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CLOSED · 23:20 ET
Market ClerkRecap
Wed Oct 21 · markets closed2 signals today108 insider buys this week · $250.3MCIRO short report next: Oct 31The week ahead

APA

APA Corp
NASDAQ · ENERGY · CRUDE PETROLEUM & NATURAL GAS
49.63
−0.27 −0.54%
USD · close Oct 21
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Work order
70
PASS · shorts 70
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
1 / 15
tracked funds hold it
Calls on record
0
nobody we score has called it yet
MKT CAP $17.4BP/E 10.5DIV YIELD 2.01%FCF YIELD —REV TTM —NET INCOME $1.7B +55.1%NET DEBT $8.3B52W 21.66 – 49.90SEC XBRL · TTM TO Invalid Date

How APA rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
34%
of sentences unchanged
Added
415
new sentences
Dropped
524
sentences removed
Length
−6,710
words, now 39,527

New in FY2025

  • Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2025 2024 2023 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 4,545 $ 3,620 $ 3,129 Fixed-rate debt borrowings 846 — — Proceeds from asset divestitures 611 1,609 29 Proceeds from term loan facility — 1,500 — Proceeds from sale of Kinetik shares — 428 228 Total Sources of Cash and Cash Equivalents 6,002 7,157 3,386 Uses of Cash and Cash Equivalents: Additions to oil and gas property (1) 2,740 2,851 2,313 Acquisition of Delaware Basin properties — — 24 Leasehold and property acquisitions 26 60 20 Payments on term loan facility 900 600 — Payments on commercial paper and revolving credit facilities, net 333 40 194 Payments on Callon Credit Agreement — 472 — Payments on fixed-rate debt 1,016 1,641 65 Dividends paid to APA common stockholders 360 353 308 Distributions to noncontrolling interest 430 268 238 Treasury stock activity, net 280 246 329 Other, net 26 88 53 Total Uses of Cash and Cash Equivalents 6,111 6,619 3,544 Increase (decrease) in cash and cash equivalents $ (109) $ 538 $ (158) (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
  • Net cash provided by operating activities for the year ended December 31, 2025 totaled $4.5 billion, up $925 million from the year ended December 31, 2024, primarily due to collection of outstanding receivables, lower overall expenses, and timing of other working capital items.
  • Fixed-Rate Debt Borrowings During the year ended December 31, 2025, the Company issued new notes for proceeds of $846 million, after deducting discounts and loan costs, to fund in part APA’s purchase of Apache notes in APA’s cash tender offers.
  • Proceeds from Asset Divestitures The Company received $611 million and $1.6 billion in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2025 and 2024, respectively.
  • Uses of Cash and Cash Equivalents Additions to Oil & Gas Property Exploration and development cash expenditures were $2.7 billion and $2.9 billion for the years ended December 31, 2025 and 2024, respectively.
  • The decrease in capital investment is reflective of the Company’s plan to streamline capital deployment and the sale of certain non-core assets and leasehold in the Permian Basin.
  • The Company operated an average of 19 drilling rigs during 2025, compared to an average of 22 drilling rigs during 2024.
  • Leasehold and Property Acquisitions During 2025 and 2024, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $26 million and $60 million, respectively.
  • Payments on Term Loan Facility During 2025 and 2024, the Company made payments of $900 million and $600 million, respectively, on its syndicated term loan credit agreement and fully repaid the term loans.
  • For additional details of this credit agreement, see “ Unsecured Committed Term Loan Facility” in the Liquidity section below.
  • Payments on Commercial Paper and Revolving Credit Facilities, Net During 2025, the Company made net payments of $333 million on its commercial paper and U.S. dollar denominated syndicated credit facility borrowings.
  • As of December 31, 2025, there were no outstanding borrowings under the Company’s commercial paper or syndicated credit facilities.
  • Payments on Fixed-Rate Debt During 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures of Apache and made open market repurchases of indenture debt of APA and Apache, and Apache redeemed certain notes for aggregate cash payments of $1.0 billion, reflecting principal amounts, discount to par, and associated fees.
  • During 2024, the Company financed Callon’s repayment pursuant to Callon’s cash tender offers for, and redemptions of all senior notes issued under Callon’s indentures for an aggregate cash payment of $1.6 billion, reflecting principal amounts, premium to par, and associated fees.
  • Dividends Paid to APA Common Stockholders The Company paid $360 million and $353 million during the years ended December 31, 2025 and 2024, respectively, for dividends on its common stock.
  • Distributions to Noncontrolling Interest Sinopec holds a one-third minority participation interest in the Company’s oil and gas operations in Egypt.
  • The Company paid $430 million and $268 million during the years ended December 31, 2025 and 2024, respectively, in cash distributions to Sinopec.
  • Treasury Stock Activity, Net During 2025, the Company repurchased 12.9 million shares at an average price of $21.73 per share totaling $280 million, and as of December 31, 2025, the Company had remaining authorization to repurchase 21.9 million shares.
  • During 2024, the Company repurchased 9.2 million shares at an average price of $26.83 per share totaling $246 million.
  • Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2025 2024 (In millions) Cash and cash equivalents $ 516 $ 625 Total debt – APA and Apache 4,493 6,044 Total equity 7,003 6,362 Available committed borrowing capacity under syndicated credit facilities 4,020 2,966 Cash and Cash Equivalents As of December 31, 2025, the Company had $516 million in cash and cash equivalents.
  • Debt As of December 31, 2025, the Company had $4.5 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache, and finance lease obligations.
  • As of December 31, 2025, current debt included $2 million of finance lease obligations and $211 million of APA and Apache notes coming due within the next year.
  • Indenture Debt Activity On August 20, 2025, Apache redeemed the outstanding $51 million principal amount of 4.625% Notes due 2025, at a redemption price equal to 100 percent of their principal amount, plus accrued and unpaid interest to the redemption date.
  • During 2025, the Company purchased in the open market and had canceled indebtedness issued under indentures of APA and Apache in an aggregate principal amount of $ 122 million for an aggregate purchase price of $ 112 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $ 13 million.
  • The Company recognized a $ 12 million gain on these repurchases.
  • Refer to discussion of APA exchange and tender offers for Apache indenture debt below for further details regarding the gain on extinguishment of debt during the quarter ended March 31, 2025.
  • The indentures under which APA has issued senior notes and debentures restrict it from issuing or guaranteeing certain secured indebtedness, consolidating with or merging into another person, and transferring or leasing its properties and assets as an entirety or substantially as an entirety to any person.
  • Indentures of APA and Apache do not contain prepayment obligations in the event of a decline in credit ratings.
  • In connection with the transactions summarized below under “APA Exchange and Tender Offers for Apache Indenture Debt”, Apache’s indentures were amended on January 10, 2025 to remove certain restrictive and reporting covenants, except those applicable to certain notes maturing in 2026 and 2027.
  • APA Exchange and Tender Offers for Apache Indenture Debt On January 10, 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures issued by Apache under its indentures.
  • In settling these offerings pursuant to their respective terms: • A PA issued new notes and debentures under its indentures in aggregate principal amounts of (i) $ 2.5 billion in exchange for Apache notes and debentures tendered and accepted in APA’s exchange offers, (ii) $ 203 million in exchange for Apache notes tendered in the cash tender offers in excess of the stated maximum purchase amount or series caps, and (iii) $ 850 million in the new notes offering, comprised of $ 350 million aggregate principal amount of APA’s 6.10 % Notes due 2035 and $ 500 million aggregate principal amount of APA’s 6.75 % Notes due 2055. • In addition to issuing the APA notes in the exchange offers, APA paid a total of $ 2.5 million in cash as part of the exchange consideration. • APA paid a total of $ 869 million in cash in the tender offers (comprised of tender offer consideration, exchange consideration for tendered notes exchanged, early participation premium, and accrued interest) for the aggregate $ 1 billion in principal amount of Apache notes tendered and accepted in the cash tender offers.
  • The Company recognized a gain of $ 135 million on these purchases, including broker fees and loan costs. • Net proceeds from the sale of the notes in APA’s new notes offering, after deducting the initial purchasers’ discounts and estimated offering expenses, were approximately $ 839 million and used to fund in part APA’s purchase of Apache notes in APA’s cash tender offers. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers had the same interest rate, maturity date, and interest payment dates and the same optional redemption prices (if any) as the corresponding series of Apache notes and debentures for which they were exchanged. • Each series of APA notes and debentures issued in settlement of the exchange and tender offers and new notes offering were fully and unconditionally guaranteed by Apache until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures was less than $ 1 billion, which occurred in May 2025, after which Apache’s guarantees were terminated in accordance with their terms on May 16, 2025. • APA entered into two registration rights agreements pursuant to which APA agreed to register under the Securities Act of 1933, as amended, the notes and debentures that APA issued in the exchange and tender offers and new notes offering (collectively, the Unregistered Notes).
  • On September 18, 2025, APA settled registered exchange offers for the Unregistered Notes, issuing registered notes and debentures in the same aggregate principal amount as the Unregistered Notes accepted for exchange and canceled and otherwise on terms substantially identical in all material respects to the applicable series of Unregistered Notes.
  • Of the $ 3.6 billion aggregate principal amount of Unregistered Notes covered by the registered exchange offers, 99 percent was exchanged for registered notes and debentures, and the remaining Unregistered Notes remained outstanding.
  • Unsecured 2025 Committed Bank Credit Facilities On January 15, 2025, the Company entered into two unsecured syndicated credit agreements for general corporate purposes: • One agreement is denominated in US dollars (the 2025 USD Agreement) and provides for an unsecured five-year revolving credit facility for loans and letters of credit, with aggregate commitments of US$ 2.0 billion (including a letter of credit subfacility of up to US$ 750 million, of which US$ 250 million currently is committed).
  • Apache guaranteed obligations under each of the 2025 USD Agreement and 2025 GBP Agreement (each, a 2025 Agreement) effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first was less than US$1.0 billion, which occurred in May 2025, after which Apache’s guarantees were terminated in accordance with their terms on May 16, 2025.
  • The 2025 Agreements replaced on substantially the same terms two syndicated credit agreements that the Company entered in April 2022, one of which was denominated in US dollars with aggregate commitments of US$ 1.8 billion (the 2022 USD Agreement) and second of which was denominated in pounds sterling with aggregate commitments of £ 1.5 billion (the 2022 GBP Agreement).
  • On January 15, 2025, the Company terminated commitments under both the 2022 USD Agreement and 2022 GBP Agreement in connection with entry into the 2025 Agreements.
  • As of December 31, 2025, there were no borrowings or letters of credit outstanding under the 2025 USD Agreement and no borrowings and an aggregate £ 1.0 million in letters of credit outstanding under the 2025 GBP Agreement.
  • As of December 31, 2024, there were $ 10 million of borrowings and no letters of credit outstanding under the 2022 USD Agreement and no borrowings and an aggregate £ 303 million in letters of credit outstanding under the 2022 GBP Agreement.

and 375 more.

Gone since FY2024

  • Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2024 2023 2022 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 3,620 $ 3,129 $ 4,943 Proceeds from commercial paper and revolving credit facilities, net — — 24 Proceeds from asset divestitures 1,609 29 778 Proceeds from term loan facility 1,500 — — Proceeds from sale of Kinetik shares 428 228 224 Total Sources of Cash and Cash Equivalents 7,157 3,386 5,969 Uses of Cash and Cash Equivalents: Additions to oil and gas property (1) 2,851 2,313 1,770 Acquisition of Delaware Basin properties — 24 591 Leasehold and property acquisitions 60 20 37 Payments on term loan facility 600 — — Payments on commercial paper and revolving credit facilities, net 40 194 — Payments on Callon Credit Agreement 472 — — Payments on fixed-rate debt 1,641 65 1,493 Dividends paid to APA common stockholders 353 308 207 Distributions to noncontrolling interest – Egypt 268 238 362 Treasury stock activity, net 246 329 1,423 Deconsolidation of Altus cash and cash equivalents — — 143 Other, net 88 53 — Total Uses of Cash and Cash Equivalents 6,619 3,544 6,026 Increase (decrease) in cash and cash equivalents $ 538 $ (158) $ (57) (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
  • Net cash provided by operating activities for the year ended December 31, 2024 totaled $3.6 billion, up $491 million from the year ended December 31, 2023, primarily due to higher oil and gas revenues resulting from increased drilling activity in the Permian Basin and production from the acquired Callon properties, partially offset by lower realized commodity prices.
  • Proceeds from Asset Divestitures The Company received $1.6 billion and $29 million in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2024 and 2023, respectively.
  • Proceeds from Term Loan Facility On April 1, 2024, the Company borrowed an aggregate $1.5 billion under a syndicated credit agreement.
  • Loan proceeds were used to refinance certain indebtedness of Callon upon the closing of the Callon acquisition.
  • For additional details of the credit agreement, see “ Unsecured Committed Term Loan Facility” in the Liquidity section below.
  • As of December 31, 2024, $900 million remained outstanding under the term loan facility governed by the Term Loan Credit Agreement.
  • Proceeds from Sale of Kinetik Shares The Company received $428 million and $228 million of cash proceeds from the sales of its Kinetik Shares during 2024 and 2023, respectively.
  • For more information regarding the Company’s equity method interests, refer to Note 6—Equity Method Interests in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
  • Uses of Cash and Cash Equivalents Additions to Oil & Gas Property Exploration and development cash expenditures were $2.9 billion and $2.3 billion for the years ended December 31, 2024 and 2023, respectively.
  • The increase is reflective of the Company’s acquisition of Callon, which increased the number of drilling rigs being operated in the Permian Basin, partially offset by the Company’s efforts to balance workover activity in Egypt and reduce drilling activity in the North Sea as it continually assesses inventory opportunities across its diverse portfolio in 2024.
  • The Company operated an average of 22 drilling rigs during 2024, compared to an average of 24 drilling rigs during 2023.
  • Leasehold and Property Acquisitions During 2024 and 2023, in addition to the Callon acquisition, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $60 million and $20 million, respectively.
  • Payments on Term Loan Facility During 2024, the Company made payments of $600 million on its syndicated term loan credit agreement.
  • Payments on Commercial Paper and Revolving Credit Facilities, Net As of December 31, 2024, outstanding borrowings under the Company’s commercial paper and U.S. dollar denominated syndicated credit facility were $333 million, a decrease of $40 million from December 31, 2023 as operating cash flows generated in 2024 were used to repay facility borrowings.
  • Payments on Callon Credit Agreement Upon closing of the Callon acquisition, the Company financed Callon’s repayment in full of its $472 million outstanding under the Callon Credit Agreement.
  • Payments on Fixed-Rate Debt In April and May of 2024, the Company financed Callon’s repayment pursuant to Callon’s cash tender offers for, and redemptions of all senior notes issued under Callon’s indentures for an aggregate cash payment of $1.6 billion, reflecting principal amounts, premium to par, and associated fees.
  • The Company may, and expects that Apache will continue to, reduce debt outstanding under its indentures from time to time.
  • Dividends Paid to APA Common Stockholders The Company paid $353 million and $308 million during the years ended December 31, 2024 and 2023, respectively, for dividends on its common stock.
  • Distributions to Noncontrolling Interest - Egypt Sinopec International Petroleum Exploration and Production Corporation (Sinopec) holds a one-third minority participation interest in the Company’s oil and gas operations in Egypt.
  • The Company paid $268 million and $238 million during the years ended December 31, 2024 and 2023, respectively, in cash distributions to Sinopec.
  • Treasury Stock Activity, Net During 2024, the Company repurchased 9.2 million shares at an average price of $26.83 per share totaling $246 million, and as of December 31, 2024, the Company had remaining authorization to repurchase 34.8 million shares.
  • During 2023, the Company repurchased 8.7 million shares at an average price of $37.81 per share totaling $329 million.
  • Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2024 2023 (In millions) Cash and cash equivalents $ 625 $ 87 Total debt – APA and Apache 6,044 5,188 Total equity 6,362 3,691 Available committed borrowing capacity under syndicated credit facilities 2,966 2,894 Cash and Cash Equivalents As of December 31, 2024, the Company had $625 million in cash and cash equivalents.
  • Debt As of December 31, 2024, the Company had $6.0 billion in total debt outstanding, which consisted of notes and debentures of Apache, credit facility borrowings, and finance lease obligations.
  • As of December 31, 2024, current debt included $53 million of finance lease obligations.
  • Unsecured 2022 Committed Bank Credit Facilities On April 29, 2022, the Company entered into two unsecured syndicated credit agreements for general corporate purposes that remained in effect as of December 31, 2024, but were replaced on January 15, 2025 as detailed below under “Subsequent Event — Unsecured 2025 Committed Bank Credit Facilities.” As of December 31, 2024: • One agreement was denominated in US dollars (the 2022 USD Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of US$1.8 billion (including a letter of credit subfacility of up to US$750 million, of which US$150 million was committed). • The second agreement was denominated in pounds sterling (the 2022 GBP Agreement) and provided for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit.
  • As of December 31, 2024, there were $ 10 million of borrowings under the 2022 USD Agreement and an aggregate £ 303 million in letters of credit outstanding under the GBP Agreement.
  • As of December 31, 2024, there were no letters of credit outstanding under the USD Agreement.
  • As of December 31, 2023, there were $ 372 million of borrowings under the 2022 USD Agreement, and an aggregate £ 348 million in letters of credit outstanding under the GBP Agreement.
  • As of December 31, 2023, there were no letters of credit outstanding under the 2022 USD Agreement.
  • The Company was in compliance with the terms of the 2022 Agreements as of December 31, 2024.
  • There is no assurance of the terms upon which potential lenders under future credit facilities will make loans or other extensions of credit available to APA or its subsidiaries or the composition of such lenders.
  • There is no assurance that the financial condition of banks with lending commitments to APA or its subsidiaries will not deteriorate.
  • The Company closely monitors the ratings of the banks in its bank groups.
  • Having large bank groups allows the Company to mitigate the potential impact of any bank’s failure to honor its lending commitment.
  • As of December 31, 2024 and 2023, there were no outstanding borrowings under these facilities.
  • As of December 31, 2023, there were £ 416 million and $ 2 million in letters of credit outstanding under these facilities.
  • Commercial Paper Program In December 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (the CP Notes) up to a maximum aggregate face amount of $ 1.8 billion outstanding at any time.
  • Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed revolving credit facilities for general corporate purposes, which as of December 31, 2024, included the $ 1.8 billion 2022 USD Agreement.

and 484 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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