 1,980,034 21.52 1,980,034 34,757,122 Total 9,162,497 $ 26.83 (1) During the fourth quarter of 2021, the Company's Board of Directors authorized the purchase of 40 million shares of the Company's common stock.
Biggest changePeriod Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1 to January 31, 2025 1,670,918 $ 23.95 1,670,918 33,086,204 February 1 to February 29, 2025 2,470,913 22.34 2,470,913 30,615,291 March 1 to March 31, 2025 232,741 20.63 232,741 30,382,550 April 1 to April 30, 2025 603,233 16.59 603,233 29,779,317 May 1 to May 31, 2025 — — — 29,779,317 June 1 to June 30, 2025 2,096,211 19.09 2,096,211 27,683,106 July 1 to July 31, 2025 989,196 19.31 989,196 26,693,910 August 1 to August 31, 2025 1,214,309 19.92 1,214,309 25,479,601 September 1 to September 30, 2025 910,343 23.54 910,343 24,569,258 October 1 to October 31, 2025 997,815 23.53 997,815 23,571,443 November 1 to November 30, 2025 814,830 23.80 814,830 22,756,613 December 1 to December 31, 2025 890,475 25.23 890,475 21,866,138 Total 12,890,984 $ 21.73 (1) During the fourth quarter of 2021, the Company's Board of Directors authorized the purchase of 40 million shares of the Company's common stock.
Information concerning securities authorized for issuance under equity compensation plans is set forth under the caption “Equity Compensation Plan Information” in the proxy statement relating to the Company’s 2025 annual meeting of stockholders, which is incorporated herein by reference.
Information concerning securities authorized for issuance under equity compensation plans is set forth under the caption “Equity Compensation Plan Information” in the proxy statement relating to the Company’s 2026 annual meeting of stockholders, which is incorporated herein by reference.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among APA Corporation, the S&P 500 Index, and the Dow Jones U.S. Exploration & Production Index * $100 invested on 12/31/19 in stock or index, including reinvestment of dividends.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among APA Corporation, the S&P 500 Index, and the Dow Jones U.S. Exploration & Production Index * $100 invested on 12/31/20 in stock or index, including reinvestment of dividends.
Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by APA during 2024.
Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by APA during 2025.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES APA’s common stock, par value $0.625 per share, is traded on the Nasdaq Global Select Market (Nasdaq) under the symbol “APA.” The closing price of APA’s common stock, as reported by the Nasdaq for January 31, 2025, was $21.93 per share.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES APA’s common stock, par value $0.625 per share, is traded on the Nasdaq Global Select Market (Nasdaq) under the symbol “APA.” The closing price of APA’s common stock, as reported by the Nasdaq for January 31, 2026, was $26.41 per share.
Exploration & Production Index (formerly Dow Jones Secondary Oil Stock Index) from December 31, 2019, through December 31, 2024.
Exploration & Production Index (formerly Dow Jones Secondary Oil Stock Index) from December 31, 2020, through December 31, 2025.
As of January 31, 2025, there were 364,064,316 shares of APA’s common stock outstanding held by approximately 3,700 stockholders of record and 243,000 beneficial owners. The Company has paid cash dividends on its common stock for 60 consecutive years through December 31, 2024.
As of January 31, 2026, there were 353,251,476 shares of APA’s common stock outstanding held by approximately 3,500 stockholders of record and 282,000 beneficial owners. The Company has paid cash dividends on its common stock for 61 consecutive years through December 31, 2025.
Removed
Fiscal year ending December 31. 2019 2020 2021 2022 2023 2024 APA Corporation $ 100.00 $ 56.30 $ 107.40 $ 189.58 $ 149.35 $ 99.41 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 Dow Jones U.S. Exploration & Production Index 100.00 66.35 113.41 180.98 189.15 186.27
Added
Fiscal year ending December 31. 2020 2021 2022 2023 2024 2025 APA Corporation $ 100.00 $ 190.76 $ 336.73 $ 265.27 $ 176.57 $ 196.71 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 Dow Jones U.S. Exploration & Production Index 100.00 170.92 272.74 285.07 280.73 295.11

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeIn settling these offerings pursuant to their respective terms: • A PA issued new notes and debentures under its indentures in aggregate principal amounts of (i) $2.5 billion in exchange for Apache notes and debentures tendered and accepted in APA’s exchange offers, (ii) $203 million in exchange for Apache notes tendered in the cash tender offers in excess of the stated maximum purchase amount or series caps, and (iii) $850 million in the new notes offering, comprised of $350 million aggregate principal amount of APA’s 6.10% Notes due 2035 and $500 million aggregate principal amount of APA’s 6.75% Notes due 2055. • In addition to issuing the APA notes in the exchange offers, APA paid a total of $2.5 million in cash as part of the exchange consideration. • APA paid a total of $869 million in cash in the tender offers (comprised of tender offer consideration, exchange consideration for tendered notes exchanged, early participation premium, and accrued interest) for the aggregate $1 billion in principal amount of Apache notes tendered and accepted in the cash tender offers. • Net proceeds from the sale of the notes in APA’s new notes offering, after deducting the initial purchasers’ discounts and estimated offering expenses, were approximately $839 million and used to fund in part APA’s purchase of Apache notes in APA’s cash tender offers. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers has the same interest rate, maturity date, and interest payment dates and the same optional redemption prices (if any) as the corresponding series of Apache notes and debentures for which they were exchanged. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers and new notes offering are fully and unconditionally guaranteed by Apache until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than $1 billion. • APA entered into two registration rights agreements, one covering notes and debentures issued in APA’s exchange and tender offers and one covering notes issued in APA’s new notes offering (each a Registration Rights Agreement). 51 These offerings were not registered under the Securities Act of 1933, as amended (Securities Act), in reliance upon an exemption therefrom, and the APA notes and debentures issued pursuant to such offers are subject to certain transfer restrictions.
Biggest changeThe Company recognized a gain of $135 million on these purchases, including broker fees and loan costs. • Net proceeds from the sale of the notes in APA’s new notes offering, after deducting the initial purchasers’ discounts and estimated offering expenses, were approximately $839 million and used to fund in part APA’s purchase of Apache notes in APA’s cash tender offers. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers had the same interest rate, maturity date, and interest payment dates and the same optional redemption prices (if any) as the corresponding series of Apache notes and debentures for which they were exchanged. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers and new notes offering were fully and unconditionally guaranteed by Apache until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures was less than $1 billion, which occurred in May 2025, after which Apache’s guarantees were terminated in accordance with their terms on May 16, 2025. • APA entered into two registration rights agreements pursuant to which APA agreed to register under the Securities Act of 1933, as amended, the notes and debentures that APA issued in the exchange and tender offers and new notes offering (collectively, the Unregistered Notes).
As of December 31, 2024, there were $10 million of borrowings under the 2022 USD Agreement and an aggregate £303 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2024, there were no letters of credit outstanding under the USD Agreement.
As of December 31, 2024, there were $10 million of borrowings and no letters of credit outstanding under the 2022 USD Agreement, and no borrowings and an aggregate £303 million in letters of credit outstanding under the 2022 GBP Agreement.
For additional information regarding income taxes, refer to Note 10—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. The Company and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various states and foreign jurisdictions.
For additional information regarding income taxes, refer to Note 9—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. The Company and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various states and foreign jurisdictions.
Such changes could cause the bonding obligations of such parties to increase substantially, thereby causing a significant impact on the counterparties’ solvency and ability to continue as a going concern. Potential Decommissioning Obligations on Sold Properties The Company’s subsidiaries have potential exposure to future obligations related to divested properties.
Such changes could cause the bonding obligations of such parties to increase substantially, thereby causing a significant impact on the counterparties’ solvency and ability to continue as a going concern. 51 Potential Decommissioning Obligations on Sold Properties The Company’s subsidiaries have potential exposure to future obligations related to divested properties.
For a detailed discussion of the Company’s environmental and legal contingencies and other commitments, please see Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For a detailed discussion of the Company’s environmental and legal contingencies and other commitments, please see Note 10—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Liens on assets also are permitted if debt secured thereby does not exceed 15% of APA’s consolidated net tangible assets. • Negative covenants restrict APA’s ability to merge with another entity unless it is the surviving entity, a borrower’s disposition of substantially all of its assets, prohibitions on the ability of certain subsidiaries to make payments to borrowers, and guarantees by APA or certain subsidiaries of debt of non-consolidated entities in excess of the stated threshold. • Lenders may accelerate payment maturity and terminate lending and issuance commitments for nonpayment and other breaches; if a borrower or certain subsidiaries defaults on other indebtedness in excess of the stated threshold, has any unpaid, non-appealable judgment against it for payment of money in excess of the stated threshold, or has specified pension plan liabilities in excess of the stated threshold; or APA undergoes a specified change in control.
S. and Canada; liens on assets also are permitted if debt secured thereby does not exceed 15% of APA’s consolidated net tangible assets. 49 • Negative covenants restrict APA’s ability to merge with another entity unless it is the surviving entity, a borrower’s disposition of substantially all of its assets, prohibitions on the ability of certain subsidiaries to make payments to borrowers, and guarantees by APA or certain subsidiaries of debt of non-consolidated entities in excess of the stated threshold. • Lenders may accelerate payment maturity and terminate lending and issuance commitments for nonpayment and other breaches; if a borrower or certain subsidiaries defaults on other indebtedness in excess of the stated threshold, has any unpaid, non-appealable judgment against it for payment of money in excess of the stated threshold, or has specified pension plan liabilities in excess of the stated threshold; or APA undergoes a specified change in control.
The Company has elected not to disclose probable and possible reserves or reserve estimates in this filing. 57 Offshore Decommissioning Contingency The Company has potential exposure to future obligations related to divested properties.
The Company has elected not to disclose probable and possible reserves or reserve estimates in this filing. Offshore Decommissioning Contingency The Company has potential exposure to future obligations related to divested properties.
For information regarding pension or postretirement benefit obligations, refer to Note 12—Retirement and Deferred Compensation Plans in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. The Company is also subject to various contingent obligations that become payable only if certain events or rulings were to occur.
For information regarding pension or postretirement benefit obligations, refer to Note 11—Retirement and Deferred Compensation Plans in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. The Company is also subject to various contingent obligations that become payable only if certain events or rulings were to occur.
The inherent uncertainty surrounding the timing of and monetary impact associated with these events or rulings prevents any meaningful accurate measurement, which is necessary to assess settlements resulting from litigation. The Company’s management believes that it has adequately reserved for its contingent obligations, including approximately $2 million for environmental remediation and approximately $20 million for various contingent legal liabilities.
The inherent uncertainty surrounding the timing of and monetary impact associated with these events or rulings prevents any meaningful accurate measurement, which is necessary to assess settlements resulting from litigation. The Company’s management believes that it has adequately reserved for its contingent obligations, including approximately $2 million for environmental remediation and approximately $23 million for various contingent legal liabilities.
This requires management to make certain judgments about the selection of comparable assets, recent comparable asset transactions, and transaction premiums. 56 Although the fair value estimate of each asset group is based on assumptions believed to be reasonable, those assumptions are inherently unpredictable and uncertain, and actual results could differ from the estimate.
This requires management to make certain judgments about the selection of comparable assets, recent comparable asset transactions, and transaction premiums. 53 Although the fair value estimate of each asset group is based on assumptions believed to be reasonable, those assumptions are inherently unpredictable and uncertain, and actual results could differ from the estimate.
NGL production, which accounted for 98 percent of the Company’s total 2024 NGL production, is sold under contracts with prices at market indices based on Gulf Coast supply and demand conditions, less the costs for transportation and fractionation, or on a weighted-average sales price received by the purchaser.
NGL production, which accounted for 98 percent of the Company’s total 2025 NGL production, is sold under contracts with prices at market indices based on Gulf Coast supply and demand conditions, less the costs for transportation and fractionation, or on a weighted-average sales price received by the purchaser.
The Company is under audit by the Internal Revenue Service and in various states and foreign jurisdictions as part of its normal course of business. 44 Capital and Operational Outlook The Company continues to prudently manage its capital program against a volatile price environment and the effects of global inflation and rising interest rates.
The Company is under audit by the Internal Revenue Service and in various state and foreign jurisdictions as part of its normal course of business. 44 Capital and Operational Outlook The Company continues to prudently manage its capital program against a volatile price environment and the effects of global inflation and rising interest rates.
For information regarding the Company’s liability for dismantlement, abandonment, and restoration costs of oil and gas properties, refer to Note 8—Asset Retirement Obligation in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For information regarding the Company’s liability for dismantlement, abandonment, and restoration costs of oil and gas properties, refer to Note 7—Asset Retirement Obligation in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Finally, these reserves are the basis for the Company’s supplemental oil and gas disclosures. For more information regarding the Company’s supplemental oil and gas disclosures, refer to Note 17—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Finally, these reserves are the basis for the Company’s supplemental oil and gas disclosures. For more information regarding the Company’s supplemental oil and gas disclosures, refer to Note 16—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Subsequent Event—APA Exchange and Tender Offers for Apache Indenture Debt On January 10, 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures issued by Apache under its indentures. The Company also then settled its private offering of new notes to fund in part its purchase of Apache notes in APA’s cash tender offers.
APA Exchange and Tender Offers for Apache Indenture Debt On January 10, 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures issued by Apache under its indentures. The Company also then settled its private offering of new notes to fund in part its purchase of Apache notes in APA’s cash tender offers.
The Company’s estimates of proved reserves, proved developed reserves, and PUD reserves as of December 31, 2024, 2023, and 2022, changes in estimated proved reserves during the last three years, and estimates of future net cash flows from proved reserves are contained in Note 17—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
The Company’s estimates of proved reserves, proved developed reserves, and PUD reserves as of December 31, 2025, 2024, and 2023, changes in estimated proved reserves during the last three years, and estimates of future net cash flows from proved reserves are contained in Note 16—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Commodity prices also affect industry activity and demand, thus indirectly impacting the cost of items such as rig rates, labor, boats, helicopters, materials, and supplies. Crude oil, which accounted for 54 percent of the Company’s total 2024 production, is inherently more expensive to produce than natural gas. Repair and maintenance costs are typically higher on offshore properties.
Commodity prices also affect industry activity and demand, thus indirectly impacting the cost of items such as rig rates, labor, boats, helicopters, materials, and supplies. Crude oil, which accounted for 51 percent of the Company’s total 2025 production, is inherently more expensive to produce than natural gas. Repair and maintenance costs are typically higher on offshore properties.
During the same period, the Company averaged 20 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency.
During the same period, the Company averaged 19 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K are incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of APA Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (filed with the SEC on February 22, 2024).
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K are incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of APA Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (filed with the SEC on February 28, 2025).
The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide the Company the ability to timely respond to near-term price volatility and effectively manage its investment programs accordingly.
The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide the Company the ability to timely respond to price volatility and effectively manage its investment programs.
The properties are located in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf. • Non-core Acreage Divestiture During 2024, the Company completed the sale of non-core acreage in the East Texas Austin Chalk and Eagle Ford plays that had a carrying value of $347 million for aggregate cash proceeds of $255 million and the assumption of asset retirement obligations of $42 million. • Mineral Rights Divestiture During 2024, the Company also completed the sale of non-core mineral and royalty interests in the Permian Basin that had a carrying value of $71 million for approximately $394 million subject to post-closing adjustments. • Sales of Kinetik Shares During 2022 and 2023, the Company sold a portion of its Kinetik Shares for cash proceeds of $224 million and $228 million, respectively.
The properties are located in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf. • Non-core Acreage Divestiture During 2024, the Company completed the sale of non-core acreage in the East Texas Austin Chalk and Eagle Ford plays that had a carrying value of $347 million for aggregate cash proceeds of $255 million and the assumption of asset retirement obligations of $42 million. • Mineral Rights Divestiture During 2024, the Company also completed the sale of non-core mineral and royalty interests in the Permian Basin that had a carrying value of $71 million for approximately $394 million subject to post-closing adjustments. • Sales of Kinetik Shares During 2023, the Company sold a portion of its Kinetik Holdings Inc.
During the first quarter of 2024, the Company sold its remaining shares of Kinetik Class A Common Stock for cash proceeds of $428 million. On April 3, 2024, the Company’s designated director resigned from the Kinetik Holdings, Inc. (Kinetik) board of directors.
(Kinetik) Class A Common Stock (Kinetik Shares) for cash proceeds of $228 million. During the first quarter of 2024, the Company sold its remaining Kinetik Shares for cash proceeds of $428 million. On April 3, 2024, the Company’s designated director resigned from the Kinetik board of directors.
As of December 31, 2024, Apache estimates that its potential liability to fund the remaining decommissioning of Legacy GOA Assets and assets previously sold to other operators ranges from $1.0 billion to $1.4 billion on an undiscounted basis. Management does not believe any specific estimate within this range is a better estimate than any other.
As of December 31, 2025, Apache estimates that its potential liability to fund the remaining decommissioning of Legacy GOA Assets and assets previously sold to other operators ranges from $0.9 billion to $1.2 billion on an undiscounted basis. Management does not believe any specific estimate within this range is a better estimate than any other.
This section of this Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
Significant changes in commodity prices impact the Company’s revenues, earnings, and cash flows. These changes potentially impact the Company’s liquidity if costs do not trend with sustained decreases in commodity prices. Historically, costs have trended with commodity prices, albeit on a lag. Sales volumes also impact cash flows; however, they have a less volatile impact in the short term.
These changes potentially impact the Company’s liquidity if costs do not trend with sustained decreases in commodity prices. Historically, costs have trended with commodity prices, albeit on a lag. Sales volumes also impact cash flows; however, they have a less volatile impact in the short term.
For additional information refer to Note 13—Capital Stock in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For additional information on the Company’s stock compensation, refer to Note 12—Capital Stock in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
The Company also recognized losses on previously sold Gulf of America properties of $212 million and $157 million during 2023 and 2022, respectively, in the Company’s statement of consolidated operations. 55 Insurance Program The Company maintains insurance policies that include coverage for physical damage to its assets, general liabilities, workers’ compensation, employers’ liability, sudden and accidental pollution, and other risks.
The Company recognized losses on previously sold Gulf of America properties of $273 million and $212 million during 2024 and 2023, respectively, in the Company’s statement of consolidated operations. 52 Insurance Program The Company maintains insurance policies that include coverage for physical damage to its assets, general liabilities, workers’ compensation, employers’ liability, sudden and accidental pollution, and other risks.
Proceeds from Asset Divestitures The Company received $1.6 billion and $29 million in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2024 and 2023, respectively.
Proceeds from Asset Divestitures The Company received $611 million and $1.6 billion in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2025 and 2024, respectively.
The Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns. • 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 while still recognizing the importance of longer-term balance sheet strengthening. • The Company pays a quarterly dividend of $0.25 per share on its common stock. • Beginning in the fourth quarter of 2021 and through the end of 2024, the Company has repurchased 85.3 million shares of the Company’s common stock.
Additionally, the Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns. • 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 while still recognizing the importance of longer-term balance sheet strengthening. • The Company paid a quarterly dividend of $0.25 per share on its common stock during 2025. • Beginning in the fourth quarter of 2021 and through the end of 2025, the Company has repurchased 98.2 million shares of the Company’s common stock.
This ratio is not reflective of the price ratio between the two products. (2) Average sales volumes from the North Sea were 33,954 boe/d, 45,476 boe/d, and 40,812 boe/d for 2024 , 2023, and 2022, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
This ratio is not reflective of the price ratio between the two products. (2) Average sales volumes from the North Sea were 31,168 boe/d, 33,954 boe/d, and 45,476 boe/d for 2025 , 2024, and 2023, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
As of December 31, 2024, the Company recorded an asset of $178 million representing the remaining amount the Company expects to be reimbursed from security related to these decommissioning costs.
As of December 31, 2025, the Company recorded an asset of $40 million representing the remaining amount the Company expects to be reimbursed from remaining security related to these decommissioning costs.
Changes in significant assumptions impacting Apache’s estimated liability, including expected well decommissioning spread rates, derrick barge rates, and planned abandonment logistics, could result in a liability in excess of the amount accrued.
Changes in significant assumptions impacting Apache’s estimated liability, including expected well decommissioning spread rates, derrick barge rates, planned abandonment logistics, and future cash flows of GOM Shelf, could result in a liability in excess of the amount accrued.
Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices). 58
Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. 55
Of the total liability recorded as of December 31, 2024, $929 million is reflected under the caption “Decommissioning contingency for sold Gulf of America properties” and $88 million is reflected under “Other current liabilities” in the Company’s consolidated balance sheet.
Of the total liability recorded as of December 31, 2025, $782 million is reflected under the caption “Decommissioning contingency for sold Gulf of America properties” and $99 million is reflected under “Other current liabilities” in the Company’s consolidated balance sheet.
Accordingly, the Company recorded contingent liabilities in the amounts of $1.0 billion and $824 million as of December 31, 2024, and December 31, 2023, respectively.
Accordingly, the Company recorded contingent liabilities in the amounts of $881 million and $1.0 billion as of December 31, 2025, and December 31, 2024, respectively.
Treasury Stock Activity, Net During 2024, the Company repurchased 9.2 million shares at an average price of $26.83 per share totaling $246 million, and as of December 31, 2024, the Company had remaining authorization to repurchase 34.8 million shares.
Treasury Stock Activity, Net During 2025, the Company repurchased 12.9 million shares at an average price of $21.73 per share totaling $280 million, and as of December 31, 2025, the Company had remaining authorization to repurchase 21.9 million shares. During 2024, the Company repurchased 9.2 million shares at an average price of $26.83 per share totaling $246 million.
Average realized crude oil prices for 2024 were down 3 percent compared to 2023, a direct result of decreasing benchmark oil prices over the past year. Crude oil prices realized in 2024 averaged $78.08 per barrel. Continued volatility in the commodity price environment reinforces the importance of the Company’s asset portfolio.
Average realized crude oil prices for 2025 were down 14 percent compared to 2024, a direct result of decreasing benchmark oil prices over the past year. Crude oil prices realized in 2025 averaged $66.92 per barrel. Continued volatility in the commodity price environment reinforces the importance of the Company’s asset portfolio.
The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties and other long-lived assets. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations.
The liability is offset by a corresponding increase in the underlying asset. The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties and other long-lived assets. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations.
For additional information, refer to Part I, Items 1 and 2—Business and Properties and Part I, Item 1A—Risk Factors of this Annual Report on Form 10-K. 45 Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2024 2023 2022 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 3,620 $ 3,129 $ 4,943 Proceeds from commercial paper and revolving credit facilities, net — — 24 Proceeds from asset divestitures 1,609 29 778 Proceeds from term loan facility 1,500 — — Proceeds from sale of Kinetik shares 428 228 224 Total Sources of Cash and Cash Equivalents 7,157 3,386 5,969 Uses of Cash and Cash Equivalents: Additions to oil and gas property (1) 2,851 2,313 1,770 Acquisition of Delaware Basin properties — 24 591 Leasehold and property acquisitions 60 20 37 Payments on term loan facility 600 — — Payments on commercial paper and revolving credit facilities, net 40 194 — Payments on Callon Credit Agreement 472 — — Payments on fixed-rate debt 1,641 65 1,493 Dividends paid to APA common stockholders 353 308 207 Distributions to noncontrolling interest – Egypt 268 238 362 Treasury stock activity, net 246 329 1,423 Deconsolidation of Altus cash and cash equivalents — — 143 Other, net 88 53 — Total Uses of Cash and Cash Equivalents 6,619 3,544 6,026 Increase (decrease) in cash and cash equivalents $ 538 $ (158) $ (57) (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
For additional information, refer to Part I, Items 1 and 2—Business and Properties and Part I, Item 1A—Risk Factors of this Annual Report on Form 10-K. 45 Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2025 2024 2023 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 4,545 $ 3,620 $ 3,129 Fixed-rate debt borrowings 846 — — Proceeds from asset divestitures 611 1,609 29 Proceeds from term loan facility — 1,500 — Proceeds from sale of Kinetik shares — 428 228 Total Sources of Cash and Cash Equivalents 6,002 7,157 3,386 Uses of Cash and Cash Equivalents: Additions to oil and gas property (1) 2,740 2,851 2,313 Acquisition of Delaware Basin properties — — 24 Leasehold and property acquisitions 26 60 20 Payments on term loan facility 900 600 — Payments on commercial paper and revolving credit facilities, net 333 40 194 Payments on Callon Credit Agreement — 472 — Payments on fixed-rate debt 1,016 1,641 65 Dividends paid to APA common stockholders 360 353 308 Distributions to noncontrolling interest 430 268 238 Treasury stock activity, net 280 246 329 Other, net 26 88 53 Total Uses of Cash and Cash Equivalents 6,111 6,619 3,544 Increase (decrease) in cash and cash equivalents $ (109) $ 538 $ (158) (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase. Debt As of December 31, 2024, the Company had $6.0 billion in total debt outstanding, which consisted of notes and debentures of Apache, credit facility borrowings, and finance lease obligations.
The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase. Debt As of December 31, 2025, the Company had $4.5 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache, and finance lease obligations.
APA’s Long-Term Debt Rating currently applies, and the Base Rate Margin is 0.30%, the Applicable Margin is 1.30%, and the facility fee is 0.20%. 50 Borrowers under each 2025 Agreement, which include certain subsidiaries of APA, may borrow, prepay, and reborrow loans and obtain letters of credit, and APA may obtain letters of credit for the account of its subsidiaries, in each case subject to representations and warranties, covenants, and events of default, such as: • A financial covenant requires APA to maintain an adjusted debt-to-capital ratio of not greater than 65% at the end of any fiscal quarter. • A negative covenant restricts the ability of APA and its subsidiaries to create liens securing debt on their hydrocarbon-related assets, with customary exceptions and exceptions for liens on subsidiary assets located outside of the U.
Borrowers under each 2025 Agreement, which include certain subsidiaries of APA, may borrow, prepay, and reborrow loans and obtain letters of credit, and APA may obtain letters of credit for the account of its subsidiaries, in each case subject to representations and warranties, covenants, and events of default, such as: • A financial covenant requires APA to maintain an adjusted debt-to-capital ratio of not greater than 65% at the end of any fiscal quarter. • A negative covenant restricts the ability of APA and its subsidiaries to create liens securing debt on their hydrocarbon-related assets, with customary exceptions and exceptions for liens on subsidiary assets located outside of the U.
In addition, after such sources have been exhausted, Apache agreed upon 54 resolution of GOM Shelf’s second bankruptcy to provide a standby loan to GOM Shelf of up to $400 million to perform decommissioning, with such standby loan secured by a first and prior lien on the Legacy GOA Assets.
In addition, after such sources have been exhausted, Apache agreed upon resolution of GOM Shelf’s second bankruptcy to loan GOM Shelf up to $400 million to perform decommissioning, with such loans and related obligations secured by first and prior liens on the Legacy GOA Assets.
Customary letter of credit fronting fees and other charges are payable to issuing banks. Margins and facility fees are at varying rates per annum determined by reference to the senior, unsecured, non-credit enhanced, long-term indebtedness for borrowed money of APA, or if such indebtedness is not rated and the Apache guaranty is in effect, of Apache (Long-Term Debt Rating).
Customary letter of credit fronting fees and other charges are payable to issuing banks. Margins and facility fees are at varying rates per annum determined by reference to the senior, unsecured, non-credit enhanced, long-term indebtedness for borrowed money of APA (Long-Term Debt Rating).
Payments on Fixed-Rate Debt In April and May of 2024, the Company financed Callon’s repayment pursuant to Callon’s cash tender offers for, and redemptions of all senior notes issued under Callon’s indentures for an aggregate cash payment of $1.6 billion, reflecting principal amounts, premium to par, and associated fees.
During 2024, the Company financed Callon’s repayment pursuant to Callon’s cash tender offers for, and redemptions of all senior notes issued under Callon’s indentures for an aggregate cash payment of $1.6 billion, reflecting principal amounts, premium to par, and associated fees.
Impairments During 2024, the Company recorded $1.1 billion of impairments, which included $796 million of oil and gas property impairments in the North Sea, a $315 million impairment of certain oil and gas properties in the U.S. to agreed-upon proceeds for their disposition, and $18 million of inventory impairments in the North Sea and U.S.
During 2024, the Company recorded $1.1 billion of impairments, which included $796 million of oil and gas property impairments in the North Sea, a $315 million impairment of certain oil and gas properties in the U.S. held-for-sale, and $18 million of inventory impairments in the North Sea and U.S.
Payments on Term Loan Facility During 2024, the Company made payments of $600 million on its syndicated term loan credit agreement. For additional details of the credit agreement, see “ Unsecured Committed Term Loan Facility” in the Liquidity section below.
Payments on Term Loan Facility During 2025 and 2024, the Company made payments of $900 million and $600 million, respectively, on its syndicated term loan credit agreement and fully repaid the term loans. For additional details of this credit agreement, see “ Unsecured Committed Term Loan Facility” in the Liquidity section below.
As of December 31, 2024, there were £640 million and $11 million in letters of credit outstanding under these facilities.
As of December 31, 2025 and 2024, there were no outstanding borrowings under these facilities. As of December 31, 2025, there were £901 million and $10 million in letters of credit outstanding under these facilities. As of December 31, 2024, there were £640 million and $11 million in letters of credit outstanding under these facilities.
For the Year Ended December 31, 2024 2023 2022 (In millions) Lease operating expenses $ 1,690 $ 1,436 $ 1,444 Gathering, processing, and transmission 432 334 367 Purchased oil and gas costs 1,047 742 1,776 Taxes other than income 270 207 268 Exploration 313 195 305 General and administrative 372 351 483 Transaction, reorganization, and separation 168 15 26 Depreciation, depletion, and amortization: Oil and gas property and equipment 2,235 1,500 1,186 Gathering, processing, and transmission assets 6 6 15 Other assets 25 34 32 Asset retirement obligation accretion 148 116 117 Impairments 1,129 61 — Financing costs, net 367 312 379 Lease Operating Expenses (LOE) LOE includes several key components, such as direct operating costs, repairs and maintenance, and workover costs.
For the Year Ended December 31, 2025 2024 2023 (In millions) Lease operating expenses $ 1,504 $ 1,690 $ 1,436 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 Transaction, reorganization, and separation 102 168 15 Depreciation, depletion, and amortization: Oil and gas property and equipment 2,275 2,235 1,500 Gathering, processing, and transmission assets 6 6 6 Other assets 23 25 34 Asset retirement obligation accretion 158 148 116 Impairments 44 1,129 61 Financing costs, net 113 367 312 Lease Operating Expenses (LOE) LOE includes several key components, such as direct operating costs, repairs and maintenance, and workover costs.
Uncertainties in the global supply chain and financial markets, including the impact of ongoing international conflicts, inflation, trade disputes, and actions taken by foreign oil and gas producing nations, including OPEC+, impact oil supply and demand and contribute to commodity price volatility.
Uncertainties in the global supply chain and financial markets impact oil supply and demand and contribute to commodity price volatility. These uncertainties include the impacts of ongoing international conflicts, inflation, current and potential tariffs or other trade barriers, global trade policies and disputes, and actions taken by foreign oil and gas producing nations, including OPEC+.
Fergus entry point of the national grid on a National Balancing Point index price basis. The Company’s North Sea operations averaged $10.84 per Mcf in 2024, a 17 percent decrease from an average of $13.02 per Mcf in 2023. 39 NGL Prices The Company’s U.S.
Fergus entry point of the national grid on a National Balancing Point index price basis. The Company’s North Sea operations averaged $12.03 per Mcf in 2025, a 11 percent increase from an average of $10.84 per Mcf in 2024. 39 NGL Prices The Company’s U.S.
The Company recognized $273 million of “Losses on previously sold Gulf of America properties” during 2024 to reflect the net impact of an increase in estimated decommissioning costs of Legacy GOA Assets which BSSE may order the Company to decommission.
The Company recognized $60 million of “Gains on previously sold Gulf of America properties” during 2025 to reflect the net impact of decreased estimated decommissioning costs of Legacy GOA Assets which BSSE may order the Company to decommission.
As of December 31, 2023, there were $372 million of borrowings under the 2022 USD Agreement, and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2023, there were no letters of credit outstanding under the 2022 USD Agreement.
As of December 31, 2025, there were no borrowings or letters of credit outstanding under the 2025 USD Agreement and no borrowings and an aggregate £1.0 million in letters of credit outstanding under the 2025 GBP Agreement.
For information regarding estimated potential decommissioning obligations on sold properties, please refer to “Potential Decommissioning Obligations on Sold Properties” above and in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For information regarding estimated potential decommissioning obligations on sold properties, please refer to “Potential Decommissioning Obligations on Sold Properties” above and in Note 10—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 54 The Company’s estimated contingent obligation is primarily associated with the abandonment, removal and decommissioning of offshore wells and platforms in the Gulf of America.
The CP Notes are sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance. As of December 31, 2024, the Company had $323 million in aggregate face amount of CP Notes outstanding, which is classified as long-term debt.
The CP Notes are sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance. As of December 31, 2025, the Company had no CP Notes outstanding.
(3) Gross oil, natural gas, and NGL production in Egypt were as follows: 2024 2023 2022 Oil (b/d) 137,150 141,985 137,260 Natural Gas (Mcf/d) 443,551 500,080 555,562 NGL (b/d) — — 297 (4) Includes net production volumes per day attributable to a noncontrolling interest in Egypt of: 2024 2023 2022 Oil (b/d) 29,698 29,739 28,200 Natural Gas (Mcf/d) 97,078 108,703 118,074 NGL (b/d) — — 65 NM — Not Meaningful 38 Pricing The following table presents pricing information by country: For the Year Ended December 31, 2024 Increase (Decrease) 2023 Increase (Decrease) 2022 Average Oil Price - Per barrel: United States $ 75.92 (2)% $ 77.84 (19)% $ 95.68 Egypt 80.41 (2)% 82.47 (19)% 101.25 North Sea 80.74 (2)% 82.75 (18)% 100.87 Total 78.08 (3)% 80.72 (19)% 99.11 Average Natural Gas Price - Per Mcf: United States $ 0.71 (61)% $ 1.80 (66)% $ 5.31 Egypt 2.94 1% 2.91 2% 2.85 North Sea 10.84 (17)% 13.02 (44)% 23.36 Total 1.97 (32)% 2.91 (42)% 4.98 Average NGL Price - Per barrel: United States $ 22.83 9% $ 20.85 (38)% $ 33.41 Egypt — NM — NM 76.80 North Sea 47.59 —% 47.77 (29)% 67.07 Total 23.37 8% 21.54 (38)% 34.51 NM — Not Meaningful Crude Oil Prices A substantial portion of the Company’s crude oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of the Company’s control.
(3) Gross oil, natural gas, and NGL production in Egypt were as follows: 2025 2024 2023 Oil (b/d) 125,511 137,150 141,985 Natural Gas (Mcf/d) 486,462 443,551 500,080 (4) Includes net production volumes per day attributable to a noncontrolling interest in Egypt of: 2025 2024 2023 Oil (b/d) 29,267 29,698 29,739 Natural Gas (Mcf/d) 117,035 97,078 108,703 (5) Production volumes per day in the Company’s Wildfire field were as follows: 2025 2024 2023 Oil (b/d) 29,023 19,970 15,644 Natural Gas (Mcf/d) 52,650 41,136 29,537 NGL (b/d) 10,127 7,540 5,622 38 Pricing The following table presents pricing information by country: For the Year Ended December 31, 2025 Increase (Decrease) 2024 Increase (Decrease) 2023 Average Oil Price - Per barrel: United States $ 65.71 (13)% $ 75.92 (2)% $ 77.84 Egypt 67.97 (15)% 80.41 (2)% 82.47 North Sea 69.31 (14)% 80.74 (2)% 82.75 Total 66.92 (14)% 78.08 (3)% 80.72 Average Natural Gas Price - Per Mcf: United States $ 1.02 44% $ 0.71 (61)% $ 1.80 Egypt 3.59 22% 2.94 1% 2.91 North Sea 12.03 11% 10.84 (17)% 13.02 Total 2.36 20% 1.97 (32)% 2.91 Average NGL Price - Per barrel: United States $ 22.13 (3)% $ 22.83 9% $ 20.85 North Sea 43.59 (8)% 47.59 —% 47.77 Total 22.71 (3)% 23.37 8% 21.54 Crude Oil Prices A substantial portion of the Company’s crude oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of the Company’s control.
For detailed information regarding APA’s acquisitions and divestitures, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 36 Results of Operations Oil, Natural Gas, and Natural Gas Liquids Production Revenues The Company’s production revenues and respective contribution to total revenues by country are as follows: For the Year Ended December 31, 2024 2023 2022 $ Value % Contribution $ Value % Contribution $ Value % Contribution ($ in millions) Oil Revenues: United States $ 3,572 51 % $ 2,241 37 % $ 2,458 36 % Egypt (1) 2,620 38 % 2,683 45 % 3,145 46 % North Sea 774 11 % 1,073 18 % 1,232 18 % Total (1) $ 6,966 100 % $ 5,997 100 % $ 6,835 100 % Natural Gas Revenues: United States $ 126 22 % $ 297 34 % $ 918 59 % Egypt (1) 313 53 % 346 39 % 370 23 % North Sea 145 25 % 237 27 % 281 18 % Total (1) $ 584 100 % $ 880 100 % $ 1,569 100 % NGL Revenues: United States $ 617 96 % $ 480 94 % $ 765 94 % Egypt (1) — — % — — % 6 1 % North Sea 29 4 % 28 6 % 45 5 % Total (1) $ 646 100 % $ 508 100 % $ 816 100 % Oil and Gas Revenues: United States $ 4,315 53 % $ 3,018 41 % $ 4,141 45 % Egypt (1) 2,933 36 % 3,029 41 % 3,521 38 % North Sea 948 11 % 1,338 18 % 1,558 17 % Total (1) $ 8,196 100 % $ 7,385 100 % $ 9,220 100 % (1) Includes revenues attributable to a noncontrolling interest in Egypt. 37 Production The following table presents production volumes by country: For the Year Ended December 31, 2024 Increase (Decrease) 2023 Increase (Decrease) 2022 Oil Volumes – b/d: United States 128,531 63% 78,889 12% 70,398 Egypt (3)(4) 89,027 —% 89,129 5% 85,081 North Sea 26,340 (24)% 34,728 7% 32,578 Total 243,898 20% 202,746 8% 188,057 Natural Gas Volumes – Mcf/d: United States 483,446 7% 452,281 (4)% 473,292 Egypt (3)(4) 291,011 (11)% 325,778 (9)% 356,327 North Sea 39,986 (20)% 50,284 42% 35,327 Total 814,443 (2)% 828,343 (4)% 864,946 NGL Volumes – b/d: United States 73,877 17% 62,997 —% 62,727 Egypt (3)(4) — NM — NM 196 North Sea 1,201 (3)% 1,240 12% 1,111 Total 75,078 17% 64,237 —% 64,034 BOE per day: (1) United States 282,983 30% 217,266 2% 212,007 Egypt (3)(4) 137,529 (4)% 143,425 (1)% 144,665 North Sea (2) 34,204 (23)% 44,349 12% 39,577 Total 454,716 12% 405,040 2% 396,249 (1) The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio.
For detailed information regarding APA’s acquisitions and divestitures, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 36 Results of Operations Oil, Natural Gas, and Natural Gas Liquids Production Revenues The Company’s production revenues and respective contribution to total revenues by country are as follows: For the Year Ended December 31, 2025 2024 2023 $ Value % Contribution $ Value % Contribution $ Value % Contribution ($ in millions) Oil Revenues: United States $ 3,010 52 % $ 3,572 51 % $ 2,241 37 % Egypt (1) 2,177 37 % 2,620 38 % 2,683 45 % North Sea 622 11 % 774 11 % 1,073 18 % Total (1) $ 5,809 100 % $ 6,966 100 % $ 5,997 100 % Natural Gas Revenues: United States $ 193 25 % $ 126 22 % $ 297 34 % Egypt (1) 460 60 % 313 53 % 346 39 % North Sea 117 15 % 145 25 % 237 27 % Total (1) $ 770 100 % $ 584 100 % $ 880 100 % NGL Revenues: United States $ 616 95 % $ 617 96 % $ 480 94 % North Sea 34 5 % 29 4 % 28 6 % Total (1) $ 650 100 % $ 646 100 % $ 508 100 % Oil and Gas Revenues: United States $ 3,819 53 % $ 4,315 53 % $ 3,018 41 % Egypt (1) 2,637 36 % 2,933 36 % 3,029 41 % North Sea 773 11 % 948 11 % 1,338 18 % Total (1) $ 7,229 100 % $ 8,196 100 % $ 7,385 100 % (1) Includes revenues attributable to a noncontrolling interest in Egypt. 37 Production The following table presents production volumes by country: For the Year Ended December 31, 2025 Increase (Decrease) 2024 Increase (Decrease) 2023 Oil Volumes – b/d: United States (5) 125,526 (2)% 128,531 63% 78,889 Egypt (3)(4) 87,719 (1)% 89,027 —% 89,129 North Sea 24,186 (8)% 26,340 (24)% 34,728 Total 237,431 (3)% 243,898 20% 202,746 Natural Gas Volumes – Mcf/d: United States (5) 514,502 6% 483,446 7% 452,281 Egypt (3)(4) 350,774 21% 291,011 (11)% 325,778 North Sea 31,318 (22)% 39,986 (20)% 50,284 Total 896,594 10% 814,443 (2)% 828,343 NGL Volumes – b/d: United States (5) 76,264 3% 73,877 17% 62,997 North Sea 1,256 5% 1,201 (3)% 1,240 Total 77,520 3% 75,078 17% 64,237 BOE per day: (1) United States (5) 287,539 2% 282,983 30% 217,266 Egypt (3)(4) 146,182 6% 137,529 (4)% 143,425 North Sea (2) 30,662 (10)% 34,204 (23)% 44,349 Total 464,383 2% 454,716 12% 405,040 (1) The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio.
Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, and safety considerations. ARO associated with retiring tangible long-lived assets is recognized as a liability in the period in which the legal obligation is incurred and becomes determinable. The liability is offset by a corresponding increase in the underlying asset.
Estimating the future restoration and removal costs is difficult and requires management to make estimates and judgments. Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, and safety considerations. ARO associated with retiring tangible long-lived assets is recognized as a liability in the period in which the legal obligation is incurred and becomes determinable.
Unsecured Committed Term Loan Facility On January 30, 2024, APA entered into a syndicated credit agreement under which the lenders committed an aggregate $2.0 billion for senior unsecured delayed-draw term loans to APA (Term Loan Credit Agreement) the proceeds of which could be used to refinance certain indebtedness of Callon only once upon the date of the closings under the Merger Agreement and Term Loan Credit Agreement.
Unsecured Committed Term Loan Facility On January 30, 2024, APA entered into a syndicated credit agreement providing for committed senior unsecured delayed-draw term loans to APA, the proceeds of which could be used to refinance certain indebtedness of Callon.
The Company has recorded material impairments of certain proved oil and gas properties and gathering, processing, and transmission facilities during 2024. For discussion of these impairments, see “Fair Value Measurements” of Note 1—Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For discussion of these impairments, see “Fair Value Measurements” of Note 1—Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
The increase in purchased oil and gas sales was primarily driven by increased oil volume sales coupled with activity associated with the Callon acquisition. 40 Operating Expenses The table below presents a comparison of the Company’s operating expenses for the years ended December 31, 2024, 2023, and 2022. All operating expenses include costs attributable to a noncontrolling interest in Egypt.
The increase in purchased oil and gas sales was primarily driven by higher natural gas prices at various delivery locations. 40 Operating Expenses The table below presents a comparison of the Company’s operating expenses for the years ended December 31, 2025, 2024, and 2023. All operating expenses include costs attributable to a noncontrolling interest in Egypt.
Average daily production in 2024 was 244 Mb/d, with prices averaging $78.08 per barrel. Crude oil sales accounted for 85 percent of the Company’s 2024 oil and gas production revenues and 54 percent of its worldwide production.
Average daily production in 2025 was 237 Mb/d, with prices averaging $66.92 per barrel. Crude oil sales accounted for 80 percent of the Company’s 2025 oil and gas production revenues and 51 percent of its worldwide production.
As of December 31, 2024, the Company had contractual obligations totaling $1.1 billion, of which $963 million is related to U.S. firm transportation contracts, $45 million is related to the merged concession agreement with the EGPC, and $110 million is related to other items.
As of December 31, 2025, the Company had contractual obligations totaling $971 million, of which $778 million is related to U.S. firm transportation contracts, $133 million is related to U.S. purchase obligations, $28 million is related to the merged concession agreement with the EGPC, and $32 million is related to other items.
Future success in maintaining and growing reserves and production is highly dependent on the success of the Company’s drilling program and its ability to add reserves economically. Changes in commodity prices also impact estimated quantities of proved reserves. For the year ended December 31, 2024, the Company recognized downward reserve revisions related to decreases in commodity prices during the year.
Future success in maintaining and growing reserves and production is highly dependent on the success of the Company’s drilling program and its ability to add reserves economically. Changes in commodity prices also impact estimated quantities of proved reserves.
The Company averaged nine drilling rigs in the U.S. during the year, including five rigs in the Southern Midland Basin and four rigs in the Delaware Basin, and drilled and brought online 159 operated wells in 2024.
The Company averaged approximately seven drilling rigs in the U.S. during the year, including four rigs in the Midland Basin and three rigs in the Delaware Basin, and drilled and brought online 154 operated wells in 2025.
As of December 31, 2023, there were £416 million and $2 million in letters of credit outstanding under these facilities. 48 Commercial Paper Program In December 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (the CP Notes) up to a maximum aggregate face amount of $1.8 billion outstanding at any time.
Commercial Paper Program The Company has a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (CP Notes) up to a maximum aggregate face amount of $2.0 billion outstanding at any time.
Payment of the CP Notes has been unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than US$1.0 billion.
Payment of the CP Notes was unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures was less than US$1.0 billion, which occurred in May 2025, after which Apache’s guarantees were terminated in accordance with their terms on June 20, 2025.
Crude Oil Revenues Crude oil revenues for 2024 totaled $7.0 billion, a $969 million increase from the 2023 total of $6.0 billion. A 20 percent higher average daily production increased 2024 revenues by $1.2 billion compared to 2023, while a 3 percent decrease in average realized prices reduced revenues by $196 million.
Crude Oil Revenues Crude oil revenues for 2025 totaled $5.8 billion, a $1.2 billion decrease from the 2024 total of $7.0 billion. A 14 percent decrease in average realized prices reduced 2025 revenues by $996 million compared to 2024, while a 3 percent lower average daily production decreased revenues by $161 million.
Purchased oil and gas sales were partially offset by associated purchase costs of $1.0 billion and $742 million for the years ended December 31, 2024 and 2023, respectively.
Sales related to purchased volumes increased $150 million for the year ended December 31, 2025 to $1.7 billion from $1.5 billion in 2024. Purchased oil and gas sales were partially offset by associated purchase costs of $1.1 billion and $1.0 billion for the years ended December 31, 2025 and 2024, respectively.
Net income in 2024 was primarily impacted by impairments of $1.1 billion, which included oil and gas property impairments of $796 million in the North Sea and $315 million in the U.S., and lower realized crude oil and natural gas prices during the year compared to 2023.
The increase in net income during 2025 was primarily the result of by $1.1 billion of impairments recorded in 2024, which included oil and gas property impairments of $796 million in the North Sea and $315 million in the U.S.
The Finance Act 2023 included amendments to the Energy Profits Levy that increased the levy from a 25 percent rate to a 35 percent rate, effective for the period of January 1, 2023 through March 31, 2028.
On January 10, 2023, Finance Act 2023 was enacted, receiving Royal Assent and included amendments to the Energy (Oil and Gas) Profits Levy Act of 2022 (the Energy Profits Levy), increasing the levy from a 25 percent rate to a 35 percent rate, effective for the period of January 1, 2023 through March 31, 2028.
Subsequent to year-end 2024 and through the date of this filing on February 28, 2025, the Company repurchased 3.9 million shares, and as of February 28, 2025, the Company had remaining authorization to repurchase up to 30.9 million shares under the Company’s share repurchase programs. 34 Financial and Operational Highlights During 2024, the Company reported net income attributable to common stock of $804 million, or $2.27 per diluted share, compared to net income of $2.9 billion, or $9.25 per diluted share, in 2023.
As of December 31, 2025, the Company had remaining authorization to repurchase up to 21.9 million shares under the Company’s share repurchase program. 34 Financial and Operational Highlights During 2025, 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, or $2.27 per diluted share, in 2024.
Subsequent Event—Unsecured 2025 Committed Bank Credit Facilities On January 15, 2025, the Company terminated commitments under the 2022 Agreements and in replacement thereof, entered into two unsecured syndicated credit agreements for general corporate purposes on terms substantially the same as those of the 2022 Agreements: • One agreement is denominated in US dollars (the 2025 USD Agreement) and provides for an unsecured five-year revolving credit facility for loans and letters of credit, with aggregate commitments of US$2.0 billion (including a letter of credit subfacility of up to US$750 million, of which US$250 million currently is committed).
Of the $3.6 billion aggregate principal amount of Unregistered Notes covered by the registered exchange offers, 99 percent was exchanged for registered notes and debentures, and the remaining Unregistered Notes remained outstanding. 48 Unsecured 2025 Committed Bank Credit Facilities On January 15, 2025, the Company entered into two unsecured syndicated credit agreements for general corporate purposes: • One agreement is denominated in US dollars (the 2025 USD Agreement) and provides for an unsecured five-year revolving credit facility for loans and letters of credit, with aggregate commitments of US$2.0 billion (including a letter of credit subfacility of up to US$750 million, of which US$250 million currently is committed).
In the aggregate, these insurance policies provide up to $750 million of coverage, subject to policy terms and conditions and a retention of approximately $500 million. Future insurance coverage for the Company’s industry could increase in cost and may include higher deductibles or retentions. In addition, some forms of insurance may become unavailable or unavailable on terms economically acceptable.
Future insurance coverage for the Company’s industry could increase in cost and may include higher deductibles or retentions or a change in policy limit or additional exclusions or limitations. In addition, some forms of insurance may become unavailable or unavailable on terms economically acceptable.
During 2023, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $74 million for an aggregate purchase price of $65 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $10 million. The Company recognized a $9 million gain on these repurchases.
During 2025, the Company purchased in the open market and had canceled indebtedness issued under indentures of APA and Apache in an aggregate principal amount of $122 million for an aggregate purchase price of $112 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $13 million.
For more information regarding the Company’s equity method interests, refer to Note 6—Equity Method Interests in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For additional information regarding these obligations, refer to Note 8—Debt and Financing Costs and Note 10—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
The maturities of the CP Notes may vary but may not exceed 397 days from the date of issuance. Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed revolving credit facilities for general corporate purposes, which as of December 31, 2024, included the $1.8 billion 2022 USD Agreement.
Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed revolving credit facilities for general corporate purposes, which as of December 31, 2025, included the $2.0 billion 2025 USD Agreement.
During 2023, the Company repurchased 8.7 million shares at an average price of $37.81 per share totaling $329 million. 47 Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2024 2023 (In millions) Cash and cash equivalents $ 625 $ 87 Total debt – APA and Apache 6,044 5,188 Total equity 6,362 3,691 Available committed borrowing capacity under syndicated credit facilities 2,966 2,894 Cash and Cash Equivalents As of December 31, 2024, the Company had $625 million in cash and cash equivalents.
Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2025 2024 (In millions) Cash and cash equivalents $ 516 $ 625 Total debt – APA and Apache 4,493 6,044 Total equity 7,003 6,362 Available committed borrowing capacity under syndicated credit facilities 4,020 2,966 Cash and Cash Equivalents As of December 31, 2025, the Company had $516 million in cash and cash equivalents.
As a result, the Company recorded a deferred tax expense of $174 million and $208 million related to the remeasurement of the U.K. deferred tax liability in 2023 and 2022, respectively . On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA).
GAAP, the financial statement impact of new legislation is recorded in the period of enactment. As a result, the Company recorded tax expense of $78 million and $174 million related to the change in tax law in 2025 and 2023, respectively . On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA).
The Company recognized a $6 million gain on these repurchases. The repurchases were partially financed by APA’s borrowing under the Company’s commercial paper program. Contractual Obligations Purchase Obligations From time to time, the Company enters into agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms.
The repayment was partially financed with borrowings under APA’s 2025 USD Agreement and commercial paper program. 50 Contractual Obligations Purchase Obligations From time to time, the Company enters into agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms.
The Company’s worldwide NGL production increased 11 Mb/d compared to 2023, primarily a result of increased drilling activity in the Permian Basin coupled with the Callon acquisition, partially offset by natural production decline in the U.S., curtailment of volumes at Alpine High in response to extreme Waha basis differentials, and the sale of non-core assets in the U.S.
The Company’s worldwide NGL production increased 2 Mb/d compared to 2024, primarily a result of increased drilling activity in the Permian Basin, offset by natural production decline, the sale of non-core assets in the U.S., and curtailment of volumes at Alpine High in response to extreme Waha basis differentials Purchased Oil and Gas Sales Purchased oil and gas sales represent volumes primarily attributable to domestic gas purchases that were sold by the Company to fulfill natural gas takeaway obligations and delivery commitments.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeForeign currency net gain or loss of $5 million would result from a 10 percent weakening or strengthening, respectively, in the British pound as of December 31, 2024.
Biggest changeForeign currency net gain or loss would not be material from a 10 percent weakening or strengthening, respectively, in the British pound as of December 31, 2025. The Company is subject to increased foreign currency risk associated with the effects of decommissioning obligations in the North Sea.
Changes in the interest rate applicable to short-term investments, term loan facility, commercial paper program, and credit facility borrowings are expected to have an immaterial impact on earnings and cash flows but could impact interest costs associated with future debt issuances or any future borrowings. 59 Foreign Currency Exchange Rate Risk The Company’s cash activities relating to certain international operations is based on the U.S. dollar equivalent of cash flows measured in foreign currencies.
Changes in the interest rate applicable to short-term investments, term loan facility, and commercial paper program are expected to have an immaterial impact on earnings and cash flows but could impact interest costs associated with future debt issuances or any future borrowings. 56 Foreign Currency Exchange Rate Risk The Company’s cash activities relating to certain international operations is based on the U.S. dollar equivalent of cash flows measured in foreign currencies.
Interest Rate Risk As of December 31, 2024, the Company had $4.8 billion, net, in outstanding notes and debentures, all of which was fixed-rate debt, with a weighted average interest rate of 5.34 percent.
Interest Rate Risk As of December 31, 2025, the Company had $4.5 billion, net, in outstanding notes and debentures, all of which was fixed-rate debt, with a weighted average interest rate of 5.66 percent.
The Company continually monitors its market risk exposure, as oil and gas supply and demand are impacted by uncertainties in the commodity and financial markets associated with the conflict in Ukraine, the conflict in Israel and Gaza, actions taken by foreign oil and gas producing nations, including OPEC+, global inflation, and other current events.
The Company continually monitors its market risk exposure, as oil and gas supply and demand are impacted by uncertainties in the commodity and financial markets, actions taken by foreign oil and gas producing nations, including OPEC+, global inflation, and other current events.
Based on average daily production for 2024, a $1.00 per barrel change in the weighted average realized oil price would have increased or decreased revenues for the year by approximately $89 million, a $0.10 per Mcf change in the weighted average realized natural gas price would have increased or decreased revenues for the year by approximately $30 million, and a $1.00 per barrel change in the weighted average realized NGL price would have increased or decreased revenues for the year by approximately $27 million.
Based on average daily production for 2025, a $1.00 per barrel change in the weighted average realized oil price would have increased or decreased revenues for the year by approximately $87 million, a $0.10 per Mcf change in the weighted average realized natural gas price would have increased or decreased revenues for the year by approximately $33 million, and a $1.00 per barrel change in the weighted average realized NGL price would have increased or decreased revenues for the year by approximately $28 million.
As of December 31, 2024, the Company had approximately $625 million in cash and cash equivalents, approximately 98 percent of which was invested in money market funds and short-term investments with major financial institutions. As of December 31, 2024, there were $1.2 billion of borrowings outstanding under the Company’s term loan facility, commercial paper program, and syndicated revolving credit facilities.
As of December 31, 2025, the Company had approximately $516 million in cash and cash equivalents, approximately 95 percent of which was invested in money market funds and short-term investments with major financial institutions. As of December 31, 2025, there were no borrowings outstanding under the Company’s term loan facility, commercial paper program, and syndicated revolving credit facilities.
The Company’s average crude oil price realizations decreased 3 percent to $78.08 per barrel in 2024 from $80.72 per barrel in 2023. The Company’s average natural gas price realizations decreased 32 percent to $1.97 per Mcf in 2024 from $2.91 per Mcf in 2023.
The Company’s average crude oil price realizations decreased 14 percent to $66.92 per barrel in 2025 from $78.08 per barrel in 2024. The Company’s average natural gas price realizations increased 20 percent to $2.36 per Mcf in 2025 from $1.97 per Mcf in 2024.
The Company’s average NGL price realizations increased 8 percent to $23.37 per barrel in 2024 from $21.54 per barrel in 2023.
The Company’s average NGL price realizations decreased 3 percent to $22.71 per barrel in 2025 from $23.37 per barrel in 2024.
The Company does not hold or issue derivative instruments for trading purposes. As of December 31, 2024, the Company had no open commodity derivative positions.
The Company does not hold or issue derivative instruments for trading purposes. As of December 31, 2025, the Company had open natural gas derivatives not designated as cash flow hedges in a net liability position with a fair value of $77 million.
Added
A 10 percent increase in natural gas prices would decrease the liability by approximately $5 million, while a 10 percent decrease in prices would increase the liability by approximately $6 million.
Added
The Company has periodically entered into foreign exchange contracts in order to minimize the impact of fluctuating exchange rates for the British pound on the Company’s operations.
Added
Subsequent to December 31, 2025, the Company entered into outstanding foreign exchange contracts with a total notional amount of £120 million to reduce its exposure to fluctuating foreign exchange rates for the British pound.

Other APA 10-K year-over-year comparisons