APA Corporation (APA) official guidance

This year's guidance is still at the $70 million, and that's just $20 million for ice roads in Alaska and another $50 million for exploration in Suriname.

On the exploration front, we are investing approximately $70 million to advance high-impact opportunities across our portfolio.

Planned total upstream capital of $2.1 billion, a 10% reduction compared to 2025; includes $230 million for GranMorgu development and $70 million for exploration in Suriname Block 58 and Alaska; and

•Delivered U.S. oil production of 124,000 barrels per day, driven by continued Permian efficiency gains and improved uptime; raised full-year U.S. oil production outlook to 122,000 barrels per day, Permian capital spending unchanged at $1.3 billion;

Starting with the Permian, 2026 development capital is expected to be around $1.2 billion.

Permian development capital is expected to be $1.2 billion, plus an additional investment of $100 million toward projects designed to sustainably reduce LOE over time.

In the Permian, at our current pace of five rigs, we expect to deliver consistent year-over-year oil production of approximately 120,000 barrels per day with capital investment of around $1.3 billion.

Currently, as outlined on slide nine of our supplement, we expect to generate approximately $2.2 billion of free cash flow for the full year.

Lease operating expenses guidance has been lowered by $25 million to $1.5 billion, reflecting ongoing cost savings.

APA’s upstream capital investment and LOE guidance both remain unchanged at approximately $2.1 billion and $1.5 billion, respectively.

While we expect operating expense savings to continue through the year, they are being offset by various market-related headwinds, primarily in the Permian and North Sea. We will work throughout the year to mitigate these pressures, but at this point, we expect 2026 LOE to be slightly above 2025.

The company also reaffirms its prior guidance range of 540 – 550 MMCF per day for Egypt gross gas production.

After just one year of focused, successful gas drilling, we now have visibility into a runway of new development inventory and near-field exploration opportunities. This has laid the foundation to support continued growth, and we expect to deliver approximately 540 to 550 million cubic feet per day this year.

In the Permian, at our current pace of five rigs, we expect to deliver consistent year-over-year oil production of approximately 120,000 barrels per day with capital investment of around $1.3 billion.

APA now expects to exit 2026 with approximately $500 million of run-rate savings, an increase from the company's prior $450 million target.

We remain on track to achieve our $450 million target for cumulative run rate savings by the end of 2026, which is reflected in our current guidance.

•Continued progress on cost reduction initiatives, maintaining trajectory toward $450 million cumulative run-rate savings by year-end 2026; and

Through these efforts, we aim to deliver an additional $50 million-$100 million in combined run-rate savings across G&A, capital, and LOE by the end of next year.

APA expects to recognize an additional $50 million to $100 million of run-rate savings by the end of 2026, spanning across development capital, LOE, and G&A.

Consistent with prior years, the company expects to return at least 60% of free cash flow to shareholders in 2026 while also strengthening the balance sheet.

Looking at our oil and gas trading portfolio, based on current strip pricing, we expect these activities to generate approximately $1.1 billion of pre-tax cash flow in 2026.

APA’s upstream capital investment and LOE guidance both remain unchanged at approximately $2.1 billion and $1.5 billion, respectively.

Planned total upstream capital of $2.1 billion, a 10% reduction compared to 2025; includes $230 million for GranMorgu development and $70 million for exploration in Suriname Block 58 and Alaska; and

In the United States, our $1.3 billion capital program is designed to maintain relatively flat oil production year-over-year at approximately 120,000-122,000 barrels per day despite significant weather-related downtime in the first quarter.

For the full-year 2026, the company is raising its U.S. oil production outlook to 122,000 barrels per day, reflecting strong uptime and continued efficiency gains in the Permian Basin.

In the United States, our $1.3 billion capital program is designed to maintain relatively flat oil production year-over-year at approximately 120,000-122,000 barrels per day despite significant weather-related downtime in the first quarter.

U.S. oil production is expected to average 120,000 to 122,000 barrels per day, a slight improvement from the preliminary outlook provided in November.