APA Corp (APA)

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AI: Undervalued

Price checkThe shares look undervalued, even after the strong post-earnings rise.

At the August 14 close of $40.47, roughly 353 million year-end shares imply a $14.3 billion equity value. Adding June net debt gives about $17.6 billion of enterprise value, meaning the whole operating business plus debt. The last four quarters produced $1.68 billion of net income and $6.01 billion of earnings before interest, tax, depreciation and amortization, a rough operating-cash measure. That is about 8.5 times earnings and 2.9 times the latter measure. Those low readings support Undervalued, provided recent oil-driven profits do not collapse.

Big pictureStrong recent cash generation is real, but oil prices still control the outcome.

APA's earnings swing with energy prices: net income moved from a $4.9 billion loss in 2020 to a $4.1 billion profit in 2022, then fell to $804 million in 2024 before recovering to $1.43 billion in 2025. Yet operating cash remained positive every year, reaching $4.55 billion in 2025. The company reported $1.0 billion of 2025 free cash flow, meaning cash left after operating and required investment. First-half 2026 operating cash was $2.26 billion, but unusually strong realized oil prices make that pace unsafe to treat as permanent.

Business strengthDebt reduction and disciplined payouts now give the business a sturdier base.

June 2026 net debt was $3.30 billion, down from $5.42 billion at 2024 year-end and only about 0.55 times trailing operating earnings before interest, tax and non-cash wear costs. That lowers interest and refinancing risk, although $2.28 billion of current assets still trailed $2.41 billion of current liabilities. Capital allocation improved: 2025 dividends were $360 million, and shares fell 3.4% to 353.0 million. However, the 2024 Callon share issuance had lifted shares 20% from 2023, so dilution history matters. Second-quarter 2026 buybacks covered 2.8 million shares at $35.25.

What could change the storySuriname and Alaska offer upside, while weaker oil could erase the discount.

Value could rise if GranMorgu stays on schedule for mid-2028 first oil from a 220,000-barrel-per-day gross project, while Alaska's winter drilling proves resources that can use acquired infrastructure. The bear case is a commodity reversal: 2020 shows weak prices and write-downs can erase profits, while 2026 production was already expected to decline after asset sales and North Sea weakness. Using eight to ten times sustainable earnings, today's price requires roughly $4-$5 per share annually, continued debt control and no major project overrun. U.S. oil output and GranMorgu milestones are the clearest checks.

$40.47 price considered

AI: News

Second-quarter earnings jumpSecond-quarter profit and cash jumped, strengthening debt reduction and near-term shareholder returns.

On August 5, 2026, APA reported second-quarter net income of $747 million, diluted earnings of $2.11 per share, $1.71 billion of operating cash flow and quarter-end debt of $3.74 billion. The next close rose 5.4%, and the share price was 18.4% above its pre-release August 5 close by August 10. That timing is consistent with stronger expectations, but it does not prove earnings alone caused the move because oil prices also shifted. Higher cash generation directly improves debt capacity and shareholder-return potential.

Alaska infrastructure purchaseA small Alaska purchase secured infrastructure that could make future discoveries cheaper to develop.

On June 10, 2026, APA agreed to buy Savant Alaska for about $70 million upfront plus development-linked payments. The package adds about 104,000 gross acres, 1,500 barrels a day of existing output, a 40,000-barrel-a-day facility and an 80,000-barrel-a-day pipeline. APA plans one exploration and one appraisal well in winter 2026-2027. Owning nearby infrastructure could shorten development and lower future costs if drilling succeeds; if it fails, the immediate production is small. Shares rose 3.8% that day, though attribution is uncertain.

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	2025	2024	2023	2022	2021	2020	2019
Revenue	$9.22B	$9.74B	$8.19B	$12.13B	$7.93B	$4.31B	$6.55B
Operating expenses	$5.86B	$7.29B	$4.63B	$5.51B	$5.13B	$8.54B	$8.64B
Operating income	$3.09B	$2.44B	$3.70B	$5.57B	$2.86B	−$4.10B	−$2.15B
EBITDAderived	$5.39B	$4.71B	$5.24B	$6.80B	$4.22B	−$2.33B	$528.0M
Net income	$1.43B	$804.0M	$2.85B	$4.08B	$1.31B	−$4.90B	−$3.68B
Basic EPSper diluted share	$3.99	$2.28	$9.26	$11.05	$2.60	-$12.86	-$9.43
Diluted EPSper diluted share	$3.99	$2.27	$9.25	$11.02	$2.59	-$12.86	-$9.43

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$1.47M disclosed value

Sells (SEC code S)2$1.23M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 20, 2026Form 4	Maddox Mark DExecutive VP - Administration	SellCommon Stock	9.8K	$40.04	$392.4K	66.8K
Mar 18, 2026Form 4	Bob Matthew RegisDirector	SellCommon Stock, par value $0.625 per share	23.0K	$36.23	$833.3K	6.6K
Apr 3, 2025Form 4	Joung ChansooDirector	BuyCommon Stock	75.0K	$18.25	$1.37M	140.3K
Dec 12, 2024Form 4	Ellis Juliet SDirector	BuyCommon Stock	4.4K	$22.78	$100.0K	12.4K

Review ownership filings at SEC.gov ↗

APA Corp (APA)

Financial charts

Financial statements

Insider buys & sells