APA Corporation Q4 FY2025 earnings call

• 2025 was highly successful with progress against strategic priorities and strong execution. They reduced controllable spend by over $300 million in 2025, exceeding the target and expecting to exit 2026 at a $450 million run rate. - In the Permian, they high - graded the asset base, improved cost structure, and refined the development approach. There are 1700 locations in economic inventory and 1700 additional locations in technical upside. - In Egypt, focused gas activity under new pricing framework drove growth, and they withdrew from a non - core concession. - In Suriname, allocated $230 million for Grand Morgue development. - In exploration, $70 million was invested, including prep work in Alaska and return to exploration drilling in Suriname Block 58. - 2025 approved reserves increased ~9% year - over - year, surpassing 1 billion barrels of oil equivalent, and all - in reserve replacement ratio exceeded 160%.

In 2025, APA had strong performance across segments. In the Permian, it exceeded oil production guidance every quarter with a lower - than - planned capital budget. Drilling and completion costs per lateral foot were $595 in the Midland Basin and $750 in the Delaware Basin. In Egypt, focused activity under the new gas pricing framework drove production growth, with gross gas production in the fourth quarter being 501 million cubic feet per day (but below guidance due to pipeline disruptions). In Suriname, the partner Total continued to execute towards a mid - 2028 first oil date. In Alaska, the sockeye discovery confirmed prospectivity. For full year 2025, free cash flow was over $1 billion, and net debt ended below $4 billion. Revenue contribution details: Permian was the largest source of production and free cash flow, Egypt's gas - weighted activity was becoming a key value driver, Suriname and Alaska were in development phases.

• In the United States, $1.3 billion capital program to maintain relatively flat oil production at ~120,000 - 122,000 barrels per day despite first - quarter weather - related downtime. - In Egypt, ~$500 million investment to slightly grow BOE production, with gross oil production expected to decline slightly and gas volumes growing. - For Grand Morgue in Suriname, ~$230 million capital allocation. - Exploration: ~$70 million investment, including return to exploration drilling in Suriname Block 58 in fourth quarter and planning for Alaska drilling season in 2027. Total portfolio spend $2.1 billion, ~10% lower than last year.

• In Egypt, unplanned temporary pipeline disruptions in the fourth quarter affected gas production. - Commodity price movements could impact portfolio spend and flexibility. - Weather - related downtime in the Permian first quarter can affect production and guidance. - Subsurface or completion - related risks in prospective leads in exploration.

Q: Doug Leggett asked about Permian CapEx guidance, nature of $100 million spend, LOE impact, and exploration in Alaska, Suriname.

A: $70 million in exploration budget, 20 for Alaska prep, 50 for Suriname exploration in fourth quarter. $100 million LOE spend has multiple purposes including reducing LOE, improving uptime, and moving inventory.

Q: John Freeman asked about U.S. oil volume beat breakdown and DNC per foot.

A: Fourth quarter had virtually no weather downtime, tills came in earlier, and runtime improved, roughly one - third each. DNC per foot continues to improve.

Q: Neil Dingman asked about Permian inventory sensitivity and Suriname capital.

A: Economic inventory has 1700 gross locations with 10% return, technical upside has 1700 additional locations. $230 million in Suriname is for Grand Morgue development.

Q: Bob Brackett asked about Egypt exploration philosophy.

A: Regional approach in gas exploration, reprocessing seismic, building inventory.

Q: Michael Ciala asked about Permian inventory test impact and Suriname development drilling.

A: Four - well spacing test in bone spring could move 130 locations from technical to economic inventory. $230 million in Suriname is for Grand Morgue development including drilling.

Q: Scott Hanold asked about Permian spend on technical upside tests and Uruguay exploration.

A: Steady diet of testing in Permian, Uruguay has data room open, looking to farm down.

Q: Josh Silverstein asked about FC capacity, trading benefit trend, and balance sheet.

A: Trading benefit positive for two years out, balance sheet target $3 billion, 60+% of free cash flow to shareholders.

Q: Leo Mariani asked about Permian inventory return definition and Egypt oil decline quantification.

A: 10% return is before tax and full field costs burden, no corporate burden. Egypt's gross oil expected to slightly decline due to more gas drilling