APA Corp (APA)

APA Corporation is an independent energy holding company engaged through subsidiaries in the exploration, development, and production of crude oil, natural gas, and NGLs, with core operations in the U.S. (primarily the Permian Basin's Midland and Delaware sub-basins in West Texas, plus legacy Gulf of America assets), Egypt's Western Desert, and the U.K. North Sea, alongside active development in Suriname and exploration interests in Uruguay, Alaska, and other frontier areas. In 2025, the company produced 169.5 MMboe (62% U.S., 31% Egypt, 7% North Sea) generating $7.2 billion in revenue, with year-end estimated proved reserves of 1,056 MMboe (74% U.S., 17% Egypt, 7% North Sea, 7% Suriname). APA has significantly reshaped its portfolio in recent years, notably through the April 2024 all-stock acquisition of Callon Petroleum (~$4.5 billion including debt), which added roughly 145,000 net acres in the Permian Basin, alongside divestitures of non-core Permian, Eagle Ford, and Austin Chalk assets generating about $1.6 billion in 2024 and a further $571 million in 2025 from a full exit of New Mexico, with proceeds directed toward debt reduction.

In Egypt, operations are conducted under production-sharing contracts with EGPC via a merged concession agreement (98% of acreage) held through a two-thirds/one-third joint venture with Sinopec, and the company was awarded two million additional net exploration acres in 2025. North Sea operations, centered on the Forties and other legacy fields, are being wound down due to unfavorable regulatory and tax conditions, with production expected to cease before 2030. The company's most significant growth project is the Suriname Block 58 joint venture with TotalEnergies (APA holding 50% working interest in exploration, operator TotalEnergies), which reached a positive final investment decision in October 2024 for the GranMorgu development (Krabdagu and Sapakara fields), an estimated $10.5 billion investment targeting first oil in 2028 via an FPSO with 220,000 b/d capacity; Staatsolie holds a 20% participation right.

Additional new-venture exposure includes Alaska's North Slope, where a 2025 exploratory well confirmed a discovery with a successful flow test, and offshore Uruguay blocks. APA's strategic priorities include maintaining financial discipline, returning capital to shareholders through debt reduction and share repurchases, and growing a diversified, high-quality asset portfolio through disciplined capital allocation amid volatile commodity price conditions driven by geopolitical and macroeconomic factors.