- The Top 5 Analyst Questions From APA Corporation’s Q1 Earnings Call
May 16, 2026
APA Corporation’s first quarter results were met with a negative market reaction, despite revenue and non-GAAP earnings per share both coming in above Wall Street expectations. Management attributed the quarter’s performance to capital efficiency in the Permian Basin and stable production in Egypt, achieved through targeted waterflood investments and improved operational uptime. CEO John J. Christmann noted, “Operational efficiencies and improved uptime drove oil production above guidance, while gas volumes were curtailed due to weak Waha pricing.” The company also highlighted successful cost management and a robust contribution from its gas trading business, which helped offset inflationary pressures, especially in power and diesel costs.
Is now the time to buy APA? Find out in our full research report (it’s free).
APA Corporation (APA) Q1 CY2026 Highlights:
Revenue: $2.14 billion vs analyst estimates of $2.08 billion (flat year on year, 3% beat) Adjusted EPS: $1.38 vs analyst estimates of $1.14 (20.9% beat) Adjusted EBITDA: $1.56 billion vs analyst estimates of $1.42 billion (73% margin, 10.4% beat) Operating Margin: 41.9%, up from 34.8% in the same quarter last year Oil production per day: in line with the same quarter last year Market Capitalization: $13.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From APA Corporation’s Q1 Earnings Call
Doug Leggate (Wolfe Research) asked about the sustainability of gas trading profits given upcoming pipeline expansions. CFO Ben C. Rodgers explained that while pipeline expansions could narrow basis differentials, APA is exploring hedges and expects another strong year in 2027 based on current price strips. John Freeman (Raymond James) questioned how APA will allocate excess free cash flow with near-term debt maturities addressed. CEO John J. Christmann and Rodgers replied that the mix between debt reduction, dividends, and buybacks will be evaluated throughout the year, given ongoing market volatility. Chris Baker (Evercore ISI) sought details on cost-saving drivers and the impact of reaching the $3 billion net debt target. Rodgers highlighted contract-driven cost controls, especially in the Permian, and noted that achieving the debt target would allow for more flexible capital returns and increased exploration spending. Neal Dingmann (William Blair) inquired about Suriname exploration and Egypt workover activity. CEO Christmann emphasized the excitement around new prospects in Suriname and stable workover activity in Egypt supporting flat production profiles. Kevin McGrude (Pickering Energy Partners) asked for outlook on international oil realizations. Rodgers responded that current spot premiums for Brent and WTI support higher realizations, but these are expected to compress as the year progresses.
Story Continues
Catalysts in Upcoming Quarters
In the coming quarters, our team will watch (1) whether APA can sustain cost reductions and capital discipline in the Permian as new well completions ramp up, (2) the impact of Brent price movements on Egypt’s adjusted production volumes and cash flow, and (3) the evolution of gas trading margins as new pipelines enter service. Progress toward the $3 billion net debt target and exploration results in Suriname and Alaska will also be important markers.
APA Corporation currently trades at $37.03, down from $38.30 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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- APA Corporation, Cactus, Oceaneering, and Borr Drilling Shares Skyrocket, What You Need To Know
May 14, 2026
What Happened?
A number of stocks jumped in the morning session after oil prices climbed amid geopolitical uncertainty following the U.S. rejection of a peace proposal from Iran.
West Texas Intermediate crude rose over 2.5% to around $97.89 per barrel, while Brent crude, the international benchmark, also gained more than 2.6% to approximately $104 per barrel. The price increase followed President Trump's dismissal of Iran's latest peace proposal as "TOTALLY UNACCEPTABLE!" This development heightened market concerns about the ongoing conflict. For energy producers, higher oil prices can directly translate to increased revenue and profitability, which typically drives positive investor sentiment.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
Mixed or Offshore Upstream E&P company APA Corporation (NASDAQ:APA) jumped 3.2%. Is now the time to buy APA Corporation? Access our full analysis report here, it’s free. U.S. Shale E&P company Cactus (NYSE:WHD) jumped 3.5%. Is now the time to buy Cactus? Access our full analysis report here, it’s free. Oilfield Services company Oceaneering (NYSE:OII) jumped 2.5%. Is now the time to buy Oceaneering? Access our full analysis report here, it’s free. Oilfield Services company Borr Drilling (NYSE:BORR) jumped 3.4%. Is now the time to buy Borr Drilling? Access our full analysis report here, it’s free.
Zooming In On Cactus (WHD)
Cactus’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 5.1% as a sharp retreat in crude oil and natural gas prices amid shifting geopolitical expectations weakened sentiment.
WTI crude futures plunged over 10% to around $84 per barrel, a steep reversal from the nearly $120 seen in the previous session. The sell-off was triggered by multiple factors, including comments from President Trump suggesting the war with Iran could be brief. Additionally, global leaders are signaling a readiness to intervene to stabilize energy markets. The International Energy Agency (IEA), an organization that works to ensure reliable, affordable, and clean energy, has convened a meeting to assess the situation, with G7 nations requesting preparations for a potential release of emergency oil reserves. Meanwhile, natural gas prices also declined, with the U.S. Energy Information Administration lowering its price forecast due to strong domestic production and mild weather, which are expected to insulate the U.S. market from the conflict's impact.
Story Continues
Cactus is up 19.7% since the beginning of the year, and at $56.32 per share, it is trading close to its 52-week high of $58.76 from February 2026. Investors who bought $1,000 worth of Cactus’s shares 5 years ago would now be looking at an investment worth $1,650.
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- APA Corporation Q1 Earnings Beat Estimates on Higher Oil Prices
May 13, 2026
U.S. energy operator APA Corporation APA reported first-quarter 2026 adjusted earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.01. The bottom line rose from the year-ago adjusted profit of $1.06. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses.
Revenues of $2.2 billion were down 15.2% from the year-ago quarter’s sales but beat the Zacks Consensus Estimate by 4.8%.
APA Corporation Price, Consensus and EPS SurpriseAPA Corporation Price, Consensus and EPS Surprise
APA Corporation price-consensus-eps-surprise-chart | APA Corporation Quote
Meanwhile, APA continues to reward its shareholders, having paid out $88 million in dividends during the first quarter of 2026.
APA’s Q1 Production & Selling Prices
Production of oil and natural gas averaged 442,352 BOE/d, which comprised 69% liquids. The figure was down 6% from the year-ago quarter but surpassed our expectation of 439,997 BOE/d.
U.S. output (accounting for 60% of the total) fell 11% year over year to 264,720 BOE/d, but production from the company’s international operations increased 4.1% to 177,632 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 304,947 barrels per day (Bbl/d). Natural gas output totaled 824,426 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the first quarter was $78.69 per barrel, up 6.7% from the year-ago realization of $73.73. The number also significantly surpassed our projection of $56.74. The average realized natural gas price fell to $2.12 per thousand cubic feet (Mcf) from $2.81 in the year-ago period and missed our estimate of $3.62.
Costs & Financial Position
APA’s first-quarter lease operating expenses totaled $362 million, down 11% from $407 million in the year-ago period. Moreover, an 84.2% drop in purchased oil/gas costs meant that total operating expenses decreased nearly 25% from the corresponding period of 2025 to $1.4 billion. The number was below our model projection of $1.5 billion.
During the quarter under review, APA generated $554 million of cash from operating activities while it incurred $564 million in upstream capital expenditures. The Zacks Rank #1 (Strong Buy) company reported an adjusted operating cash flow of $1.2 billion. It also registered a free cash flow of $477 million compared to $126 million a year ago.
You can see the complete list of today’s Zacks #1 Rank stocks here.
As of March 31, APA had approximately $293 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 40%.
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Q2 & 2026 Guidance by APA
For the second quarter, APA Corporation expects U.S. oil production to average 121,000 barrels per day. In Egypt, gross gas production is forecast to rise to 540 MMCF per day, driven by continued momentum in the company’s gas-focused drilling activity. Upstream capital spending for the quarter is anticipated to total around $575 million.
For full-year 2026, APA has increased its U.S. oil production guidance to 122,000 barrels per day, supported by strong operational uptime and ongoing efficiency improvements in the Permian Basin. It also maintained its Egypt gross gas production outlook of 540-550 MMCF per day. In addition, the company left its upstream capital investment and lease operating expense guidance unchanged at approximately $2.1 billion and $1.5 billion, respectively.
Some Key E&P Earnings
While we have discussed APA’s first-quarter results in detail, let’s see how some other upstream companies have fared this earnings season.
Shale-focused operator EOG Resources EOG posted adjusted earnings of $3.41 per share in the first quarter of 2026, up 18.8% from the year-ago level of $2.87. The bottom line beat the Zacks Consensus Estimate for earnings of $3.07 by 11.1%.
Total revenues of $6.92 billion increased 22.1% year over year and beat the consensus mark of $6.3 billion.
Strong quarterly results were supported by higher production, with total crude-oil-equivalent volumes averaging 1,383.8 MBoe/d in the quarter, reflecting strong production execution.
EOG Resources’ cash profile remained a core pillar of the quarter. Net cash provided by operating activities was $2.97 billion, while capital expenditure was $1.64 billion. That spread drove free cash flow of $1.49 billion, underscoring the company’s ability to self-fund its program and still return meaningful capital.
ConocoPhillips COP, one of the world’s largest independent oil and gas producers, delivered adjusted earnings per share of $1.89 in the first quarter of 2026, down 9.6% from the year-ago level but beating the Zacks Consensus Estimate of $1.73 by 9.25%. Total revenues of $16.05 billion declined 6.1% year over year, but topped the consensus mark of $14.81 billion by 8.37%.
Operationally, the upstream major generated total production of 2,309 thousand barrels of oil-equivalent per day.
Better-than-expected quarterly earnings can be attributed to the company’s low costs and improved operational efficiency, which helped offset weaker prices and volume dynamics.
ConocoPhillips generated cash provided by operating activities of $4.3 billion in the quarter. Excluding the effect of operating working-capital timing, cash from operations totaled $5.4 billion, supporting a capital program that included $2.9 billion in capital expenditure and investments.
Natural gas producer EQT Corporation EQT reported first-quarter 2026 adjusted earnings from continuing operations of $2.33 per share, which beat the Zacks Consensus Estimate of $2.23. The bottom line increased from the year-ago quarter’s figure of $1.18.
Adjusted operating revenues increased to $3,136 million from $2,153 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $3,127 million.
Strong quarterly results were driven by the increase in total sales volumes and higher realized natural gas equivalent prices.
As of March 31, 2026, EQT had cash and cash equivalents of $326.6 million and net debt of $5.67 billion.
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- APA Rises On Oil Shock As Market Weighs Valuation Gap
May 13, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
APA Corporation (NasdaqGS:APA) shares rose after oil prices moved higher. The oil price move followed renewed geopolitical tensions after the U.S. rejected Iran's peace proposal. Investors reacted to the potential impact of higher oil prices on APA's earnings and operations.
APA focuses on exploration and production of oil and gas, so its share price often reacts quickly when crude markets shift. Geopolitical tensions that affect supply expectations can feed directly into the pricing environment for producers like APA. For investors, this links external political events with potential changes in revenue, costs, and capital plans.
The latest move in APA's stock highlights how quickly sentiment can adjust when risk perceptions in energy markets change. If geopolitical tensions stay elevated or fluctuate, oil price volatility could remain an important driver for how the market values APA's cash flows and balance sheet flexibility. Readers weighing exposure to APA may want to watch both company updates and future headlines around the U.S. and Iran.
Stay updated on the most important news stories for APA by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on APA.NasdaqGS:APA 1-Year Stock Price Chart
See which insiders are buying and buying and selling APA following this latest news.
Quick Assessment
✅ Price vs Analyst Target: APA trades at US$37.09, around 11.7% below the US$42.00 analyst target, so the stock is priced under consensus expectations. ✅ Simply Wall St Valuation: Shares are described as trading 65.9% below the estimated fair value, which points to a large valuation gap. ❌ Recent Momentum: The stock is down 4.0% over the last 30 days, even with the recent bounce on higher oil prices.
There is only one way to know the right time to buy, sell or hold APA. Head to Simply Wall St's company report for the latest analysis of APA's Fair Value..
Key Considerations
📊 The share price move is tightly linked to oil price swings, so this news mainly reinforces APA's sensitivity to geopolitical shocks. 📊 Keep an eye on the gap between the US$37.09 price, the US$42.00 target, and the stated 65.9% discount to estimated fair value, as well as future commentary on production and capital spending. ⚠️ Analysts expect earnings to decline by an average of 0.3% per year over the next 3 years, which could matter if oil price strength fades.
Dig Deeper
For the full picture including more risks and rewards, check out the complete APA analysis. Alternatively, you can check out the community page for APA to see how other investors believe this latest news will impact the company's narrative.
Story Continues
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include APA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Best Momentum Stocks to Buy for May 12th
May 12, 2026
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 12:
Albemarle Corporation ALB: This engineered specialty chemicals company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days.
Albemarle Corporation Price and ConsensusAlbemarle Corporation Price and Consensus
Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote
Albemarle’s shares gained 26.2% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score of A.
Albemarle Corporation PriceAlbemarle Corporation Price
Albemarle Corporation price | Albemarle Corporation Quote
APA Corporation APA: This independent energy company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 195.6% over the last 60 days.
APA Corporation Price and ConsensusAPA Corporation Price and Consensus
APA Corporation price-consensus-chart | APA Corporation Quote
APA’s shares gained 31.4% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score of A.
APA Corporation PriceAPA Corporation Price
APA Corporation price | APA Corporation Quote
Diodes Incorporated DIOD: This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.9% over the last 60 days.
Diodes Incorporated Price and ConsensusDiodes Incorporated Price and Consensus
Diodes Incorporated price-consensus-chart | Diodes Incorporated Quote
Diodes’ shares gained 57.5% over the last three months compared with the S&P 500’s advance of 8.4%. The company possesses a Momentum Score of A.
Diodes Incorporated PriceDiodes Incorporated Price
Diodes Incorporated price | Diodes Incorporated Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
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This article originally published on Zacks Investment Research (zacks.com).
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- BofA Lifts APA PT to $30 amid Updated U.S. Energy Sector Outlook
May 6, 2026
With YTD returns of 53.5% as of May 5, APA Corporation (NASDAQ:APA) is included among the 10 Best Performing Dividend Stocks So Far in 2026.BofA Lifts APA PT to $30 amid Updated U.S. Energy Sector Outlook
On April 27, BofA raised its price recommendation on APA Corporation (NASDAQ:APA) to $30 from $27. It reiterated an Underperform rating on the stock. The analyst said the firm is updating its price targets for U.S. oil and gas companies under its coverage. BofA believes the market is positioned for de-escalation, though it still sees a forward outlook shaped by flare-ups and elevated geopolitical risks.
On April 22, Scotiabank raised its price goal on APA to $36 from $26. It kept a Sector Perform rating on the shares. The analyst said the firm is updating its price targets for U.S. integrated oil, refining, and large-cap E&P companies under its coverage. Scotiabank said its view on the sector remains mixed. The firm is generally above consensus earnings estimates for the E&P peer group but below consensus for independent refiners. Looking beyond the current quarter, the firm expects investors to focus on whether the recent turmoil in oil markets could lead to changes in industry activity in 2026 and beyond.
APA Corporation (NASDAQ:APA) is an independent energy company. The company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom. It also explores for oil and natural gas offshore Suriname.
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- APA Corporation (NASDAQ:APA) Reports Bullish Q1 CY2026
May 6, 2026
Oil and gas producer APA Corporation (NASDAQ:APA) announced better-than-expected revenue in Q1 CY2026, with sales up 8.8% year on year to $2.33 billion. Its non-GAAP profit of $1.38 per share was 20.9% above analysts’ consensus estimates.
Is now the time to buy APA Corporation? Find out in our full research report.
APA Corporation (APA) Q1 CY2026 Highlights:
Revenue: $2.33 billion vs analyst estimates of $2.08 billion (8.8% year-on-year growth, 12% beat) Adjusted EPS: $1.38 vs analyst estimates of $1.14 (20.9% beat) Adjusted Operating Income: $914 million vs analyst estimates of $838.4 million (39.3% margin, 9% beat) Operating Margin: 35.7%, up from 34.6% in the same quarter last year Free Cash Flow Margin: 20.5%, up from 5.9% in the same quarter last year Oil production per day: in line with the same quarter last year Market Capitalization: $14.66 billion
Company Overview
Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ:APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.
Revenue Growth
A company’s long-term performance can give signals about its business quality. Even a bad business, especially in a cyclical industry, can shine for a year or so, but a top-tier one should exhibit resilience through cycles. Luckily, APA Corporation’s sales grew at a solid 13.9% compounded annual growth rate over the last five years. Its growth surpassed the average energy upstream and integrated energy company and shows its offerings resonate with customers, a great starting point for our analysis.APA Corporation Quarterly Revenue
Within Energy, a singular timeframe, even if it’s quite long-term, only sheds light on how well a company rode the last commodity cycle. To better assess whether a company compounds through cycles, we validate our view with an even longer, ten-year view. APA Corporation’s annualized revenue growth of 3.2% over the last ten years is below its five-year trend, but we still think the results suggest decent demand.
Revenue provides useful context, but it is heavily influenced by commodity prices and acquisitions. Production volumes, by contrast, reveal whether the underlying asset base is actually growing. Over the last two years, APA Corporation’s oil production per day averaged 30.3% year-on-year growth while its natural gas production per day averaged 3.6% year-on-year growth.APA Corporation Oil Production Per Day
This quarter, APA Corporation reported year-on-year revenue growth of 8.8%, and its $2.33 billion of revenue exceeded Wall Street’s estimates by 12%. This quarter, APA Corporation’s Oil production per day fell by 1% year on year.
Story Continues
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Adjusted EBITDA Margin
Adjusted EBITDA margin captures the true operating profitability of an energy producer by removing accounting noise around depletion and capitalized drilling costs. It reveals how much cash the asset base generates before capital structure and reinvestment requirements shape reported earnings.
APA Corporation has been a well-oiled machine over the last five years. It demonstrated elite profitability for an upstream and integrated energy business, boasting an average EBITDA margin of 60.9%.
Looking at the trend in its profitability, APA Corporation’s EBITDA margin decreased by 10.8 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.APA Corporation Trailing 12-Month EBITDA Margin
in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Cash Is King
As mentioned above, adjusted EBITDA ignores capital structure and drilling expenditure decisions. These are two huge aspects of an Energy producer, so in order to understand a comprehensive picture of business quality, an investor needs to account for these. Said differently, adjusted EBITDA margins could be solid but free cash flow is abysmal because decline rates of the asset are extreme and the drilling is expensive. Free cash flow tells you about not only the economics of the production that has happened but how much it costs to stay in business as well (further drilling or extraction).
APA Corporation has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 17.4% over the last five years, quite impressive for an upstream and integrated energy business.
The level of free cash flow is important, but its durability across cycles is just as critical. Consistent margins are far more valuable than volatile swings driven by commodity prices.
APA Corporation’s ratio of quarterly free cash flow volatility to WTI Crude price volatility over the past five years was 3.8 (lower is better), indicating unusually strong insulation from commodity swings. This stability supports superior capital access in downturns and positions APA Corporation to act as a consolidator when weaker peers are forced to retrench.
You may be asking why we wait until the free cash flow line to perform this stability analysis versus commodity prices. Why not compare revenue or EBITDA to WTI Crude prices in the case of APA Corporation? Because what ultimately matters is not how much revenue or profit you earn when prices are high but how much cash you can generate when prices are low. Free cash flow is the superior metric because it includes everything from hedging prowess to growth and maintenance capex to management behavior during good times and bad.APA Corporation Trailing 12-Month Free Cash Flow Margin
APA Corporation’s free cash flow clocked in at $477 million in Q1, equivalent to a 20.5% margin. This result was good as its margin was 14.6 percentage points higher than in the same quarter last year. Its cash profitability was also above its five-year level, and we hope the company can build on this trend.
Key Takeaways from APA Corporation’s Q1 Results
It was good to see APA Corporation beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock remained flat at $38.23 immediately following the results.
So should you invest in APA Corporation right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
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- APA Corporation Announces First-Quarter 2026 Financial And Operational Results
May 6, 2026
APA Corporation
HOUSTON, May 06, 2026 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today announced first-quarter 2026 results. Results can be found on the company’s website by visiting www.apacorp.com or investor.apacorp.com.
APA will host a conference call on Thursday, May 7, at 10 a.m. Central time via the webcast link available on the company website to discuss the results. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.
Contacts
Investor: (281) 302-2286 | ir@apachecorp.com Media: (713) 296-7276 | media@apachecorp.com Website: www.apacorp.com
APA-F
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- APA Corporation (APA) Leads Gains on Rising Oil Prices and Strong Cash Flow Outlook
May 5, 2026
Ariel Investments, an investment management company, released its “Ariel Focus Fund" Q1 2026 Investor Letter. A copy of the letter can be downloaded here. The fund reported strong first-quarter performance for its Ariel Focus Fund, which gained 7.30%, significantly outperforming both the S&P 500’s -4.33% return and the Russell 1000 Value Index’s 2.10% gain amid a volatile, risk-off market environment. The firm said the quarter was marked by a sharp selloff driven by escalating Middle East tensions that pushed energy prices higher, lifted bond yields, and reignited inflation concerns, leading to a rotation away from mega-cap technology stocks toward energy and defensive sectors. Ariel attributed its outperformance largely to strong contributions from energy holdings, which benefited from rising oil prices, while some financial and technology positions lagged due to rate uncertainty and concerns around AI-driven disruption and capital spending. Looking ahead, the firm maintained a cautious outlook, citing rising recession risks, persistent geopolitical instability, and trade policy uncertainty, while warning that narrow market leadership could lead to abrupt sentiment shifts. Despite these headwinds, Ariel emphasized that elevated volatility is creating attractive opportunities and reaffirmed its long-term, fundamentals-driven strategy focused on high-quality businesses, strong balance sheets, and durable competitive advantages to navigate uncertainty and capture future upside. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Ariel Focus Fund highlighted stocks like APA Corporation (NASDAQ:APA). APA Corporation (NASDAQ:APA) is an independent energy company focused on the exploration and production of crude oil, natural gas, and natural gas liquids across key international regions. The one-month return of APA Corporation (NASDAQ:APA) was -2.19% while its shares traded between $15.20 and $45.66 over the last 52 weeks. On May 4, 2026, APA Corporation (NASDAQ:APA) stock closed at approximately $42.03 per share, with a market capitalization of about $14.85 billion.
Ariel Focus Fund stated the following regarding APA Corporation (NASDAQ:APA) in its Q1 2026 investor letter:
"Oil and gas producer, APA Corporation (NASDAQ:APA) was the top contributor during the quarter, benefiting from higher oil prices and the company’s strong exposure to upstream operations, which tend to perform well when commodity prices improve. Longer term, we believe APA is well positioned to sustain production and generate cash. The company has a large inventory of drilling opportunities in the Permian Basin and a good track record of replacing production. Additionally, growing natural gas exposure in Egypt and APA’s liquefied natural gas–linked marketing portfolio are beneficial. Together, we believe these assets support ongoing free cash flow, which can be returned to shareholders and drive value over time."
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APA Corporation (APA) Leads Gains on Rising Oil Prices and Strong Cash Flow Outlook
APA Corporation (NASDAQ:APA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 41 hedge fund portfolios held APA Corporation (NASDAQ:APA) at the end of the fourth quarter, which was 33 in the previous quarter. While we acknowledge the risk and potential of APA Corporation (NASDAQ:APA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered APA Corporation (NASDAQ:APA) and shared the list of the best dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. This article is originally published at Insider Monkey.
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- APA Corporation Q1 Earnings on Deck: Here's How It Will Fare
May 5, 2026
APA Corporation APA is set to release first-quarter 2026 results on May 6. The bottom-line estimate for the to-be-reported quarter is pegged at 94 cents on revenues of $2.11 billion.
Let us delve into the factors that might have influenced this upstream operator’s results in the quarter to be reported. Before diving in, it is important to consider how APA performed in the last quarter.
Highlights of APA’s Q4 Earnings & Surprise History
In the last reported quarter, the independent oil and gas explorer beat the consensus mark due to higher-than-expected production and lower costs. APA posted adjusted earnings per share of 91 cents, which beat the Zacks Consensus Estimate of 79 cents. Moreover, revenues of $2 billion beat the Zacks Consensus Estimate by 3%. The company’s earnings have exceeded the Zacks Consensus Estimate in each of the last four quarters, resulting in an average surprise of 48.37%
This is depicted in the graph below:
APA Corporation Price and EPS SurpriseAPA Corporation Price and EPS Surprise
APA Corporation price-eps-surprise | APA Corporation Quote
APA’s Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter 2026 earnings has remained unchanged over the past seven days. The estimated figure indicates an 11.32% decline year over year. The Zacks Consensus Estimate for revenues implies a 19.08% year-over-year decline.
Factors to Consider Ahead of APA’s Q1 Release
APA Corporation is an independent energy company focused on the exploration and production of oil and natural gas. Its primary operations involve discovering, developing and extracting crude oil, natural gas and natural gas liquids. With a strong presence in the United States, Egypt and the North Sea, the company is also expanding its exploration activities in Suriname. APA earns revenues from the sale of the hydrocarbon products, with its earnings closely linked to production volumes and fluctuating market prices for oil and gas.
APA operates in regions like Egypt, which carry geopolitical risks. We expect any regional uncertainties or operational complexities to remain a potential overhang on production stability and investor sentiment.
The decrease in APA’s costs might have improved its to-be-reported bottom line. We expect the company’s total expenses to reach $1.5 billion in the first quarter, down from $1.8 billion in the same quarter last year.
According to our model, the following expenses are expected to decrease year over year, Lease Operating Expenses (down 5.5%), Purchased Oil and Gas Costs (down 67.8%), Taxes Other Than Income (down 35.3%), Exploration (down 6.9%), General and Administrative (down 8.1%), Transaction Costs (down 42.1%), Reorganization and Separation Costs (down 12.9%), Oil and Gas Property and Equipment (down 11.8%), Other Assets (down 12.9%), Depreciation, Depletion, and Amortization (down 13.8%), Asset Retirement Obligation Accretion (down 13.8%) and Interest Expense (down 13.8%).
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We expect APA’s production volumes to have remained relatively stable during the first quarter, supported by steady output from key regions like the Permian Basin and Egypt. These mature, low-decline assets are likely to have provided operational consistency, helping offset volatility in other regions.
On a bearish note, the company’s revenues are likely to have declined in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is expected to be lower than the year-ago figure of $2.6 billion, caused by reduced contributions from the Oil, Natural Gas, and Natural Gas Liquid Production revenues, as well as the Purchased Oil and Gas Sales segments. Based on our model, revenues from the Oil, Natural Gas, and Natural Gas Liquid Production revenues and Purchased Oil and Gas Sales segments are projected to decrease 24.1% and 45.2% year over year, respectively.
What Does Our Model Say About APA?
Our proven model predicts an earnings beat for APAthis time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
Earnings ESP of APA: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +14.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
APA’s Zacks Rank: APA currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Shell plc SHEL has an Earnings ESP of +3.56% and a Zacks Rank #2. The firm is scheduled to release earnings on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shell is a global energy and petrochemical company that explores, produces, refines and markets oil, gas and renewable energy solutions. Notably, the Zacks Consensus Estimate for Shell’s 2026 earnings per share indicates 58.25% year-over-year growth. Valued at around $9.97 billion, Shell’s shares have risen 37.1% in a year.
Ovintiv Inc. OVV has an Earnings ESP of +21.28% and a Zacks Rank #2. The firm is scheduled to release earnings on May 11. Ovintiv is a North American energy company engaged in the exploration, production and development of crude oil, natural gas and natural gas liquids.
Notably, the Zacks Consensus Estimate for Ovintiv’s 2026 earnings per share indicates 32.64% year-over-year growth. Valued at around $17.24 billion, OVV’s shares have risen 82.8% in a year.
Venture Global, Inc. VG has an Earnings ESP of +9.36% and a Zacks Rank #2. The firm is scheduled to release earnings on May 12.
Venture Global is a U.S.-based energy company focused on developing and operating large-scale liquefied natural gas export facilities. Notably, the Zacks Consensus Estimate for Venture Global’s 2026 earnings per share indicates 52.33% year-over-year growth. Valued at around $9.97 billion, VG’s shares have risen 60.4% in a year.
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This article originally published on Zacks Investment Research (zacks.com).
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