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Financial and Operational Supplement May 7, 2025 First-Quarter 2025
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APA CORPORAT ION Notice to Investors 2 Certain statements in this earnings supplement contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including, without limitation, expectations, beliefs, plans, and objectives regarding anticipated financial and operating results, asset divestitures, estimated reserves, drilling locations, capital expenditures, price estimates, typical well results and well profiles, type curve, and production and operating expense guidance included in this earnings supplement. Any matters that are not historical facts are forward looking and, accordingly, involve estimates, assumptions, risks, and uncertainties, including, without limitation, risks, uncertainties, and other factors discussed in our most recently filed Annual Report on Form 10-K, recently filed Quarterly Reports on Form 10-Q, recently filed Current Reports on Form 8-K available on our website, www.apacorp.com, and in our other public filings and press releases. These forward-looking statements are based on APA Corporation’s (APA) current expectations, estimates, and projections about the company, its industry, its management’s beliefs, and certain assumptions made by management. No assurance can be given that such expectations, estimates, or projections will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this earnings supplement, including the company’s ability to meet its production targets, successfully manage its capital expenditures and to complete, test, and produce the wells and prospects identified in this earnings supplement, to successfully plan, secure necessary government approvals, finance, build, and operate the necessary infrastructure, and to achieve its production and budget expectations on its projects. Whenever possible, these “forward-looking statements” are identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” ”goals,” “guidance,” “may,” “might,” “outlook,” “possible,” “potential,” “projects,” “prospects,” “should,” “would,” “will,” and similar phrases, but the absence of these words does not mean that a statement is not forward-looking. Because such statements involve risks and uncertainties, the company’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that the company files periodically with the Securities and Exchange Commission. Cautionary Note to Investors: The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. We may use certain terms in this earnings supplement, such as “resource,” “resource potential,” “net resource potential,” “potential resource,” “resource base,” “identified resources,” “potential net recoverable,” “potential reserves,” “unbooked resources,” “economic resources,” “net resources,” “undeveloped resource,” “net risked resources,” “inventory,” “upside,” and other similar terms that the SEC guidelines strictly prohibit us from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, available at www.apacorp.com or by writing at: 2000 W. Sam Houston Pkwy. S., Suite 200, Houston, Texas 77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. Certain information may be provided in this earnings supplement that includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP). These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net income, total debt or net cash provided by operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. For a reconciliation to the most directly comparable GAAP financial measures, please refer to APA’s first quarter 2025 earnings release at www.apacorp.com and “Non-GAAP Reconciliations” of this earnings supplement. None of the information contained in this document has been audited by any independent auditor. This earnings supplement is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. We may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors. 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.
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APA CORPORAT ION Defined Capital Allocation Strategy with Improving Balance Sheet ⎻ Return at least 60% of free cash flow to investors through base dividend and share repurchases ⎻ Continue to strengthen balance sheet and debt rating metrics ⎻ Strong liquidity and advantageous long-dated debt maturity profile Differentiated Exploration Upside as Demonstrated by Suriname Success ⎻ Announced FID on Block 58 Suriname; significant FCF growth upside starting in 2028 ⎻ Balanced exploration portfolio across basin maturity and risk profile, from step-out focus in the Permian & Egypt to play-opening opportunities in Uruguay & Alaska ⎻ Pursuing scalable and impactful opportunities with attractive cost of supply Building a Sustainable Base, Anchored by Permian and Egypt ⎻ Permian Basin 75% of total Adjusted Production ⎻ Transformed Permian into large-scale, focused unconventional position ⎻ Egypt oil (2021) & gas (2024) terms renegotiated, improving economics and increasing duration ⎻ Egypt gas at parity with mid-cycle Brent price economics; significant potential for long-term success Permian and Egypt Durability with Visible Growth 3
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APA CORPORAT ION Early Progress on Controllable Spend Increasing 2025 Expected Realized Savings to $130MM, Doubling YE25 Run-Rate Savings Target to $225MM ($ in millions) Original Guide (Feb-2025) Updated Guide (May-2025) Change DC&F Capex(1) $2,150 $2,000 ($150) LOE $1,550 $1,600 $50 G&A $415 $385 ($30) Total $4,115 $3,985 ($130) FY25 Guidance (Midpoint) Original 2025 Realized Savings Target $60 Million May-2025 Increase $70 Million Updated 2025 Realized Savings Target $130 Million FY25 Expected Realized Savings Target FY25 Guide, Midpoint (Feb-2025) Realized Cost Savings Other FY25 Guide, Midpoint (May-2025) Original guidance contemplated $60MM of realized savings $4,115MM $3,985MM $70MM Additional realized cost savings $60MM $40MM of deferred activity, $20MM of stock-linked comp Note: Controllable Spend excludes items such as: GPT, interest expense, cash taxes, TRS, Incentive and Stock Compensation, and Suriname + Exploration Capital (1) Excludes ARO spend. Please refer to the glossary of referenced terms for the updated definition of upstream capital investment. 4
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APA CORPORAT ION Progress made since 2023 resultant of successful Callon integration and continued improvements thereafter Driving Permian Capital Efficiency ⎻ Reducing Permian rig count from 8 to 6 in 2Q25 ⎻ Lowering FY25 U.S. capital guidance by $130MM ⎻ U.S. oil production guidance unchanged ⎻ Flexibility to reduce activity further if commodity prices continue to decline 5 2023 (APA + CPE) 2024 (APA + 1Q CPE) 2025 (Guidance) Permian Rigs (Annual Average) 11 10 ~6.75 Development Capital(2) ($MM) ~$2,100 ~$2,130 ~$1,515 U.S. Oil Production (Mbo/d) 120 128 125-127 2023 2025E 2023 2025E 2023 2025E Average Rigs Capex ($MM) Oil Production (Mbo/d) (28%)(40%) +5% (1) Permian data excludes contribution from assets sold during the period but includes the recently announced New Mexico divestiture. (2) Development capital excludes annual ARO spend of ~$15MM, ~$20MM and ~$30MM in 2023, 2024 and 2025, respectively. Doing More with Less in the Permian(1)
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APA CORPORAT ION 1Q24 2Q24 3Q24 4Q24 1Q25 6 Average Feet Drilled per Day Realizing Significant Permian Drilling Efficiencies 1Q24 2Q24 3Q24 4Q24 1Q25 ~1,200 ~1,700 ~850 ~1,140 Midland Basin Delaware Basin Pro-Forma Callon in 1Q24 – Drilling efficiency gains driving the bulk of APA’s reduction in annual development capital guidance – Attributable to widespread, structural changes in drilling practices across the Permian – Anticipate to capture further efficiency improvements across drilling, completions and facilities throughout 2025 and beyond Improvements have reduced rigs required to deliver maintenance U.S oil production from 8 to 6.5 Rigs required to maintain flat U.S. production have decreased from 8 to 6.5 due to improved drilling performance
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APA CORPORAT ION 7 2025 Permian Activity Cadence 440 465 125 122 40 50 60 70 80 90 100 110 120 130 0 100 200 300 400 500 600 1Q25 2Q25E 3Q25E 4Q25E Permian Capital ($MM) U.S. Oil Production (Mbo/d) Permian Capital and U.S. Oil Production(1) (1) Includes volumes and capital related to the recently announced, but not yet closed New Mexico Divestiture. – Reducing rig count from 8 to 6 by the end of the second quarter – Adjusting completion timing to better align with revised rig count – 2H25 capital expected to be 33% lower than 1H25, production back-half weighted to deliver FY25 guidance of 125-127 Mbo/d Highlights
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APA CORPORAT ION $2.94 $3.19 $3.40 $3.60 $3.80 FY24 1Q25 2Q25E 3Q25E 4Q25E Strong Progress and Outlook for Egypt Gas 8 Egypt Realized Gas Price ($/Mcf) – Year-over-year growth in gas volumes for the first time in 12 years – Material exploration and appraisal prospects with access to existing infrastructure – New pricing agreement allocates higher fixed price on incremental volumes above pre-determined PDP decline – Realized price expected to increase over time with growing proportion of volumes receiving new, higher price – Applies to all Merged Concession volumes, including associated gas New price effective 1/1/25 473 444 457 470 470 490 FY24 1Q25 2Q25E 3Q25E 4Q25E Expected Gross Gas Production (MMcf/d) Scheduled plant downtime
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APA CORPORAT ION APA’s Differentiating Factors in a Lower Oil Price Environment 9 Egypt PSC & Gas Opportunity Cost Focus Oil & Gas Marketing Contracts ⎻ Advantaged during periods of domestic & global pricing volatility ⎻ Hedged ~2/3rds of 2025 firm gas transport basis ⎻ Contracts expected to generate ~$1.1 billion of cumulative pre-tax cash flow since the start of 2024 ⎻ APA receives a higher portion of net production at lower oil prices as part of the production sharing contract, providing downside protection ⎻ New gas pricing agreement provides a competitive, fixed gas price for incremental volumes ⎻ Rigorously managing Capital, LOE, Overhead cost structure to deliver sustainable savings ⎻ Doubling YE25 run-rate savings target to $225MM, increasing realized in- year savings target to $130MM ⎻ Permian efficiency gains enable APA to deliver planned TILs with 2 fewer rigs in 2H25 $575 Million In 2025E Third-Party Trading Income
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APA CORPORAT ION 10 First Quarter and Asset Overview
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APA CORPORAT ION 11 1Q 2025 Global Portfolio Global 468,978 BOE/D Reported Production 63 Gross, 60 Net Drilled & Completed Wells 50% / 17% / 33% Oil / NGL / Gas 22 Average Rigs $123 Million Net Gain on Third-Party Oil & Gas Trading Activities Corporate ⎻ Development capital below guidance primarily due to drilling efficiencies in the Permian and Egypt ⎻ Moved Apache debt to APA and refinanced credit facilities Permian ⎻ Significant cycle-time improvements allowing APA to reduce rig count from 8 to 6 by the end of 2Q25 while maintaining FY25 U.S. oil guidance ⎻ Announced New Mexico asset sale for $608MM in proceeds, prior to closing adjustments; Expected to close in late 2Q25 Egypt ⎻ Delivered strong gross gas production with realized price of $3.19/Mcf, ahead of guidance Alaska ⎻ Announced significant oil discovery followed by a successful flow test at Sockeye-2 indicating higher reservoir quality compared to regional offsets ⎻ Technical evaluation underway to determine next steps Highlights 298,319 BOE/D Reported Production United States 9 Average Rigs (incl. AK) 31 Gross, 25 Net Drilled & Completed Wells 42% / 26% / 32% Oil / NGL / Gas 170,659 BOE/D Reported Production International 13 Average Rigs (Egypt) 29 Gross, 29 Net Drilled & Completed Wells 65% / 1% / 34% Oil / NGL / Gas First Quarter in Review
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APA CORPORAT ION 0 20 40 60 80 Operations Anchored by the Permian and Egypt 478 310 (1) U.S. independents include: CIVI, CTRA, MTDR, OVV, PR, and SM. (2) Permian net acres as of 4Q24 disclosures. (3) Permian production as of 4Q24. APA production reflects 4Q24 U.S. production less 3 Mboe/d of GoA & other producing regions. Permian Production (Mboe/d)(1)(3)Permian Net Acres (‘000)(1)(2) 12 Permian Weighted Operations U.S. (Permian) Egypt North Sea 1Q25 Adjusted Production (Mboe/d) 1Q25 Development Capital 75% 17% 8% 80% 20% <1% Historical Egypt Production Profile Egypt Adjusted Production (Mboe/d) Competitive Permian Cornerstone Egypt: Free Cash Flow Durability with Gas Upside ⎻ Strong stable free cash flow generation ⎻ Recent changes to the PSC improve economic durability ⎻ Gas margins now competitive with oil at mid-cycle prices, recent activity showing promising results ⎻ Initiated gas exploration program, success would underpin longer-term growth U.S. Independent Peers
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APA CORPORAT ION Exploration Portfolio Led by Suriname Block 58 P E R M I A N S U R I N A M E E G Y P T A L A S K A U R U G U A Y $0 $500 $1,000 2028 2029 2030 2031 2032 $60 Brent Scenario $80 Brent Scenario (1) Net to APA. Assumes 20% participation by Staatsolie. Includes first oil payment and royalty payment per barrel contemplated in JV agreement. Please refer to the glossary of referenced terms for the definition of free cash flow. 13 $MM Suriname ⎻ 220,000 B/d oil project underway with partner TotalEnergies ⎻ APA’s carry agreement significantly reduces capital exposure ⎻ First oil expected in 2028 with APA net production growth into the 2030s ⎻ Near-field exploration targets have potential to extend production plateau ⎻ Exploration phase extended Alaska ⎻ Announced significant discovery at Sockeye-2 exploration well ⎻ Flow test confirms attractive rock properties compared to regional offsets Egypt ⎻ Initial gas development / appraisal drilling exceeding expectations ⎻ Leveraging existing infrastructure, evaluating expansion needs pending exploration success Permian ⎻ Delineation of secondary / step-out zones Uruguay ⎻ Ownership in two large offshore blocks with low cost of entry Suriname Expected Free Cash Flow Profile(1)Exploration Portfolio Highlights Global Exploration Portfolio
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APA CORPORAT ION $0 $15 $30 $45 $60 APA’s Interest in GranMorgu Equates to 400 Midland Basin Locations at ~30% of the Cost Suriname GranMorgu: World Class Opportunity 14 Top Tier Cash Field Margin(2)(3)(4) ($ / BOE) Shale Pure-Play Peers GranMorgu (1) Source data: Enverus, TX RRC. Average of all hz wells turned in-line in the Midland Basin between 2022 – Feb-2025. Assumes $9MM gross well costs. (2) Reflects per BOE: Realized price less LOE, GPT and production & ad valorem taxes. (3) U.S. shale peer data reflects FY24 actuals. GranMorgu data reflects FY24 average Brent oil price and expected full-life average operating costs. (4) Shale peers include CHRD, CIVI, DVN, FANG, OVV, PR. Highly attractive project economics enhanced by carry structure GranMorgu (APA Net) Midland Basin (Average Well)(1) EUR (Oil) 180 MMBO + 180 MMBO Total Capital Invested ~$1.1 Billion ~$3.6 Billion Well Locations 32 ~400 First-Year Decline Rate Flat ~60%
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APA CORPORAT ION 15 Guidance Updates
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APA CORPORAT ION Third-Party Oil & Gas Trading Summary $123 $332 $120 $575 $ Millions 1Q25 Realized(1) 2Q25-4Q25 Hedged gas transport, net of transport charges and fuel 16 2Q25-4Q25 Oil, Gas, & LNG at Strip(3) (1) Realized activity reflects third-party net gain on oil and gas purchases and sales. (2) Weighted average pricing; Please refer to the appendix for details on outstanding commodity derivatives. (3) Strip pricing as of as of 4/30/25. MMbtu/d Index Spread Hedged 504,545 ($2.93)(2) Unhedged 243,455 Waha / HSC Total Volumes 748,000 Firm Transport ⎻ 1Q25 realized gain of ~$123 million ⎻ During the first quarter, hedged ~67% of 2Q25-4Q25 firm transport volumes ⎻ LNG volumes remain unhedged 2025 Pre-Tax Margin Guidance(1)(3)
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APA CORPORAT ION Corporate Items ($ in millions) 2Q 2025 FY 2025 Lease Operating Expense $390 $1,575 - $1,625 Gathering, Processing & Transmission Expense $105 $415 General & Administrative Expense $95 $385 DD&A Expense $590 $2,350 Oil and Gas Purchases and Sales, Net(1)(3) $150 $575 Cash ARO & Decommissioning Spend $65 $170 U.S. & U.K. Current Income Tax Expense(1) $30 $240 17 Guidance Average Daily Production (‘000) 2Q 2025 FY 2025 Total Company Reported (Oil / BOE)(1) 231 / 457 233 / 463 Total Company Adjusted (Oil / BOE)(1) 191 / 391 193 / 396 U.S. (Oil / BOE) 122 / 289 125 - 127 / 296 Egypt Reported (BOE)(1) 140 (61% oil) 140 (61% oil) Egypt Adjusted (BOE)(1) 75 (61% oil) 73 (61% oil) Capital Investment ($ in millions) 2Q 2025 FY 2025 DC&F Capital (Permian, Egypt, North Sea) $595 $1,950 - $2,050 Suriname Development Capital $30 $200 Exploration Capital $15 $75 Upstream Capital Investment(2) $640 $2,225 - $2,325 FY25 G&A guidance includes ~$60 million of stock-linked comp FY25 Includes North Sea production of 22 Mbo/d & 27 Mboe/d ~50% U.S. and ~50% U.K. in FY25 (1) Guidance based on FY25 commodity strip pricing as of 4/30/25. (2) Refer to glossary of referenced terms for definition of Upstream Capital Investment. (3) Reflects third-party gain on oil and gas purchases and sales. $150MM reduction in FY25 DC&F capex $100MM of ARO moved to corp. items per APA’s updated definition $25MM reduction in FY25 exploration capital Equates to reported production less tax & NCI barrels Includes basis hedges New Line Item: $100MM of ARO, $70MM of Decom spend $175MM reduction in FY25 capex guidance
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APA CORPORAT ION 18 Appendix
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APA CORPORAT ION Strong Balance Sheet and Manageable Maturities 19 1,001 2,936 3,938 51 211 108 325 235 516 3,183 Liquidity 2025 2026 2027 2028 2029 2030 ≥ 2035 Available Capacity Liquidity & Debt Maturity Profile ($MM)(1) (1) As of 3/31/2025; Debt excludes any unamortized discount, debt issuance costs, and finance leases (2) £1.5B credit facility and GBP letters of credit (~£183MM) converted to USD at 1.29 USD/GBP Commercial Paper and Letters of Credit(2) Credit Facilities $2,000MM (2030) £1,500MM(2) (2030) ($ in millions) Apache APA Total Bonds Outstanding (12/31/24) $4,835 - $4,835 Obligor Exchange (2,741) 2,740 (1) Tender Offer (1,000) - (1,000) New Issuance - 850 850 Open Market Repurchases (55) - (55) Bonds Outstanding (3/31/25) $1,039 $3,590 $4,629 Obligor Exchange & Tender Offer Overview ⎻ Moved ~$3.6B Apache bonds to APA ⎻ Reduced bonds by ~$200MM ⎻ Refinanced unsecured credit facilities, 2030 maturity ⎻ Repaid Callon term loan 1Q25 Activity Bond Overview Bonds Outstanding(1) $4,629MM Avg. Coupon ~5.631% Avg. Maturity ~14.3 Yrs
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APA CORPORAT ION Reconciliation to Non-GAAP Definition Update Changing Definitions for Upstream Capital Investment and Free Cash Flow; No Impact to Bottom Line Old Definitions 1Q25 Non-GAAP Free Cash Flow ($MM) 1Q25 Operating Cash Flow before changes in operating assets and liabilities $ 1,051 Less: Upstream Capital Investment $ (742) Less: Capital Investment of NCI $ (56) Less: Decommissioning spend $ (1) Less: Leasehold acquisition and other $ - Less: Distributions to Sinopec NCI $ (126) Free Cash Flow $ 126 1Q25 Non-GAAP Free Cash Flow ($MM) 1Q25 Operating Cash Flow before changes in operating assets and liabilities $ 1,051 Less: Upstream Capital Investment $ (710) Less: Capital Investment of NCI $ (56) Less: Abandonment and Decommissioning spend $ (28) Less: Leasehold acquisition and other $ (5) Less: Distributions to Sinopec NCI $ (126) Free Cash Flow $ 126 New Definitions Reference 1 2 3 4 5 2 1 Upstream Capital Investment previously included Abandonment Spend and Leasehold Acquisition costs 2 Free Cash Flow unchanged with new definition 3 Upstream Capital Investment now excludes Abandonment Spend and Leasehold Acquisition 4 Free Cash Flow is now directly reduced by Abandonment Spend and consistently presented with Decommissioning Spend 5 Free Cash Flow is now directly reduced by Leasehold Acquisitions and consistently presented with other Non-Oil and Gas Capital spend Please refer to the glossary of referenced terms for the definition of upstream capital investment and free cash flow. 20
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APA CORPORAT ION Upstream Capital Investment ($ in millions) 1Q 2025 United States* $480 Egypt (excluding noncontrolling interest) $112 North Sea $2 Suriname $116 Upstream Capital Investment Total** $710 21Note: Please refer to the glossary of referenced terms for the definition of Upstream Capital Investment. *United States capital includes ~$41 million of Alaska exploration investment in 1Q25. **Excludes ~$27MM of cash ARO spend, per APA’s updated Upstream Capital definition. APA’s original 1Q25 Upstream Capital guidance of $765MM included cash ARO spend.
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APA CORPORAT ION Egypt Production Detail 22 4Q 2024 1Q 2025 Oil (Bbls/d) Gas (Mcf/d) Boe/d Oil (Bbls/d) Gas (Mcf/d) Boe/d Gross Production 134,504 438,052 207,513 128,025 456,955 204,184 Reported Production 89,927 300,118 139,947 86,173 317,209 139,041 % Gross 67% 69% 67% 67% 69% 68% Less: Tax Barrels 22,402 75,395 34,968 22,391 83,876 36,370 Net Production Excluding Tax Barrels 67,525 224,723 104,979 63,782 233,333 102,671 % Gross 50% 51% 51% 50% 51% 50% Less: Noncontrolling Interest 22,508 74,907 34,993 21,261 77,778 34,224 Adjusted Production 45,017 149,816 69,986 42,521 155,555 68,447 % Gross 33% 34% 34% 33% 34% 34% MBOE/D 2023 2024 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Gross Production 232 227 223 220 214 211 211 208 204 Reported Production 147 144 139 144 135 133 142 140 139 Adjusted Production 71 70 66 70 66 65 69 70 68 Brent Oil Benchmark Pricing $82 $78 $86 $83 $82 $85 $79 $74 $75
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APA CORPORAT ION Commodity Derivative Instruments 23 Production Period Settlement Index MMBtu (in 000’s) Weighted Average Price Differential MMBtu (in 000’s) Weighted Average Price Differential April – December 2025 NYMEX Henry Hub / IF Waha 126,500 $(3.16) - - April – December 2025 NYMEX Henry Hub / IF HSC - - 49,500 $(0.51) May – December 20251 NYMEX Henry Hub / IF Waha 12,250 $(3.10) - - May – December 20251 NYMEX Henry Hub / IF HSC - - 12,250 $(0.48) (1) Includes hedges subsequently entered into after 3/31/2025. Basis Swap Purchased Basis Swap Sold
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APA CORPORAT ION 24 Glossary of Referenced Terms ⎻ Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, and capitalized overhead. Excludes capital investment for property and leasehold acquisitions, non-cash asset retirement additions and revisions, capitalized interest, certain exploration expenses, and Egypt noncontrolling interest. ⎻ Free Cash Flow: Cash flow from operations before changes in operating assets and liabilities (including Egypt noncontrolling interest) ⎻ Minus: ⎻ Upstream Capital Investment (including Egypt minority interest) ⎻ Abandonment and decommissioning spend ⎻ Leasehold acquisitions and non-oil and gas capital investment ⎻ Distributions to noncontrolling interest (Egypt) ⎻ In addition to the terms above, a list of commonly used definitions and abbreviations can be found in APA Corporation’s Form 10-K.
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APA CORPORAT ION 25 Non-GAAP Reconciliations
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APA CORPORAT ION Non – GAAP Reconciliation Adjusted EBITDAX Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’s on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry. 26 ($ in millions) March 31, December 31, March 31, 2025 2024 2024 Net cash provided by operating activities 1,096$ 1,036$ 368$ Adjustments: Exploration expense other than dry hole expense and unproved leasehold impairments 19 12 15 Current income tax provision 306 308 300 Other adjustments to reconcile net income to net cash provided by operating activities (13) (16) (10) Changes in operating assets and liabilities (45) 107 459 Financing costs, net (excludes gain on extinguishment of debt) 85 91 76 Transaction, reorganization & separation costs 37 12 27 Adjusted EBITDAX (Non-GAAP) 1,485$ 1,550$ 1,235$ For the Quarter Ended
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APA CORPORAT ION Non – GAAP Reconciliation Cash Flow Before Changes in Operating Assets & Liabilities and Free Cash Flow Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities and Free Cash Flow Cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP financial measures. APA uses these measures internally and provides this information because management believes it is useful in evaluating the company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt, as well as to compare our results from period to period. We believe these measures are also used by research analysts and investors to value and compare oil and gas exploration and production companies and are frequently included in published research reports when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities and free cash flow are additional measures of liquidity but are not measures of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities. Additionally, this presentation of free cash flow may not be comparable to similar measures presented by other companies in our industry. 27 ($ in millions) 2025 2024 Net cash provided by operating activities 1,096$ 368$ Changes in operating assets and liabilities (45) 459 Cash flows from operations before changes in operating assets and liabilities 1,051$ 827$ Adjustments to free cash flow: Upstream capital investment including noncontrolling interest - Egypt (766) (627) Abandonment and decommissioning spend (28) (39) Leasehold acquisitions and other (5) 8 Distributions to Sinopec noncontrolling interest (126) (70) Free cash flow 126$ 99$ For the Quarter Ended March 31,
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APA CORPORAT ION Non – GAAP Reconciliation Segment Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors and widely accepted by those following the oil and gas industry as a financial indicator of a company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and is frequently included in published research when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities. 28 North Sea Egypt U.S. and Other Consolidated Net cash provided by operating activities (38)$ 525$ 609$ 1,096$ Changes in operating assets and liabilities 79 (149) 25 (45) Cash flows from operations before changes in operating assets and liabilities 41$ 376$ 634$ 1,051$ Ended March 31, 2025 For the Quarter ($ in millions)
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APA CORPORAT ION Non – GAAP Reconciliation Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. ($ in millions) 29 March 31, December 31, September 30, June 30, 2025 2024 2024 2024 Current debt 131$ 53$ 2$ 2$ Long-term debt 5,237 5,991 6,370 6,741 Total debt 5,368 6,044 6,372 6,743 Cash and cash equivalents 67 625 64 160 Net debt 5,301$ 5,419$ 6,308$ 6,583$
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APA CORPORAT ION Non – GAAP Reconciliation Upstream Capital Investment Reconciliation of Costs Incurred to Upstream Capital Investment Management believes the presentation of upstream capital investments is useful for investors to assess APA's expenditures related to our upstream capital activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude property and leasehold acquisitions, asset retirement additions and revisions, capitalized interest, and certain exploration expenses. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of APA's cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget. ($ in millions) 30 2025 2024 Costs incurred in oil and gas property: As set and leasehold acquisitions 9$ 63$ Exploration and development 794 654 Total Costs incurred in oil and gas property 803$ 717$ Total Costs incurred in oil and gas property 803$ 717$ As set and leasehold acquisitions (9) (63) As set retirement obligations incurred - oil and gas property (5) (5) Capitalized interest (4) (7) Exploration seismic and administration costs (19) (15) Upstream capital investment including noncontrolling interest - Egypt 766$ 627$ Less noncontrolling interest - Egypt (56) (69) Total Upstream capital investment 710$ 558$ Reconciliation of Costs incurred to Upstream capital investment: For the Quarter Ended March 31,
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