Item 1. FINANCIAL STATEMENTS

APA CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

						For the Quarter Ended March 31,
						2026						2025
						(In millions, except per share data)
REVENUES AND OTHER:
Oil, natural gas, and natural gas liquids production revenues						$	1,942					$	2,039
Purchased oil and gas sales						385						597
Total revenues						2,327						2,636
Derivative instrument losses, net						(113)						(28)
Loss on divestitures, net						—						(2)
Other, net						1						6
						2,215						2,612
OPERATING EXPENSES:
Lease operating expenses						362						407
Gathering, processing, and transmission						91						104
Purchased oil and gas costs						75						474
Taxes other than income						57						74
Exploration						26						30
General and administrative						115						98
Transaction, reorganization, and separation						7						37
Depreciation, depletion, and amortization						553						643
Asset retirement obligation accretion						42						39
Financing costs, net						57						(57)
						1,385						1,849
NET INCOME BEFORE INCOME TAXES						830						763
Current income tax provision						302						306
Deferred income tax provision (benefit)						(15)						39
NET INCOME INCLUDING NONCONTROLLING INTERESTS						543						418
Net income attributable to noncontrolling interest						97						71
NET INCOME ATTRIBUTABLE TO COMMON STOCK						$	446					$	347
NET INCOME PER COMMON SHARE:
Basic						$	1.26					$	0.96
Diluted						$	1.26					$	0.96
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic						354						364
Diluted						354						364

The accompanying notes to consolidated financial statements are an integral part of this statement.

APA CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

(Unaudited)

						For the Quarter Ended March 31,
						2026						2025
						(In millions)
NET INCOME INCLUDING NONCONTROLLING INTERESTS						$	543					$	418
COMPREHENSIVE INCOME INCLUDING NONCONTROLLING INTERESTS						543						418
Comprehensive income attributable to noncontrolling interest						97						71
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCK						$	446					$	347

The accompanying notes to consolidated financial statements are an integral part of this statement.

APA CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED CASH FLOWS

(Unaudited)

						For the Three Months Ended March 31,
						2026						2025
						(In millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including noncontrolling interests						$	543					$	418
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized derivative instrument losses, net						47						28
Loss on divestitures, net						—						2
Exploratory dry hole expense and unproved leasehold impairments						12						11
Depreciation, depletion, and amortization						553						643
Asset retirement obligation accretion						42						39
Provision for (benefit from) deferred income taxes						(15)						39
Gain on extinguishment of debt						—						(142)
Other, net						9						13
Changes in operating assets and liabilities:
Receivables						(391)						128
Inventories						1						14
Drilling advances and other current assets						(7)						241
Deferred charges and other long-term assets						6						1
Accounts payable						(71)						(122)
Accrued expenses						(163)						(198)
Deferred credits and noncurrent liabilities						(12)						(19)
NET CASH PROVIDED BY OPERATING ACTIVITIES						554						1,096
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to upstream oil and gas property						(542)						(777)
Leasehold and property acquisitions						(4)						(13)
Other, net						4						4
NET CASH USED IN INVESTING ACTIVITIES						(542)						(786)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from commercial paper and revolving credit facilities, net						—						433
Payments on term loan facility						—						(900)
Fixed-rate debt borrowings						—						846
Payments on fixed-rate debt						(79)						(905)
Distributions to noncontrolling interest						(65)						(126)
Treasury stock activity, net						—						(100)
Dividends paid to APA common stockholders						(88)						(91)
Other, net						(3)						(25)
NET CASH USED IN FINANCING ACTIVITIES						(235)						(868)
NET DECREASE IN CASH AND CASH EQUIVALENTS						(223)						(558)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR						516						625
CASH AND CASH EQUIVALENTS AT END OF PERIOD						$	293					$	67
SUPPLEMENTARY CASH FLOW DATA:
Interest paid, net of capitalized interest						$	88					$	118
Income taxes paid, net of refunds						280						296

The accompanying notes to consolidated financial statements are an integral part of this statement.

APA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)

						March 31, 2026						December 31, 2025
						(In millions, except share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents						$	293					$	516
Receivables, net of allowance of $137 and $140						1,456						1,062
Other current assets (Note 5)						540						543
						2,289						2,121
PROPERTY AND EQUIPMENT:
Oil and gas properties						46,139						45,507
Gathering, processing, and transmission facilities						445						445
Other						532						536
Less: Accumulated depreciation, depletion, and amortization						(34,292)						(33,740)
						12,824						12,748
OTHER ASSETS:
Decommissioning security for sold Gulf of America properties (Note 10)						21						21
Deferred tax asset (Note 9)						2,343						2,328
Deferred charges and other						602						543
						$	18,079					$	17,761
LIABILITIES, NONCONTROLLING INTERESTS, AND EQUITY
CURRENT LIABILITIES:
Accounts payable						$	798					$	871
Current debt						134						213
Other current liabilities (Note 6)						1,559						1,487
						2,491						2,571
LONG-TERM DEBT (Note 8)						4,280						4,280
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Asset retirement obligation (Note 7)						2,699						2,699
Decommissioning contingency for sold Gulf of America properties (Note 10)						748						782
Other						463						426
						3,910						3,907
EQUITY:
Common stock, $0.625 par, 860,000,000 shares authorized, 492,518,076 and 492,038,127 shares issued, respectively						308						308
Paid-in capital						12,733						12,816
Accumulated deficit						(275)						(721)
Treasury stock, at cost, 139,073,481 and 139,073,481 shares, respectively						(6,320)						(6,320)
Accumulated other comprehensive income						10						10
APA SHAREHOLDERS’ EQUITY						6,456						6,093
Noncontrolling interest						942						910
TOTAL EQUITY						7,398						7,003
						$	18,079					$	17,761

The accompanying notes to consolidated financial statements are an integral part of this statement.

APA CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AND NONCONTROLLING INTERESTS

(Unaudited)

						Common Stock						Paid-In Capital						Accumulated Deficit						Treasury Stock						Accumulated Other Comprehensive Income						APA SHAREHOLDERS’ EQUITY						Noncontrolling Interest						TOTAL EQUITY
						(In millions)
For the Quarter Ended March 31, 2025
Balance at December 31, 2024						$	307					$	13,153					$	(2,155)					$	(6,037)					$	12					$	5,280					$	1,082					$	6,362
Net income attributable to common stock						—						—						347						—						—						347						—						347
Net income attributable to noncontrolling interest						—						—						—						—						—						—						71						71
Distributions to noncontrolling interest						—						—						—						—						—						—						(126)						(126)
Common dividends declared ($0.25 per share)						—						(91)						—						—						—						(91)						—						(91)
Treasury stock activity, net						—						—						—						(101)						—						(101)						—						(101)
Other						—						1						—						—						—						1						—						1
Balance at March 31, 2025						$	307					$	13,063					$	(1,808)					$	(6,138)					$	12					$	5,436					$	1,027					$	6,463
For the Quarter Ended March 31, 2026
Balance at December 31, 2025						$	308					$	12,816					$	(721)					$	(6,320)					$	10					$	6,093					$	910					$	7,003
Net income attributable to common stock						—						—						446						—						—						446						—						446
Net income attributable to noncontrolling interest						—						—						—						—						—						—						97						97
Distributions to noncontrolling interest						—						—						—						—						—						—						(65)						(65)
Common dividends declared ($0.25 per share)						—						(88)						—						—						—						(88)						—						(88)
Treasury stock activity, net						—						—						—						—						—						—						—						—
Other						—						5						—						—						—						5						—						5
Balance at March 31, 2026						$	308					$	12,733					$	(275)					$	(6,320)					$	10					$	6,456					$	942					$	7,398

The accompanying notes to consolidated financial statements are an integral part of this statement.

APA CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

These consolidated financial statements have been prepared by APA Corporation (APA or the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods, on a basis consistent with the annual audited financial statements, with the exception of any recently adopted accounting pronouncements. All such adjustments are of a normal recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10-Q should be read along with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which contains a summary of the Company’s significant accounting policies and other disclosures.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As of March 31, 2026, the Company's significant accounting policies are consistent with those discussed in Note 1—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The Company’s financial statements for prior periods may include reclassifications that were made to conform to the current-year presentation.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of APA and its subsidiaries after elimination of intercompany balances and transactions.

The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions.

Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in the Company’s consolidated Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate noncontrolling interest component of equity in the Company’s consolidated balance sheet. The Company has determined that a limited partnership and APA subsidiary, which has control over APA’s Egyptian operations, qualifies as a variable interest entity (VIE). Apache consolidates the activities of APA’s Egyptian operations because it has concluded that a wholly owned subsidiary has a controlling financial interest in APA’s Egyptian operations and was determined to be the primary beneficiary of the VIE.

Use of Estimates

Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements, and changes in these estimates are recorded when known.

Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (refer to “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities, the assessment of asset retirement obligations (refer to Note 7—Asset Retirement Obligation), the estimate of income taxes (refer to Note 9—Income Taxes), the estimation of the contingent liability representing Apache’s potential decommissioning obligations on sold properties in the Gulf of America (refer to Note 10—Commitments and Contingencies), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom.

Fair Value Measurements

Certain assets and liabilities are reported at fair value on a recurring basis in the Company’s consolidated balance sheet. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority.

The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).

Refer to Note 4—Derivative Instruments and Hedging Activities and Note 8—Debt and Financing Costs for further detail regarding the Company’s fair value measurements recorded on a recurring basis.

The Company also uses fair value measurements on a nonrecurring basis when certain qualitative assessments of its assets indicate a potential impairment or when allocating the purchase price for acquired assets and liabilities in a business combination. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature and maturities of these instruments.

During each of the quarters ended March 31, 2026 and March 31, 2025, the Company recorded no asset impairments in connection with fair value assessments.

Revenue Recognition

Receivables from contracts with customers, including receivables for purchased oil and gas sales and net of allowance for credit losses, were $1.2 billion and $826 million as of March 31, 2026 and December 31, 2025, respectively. Payments under all contracts with customers are typically due and received within a short-term period of one year or less, after physical delivery of the product or service has been rendered. The Company monitors its receivable balance and exposure as part of its ongoing credit risk management process.

Oil and gas production revenues include income taxes that will be paid to the Arab Republic of Egypt by Egypt General Petroleum Corporation on behalf of the Company. Revenue and associated expenses related to such tax volumes are recorded as “Oil, natural gas, and natural gas liquids production revenues” and “Current income tax provision,” respectively, in the Company’s statement of consolidated operations.

Refer to Note 12—Business Segment Information for a disaggregation of oil, natural gas, and natural gas liquids production revenue by product and reporting segment.

In accordance with the provisions of ASC 606, “Revenue from Contracts with Customers,” variable market prices for each short-term commodity sale are allocated entirely to each performance obligation as the terms of payment relate specifically to the Company’s efforts to satisfy its obligations. As such, the Company has elected the practical expedients available under the standard to not disclose the aggregate transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations as of the end of the reporting period.

Inventories

Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value. No inventory impairments were recognized in either of the quarters ended March 31, 2026 and March 31, 2025.

Property and Equipment

The carrying value of the Company’s property and equipment represents the cost incurred to acquire the property and equipment, including capitalized interest, net of any impairments. For business combinations and acquisitions, property and equipment cost is based on the fair values at the acquisition date.

Oil and Gas Property

The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs, production costs, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities, and if management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed.

Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties.

When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on the Company’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. The Company recorded no proved oil and gas property impairments during either of the quarters ended March 31, 2026 and March 31, 2025.

Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations. Losses on divestitures of the Company’s oil and gas properties are recognized under “Loss on divestitures, net” in the statement of consolidated operations upon closing of the transaction.

Transaction, Reorganization, and Separation (TRS)

The Company recorded $7 million and $37 million of TRS costs during the quarters ended March 31, 2026 and March 31, 2025, respectively. TRS costs incurred in the first quarters of 2026 and 2025 comprised primarily employee separations, organization restructuring, and other cost-saving initiatives.

New Pronouncements Issued But Not Yet Adopted

There were no changes in recently issued or adopted accounting standards from those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 that would have an expected material effect on the Company.

2. ACQUISITIONS AND DIVESTITURES

2026 Activity

Leasehold and Property Acquisitions

During the first quarter of 2026, the Company completed leasehold acquisitions, primarily in the Permian Basin, for aggregate cash consideration of approximately $4 million.

2025 Activity

Leasehold and Property Acquisitions

During the first quarter of 2025, the Company completed leasehold acquisitions, primarily in the Permian Basin, for aggregate cash consideration of approximately $13 million.

3. CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $344 million and $338 million as of March 31, 2026 and December 31, 2025, respectively. The increase is attributable to additional drilling activity partially offset by successful transfer of well costs in Egypt. No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2025 were charged to dry hole expense during the first quarter of 2026. Similarly, during the first quarter of 2025, no such costs were charged to dry hole expense.

Projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether proved reserves can be attributed to these projects.

4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Objectives and Strategies

The Company is exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production, as well as fluctuations in exchange rates in connection with transactions denominated in foreign currencies. The Company manages the variability in its cash flows by occasionally entering into derivative transactions on a portion of its crude oil and natural gas production and foreign currency transactions. The Company utilizes various types of derivative financial instruments, including forward contracts, futures contracts, swaps, and options, to manage fluctuations in cash flows resulting from changes in commodity prices or foreign currency values. The Company has elected not to designate any of its derivative contracts as cash flow hedges.

Counterparty Risk

The use of derivative instruments exposes the Company to credit loss in the event of nonperformance by the counterparty. To reduce the concentration of exposure to any individual counterparty, the Company utilizes a diversified group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. As of March 31, 2026, the Company had derivative positions with 11 counterparties. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments resulting from lower commodity prices.

Derivative Instruments

Commodity Derivative Instruments

As of March 31, 2026, the Company had the following open natural gas financial basis swap contracts:

												Basis Swap Purchased												Basis Swap Sold
Production Period						Settlement Index						MMBtu (in 000’s)						Weighted Average Price Differential						MMBtu (in 000’s)						Weighted Average Price Differential
April—December 2026						NYMEX Henry Hub/IF Waha						67,375						$(1.96)						—						—

Foreign Currency Derivative Instruments

The Company has open foreign currency costless collar contracts in GBP/USD for £12 million per each calendar month for 2026, with a weighted average floor and ceiling price of $1.32 and $1.40 per GBP, respectively.

Fair Value Measurements

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

						Fair Value Measurements Using
						Quoted Price in Active Markets (Level 1)						Significant Other Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total Fair Value						Netting**(1)**						Carrying Amount
						(In millions)
March 31, 2026
Liabilities:
Commodity derivative instruments						$	—					$	122					$	—					$	122					$	—					$	122
Foreign currency derivative instruments						—						2						—						2						—						2
December 31, 2025
Liabilities:
Commodity derivative instruments						—						77						—						77						—						77

(1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

The fair values of the Company’s derivative instruments are not actively quoted in the open market. The Company primarily uses a market approach to estimate the fair values of these derivatives on a recurring basis, utilizing futures pricing for the underlying positions provided by a reputable third party, a Level 2 fair value measurement.

Derivative Activity Recorded in the Consolidated Balance Sheet

All derivative instruments are reflected as either assets or liabilities at fair value in the consolidated balance sheet. These fair values are recorded by netting asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. The carrying value of the Company’s derivative assets and/or liabilities and their locations on the consolidated balance sheet are as follows:

						March 31, 2026						December 31, 2025
						(In millions)
Current Liabilities: Other current liabilities						$	124					$	77
Total derivative liabilities						$	124					$	77

Derivative Activity Recorded in the Statement of Consolidated Operations

The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations:

						For the Quarter Ended March 31,
			2026						2025
						(In millions)
Realized:
Commodity derivative instruments						$	(66)					$	—
Realized losses, net						(66)						—
Unrealized:
Commodity derivative instruments						(45)						(28)
Foreign currency derivative instruments						(2)						—
Unrealized losses, net						(47)						(28)
Derivative instrument losses, net						$	(113)					$	(28)

Derivative instrument losses are recorded in “Derivative instrument losses, net” under “Revenues and Other” in the Company’s statement of consolidated operations. Unrealized losses for derivative activity recorded in the statement of consolidated operations are reflected in the statement of consolidated cash flows separately as “Unrealized derivative instrument losses, net” under “Adjustments to reconcile net income to net cash provided by operating activities.”

5. OTHER CURRENT ASSETS

The following table provides detail of the Company’s other current assets:

						March 31, 2026						December 31, 2025
						(In millions)
Inventories						$	334					$	351
Drilling advances						92						93
Current decommissioning security for sold Gulf of America assets						20						19
Prepaid assets and other						94						80
Total Other current assets						$	540					$	543

6. OTHER CURRENT LIABILITIES

The following table provides detail of the Company’s other current liabilities:

						March 31, 2026						December 31, 2025
						(In millions)
Accrued operating expenses						$	131					$	129
Accrued exploration and development						369						289
Accrued compensation and benefits						166						265
Accrued interest						54						88
Accrued income taxes						129						112
Current asset retirement obligation						207						181
Current operating lease liability						122						97
Current decommissioning contingency for sold Gulf of America properties						130						99
Other						251						227
Total Other current liabilities						$	1,559					$	1,487

7. ASSET RETIREMENT OBLIGATION

The following table describes changes to the Company’s asset retirement obligation (ARO) liability:

						March 31, 2026
						(In millions)
Asset retirement obligation, December 31, 2025						$	2,880
Liabilities incurred						4
Liabilities settled						(22)
Accretion expense						42
Revisions in estimated liabilities						2
Asset retirement obligation, March 31, 2026						2,906
Less current portion						(207)
Asset retirement obligation, long-term						$	2,699

8. DEBT AND FINANCING COSTS

The following table presents the carrying values of the Company’s debt:

						March 31, 2026						December 31, 2025
						(In millions)
APA notes and debentures before unamortized discount and debt issuance costs(1)						$	3,521					$	3,579
Apache notes and debentures before unamortized discount and debt issuance costs(2)						911						932
Apache finance lease obligations						27						28
Unamortized discount						(22)						(23)
Debt issuance costs						(23)						(23)
Total debt						4,414						4,493
Current maturities						(134)						(213)
Long-term debt						$	4,280					$	4,280

(1) The fair values of the APA notes and debentures were $3.4 billion as of each of March 31, 2026 and December 31, 2025.

(2) The fair values of the Apache notes and debentures were $851 million and $881 million as of March 31, 2026 and December 31, 2025, respectively. The Company uses a market approach to determine the fair values of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).

At each of March 31, 2026 and December 31, 2025, current debt included $2 million of finance lease obligations.

Financing Costs, Net

The following table presents the components of the Company’s financing costs, net:

						For the Quarter Ended March 31,
						2026						2025
						(In millions)
Interest expense						$	70					$	91
Amortization of debt issuance costs						1						2
Capitalized interest						(14)						(4)
Gain on extinguishment of debt						—						(142)
Interest income						—						(4)
Financing costs, net						$	57					$	(57)

Indenture Debt Activity

On March 15, 2026, APA and Apache repaid in cash on maturity the outstanding $79 million aggregate principal amount of their respective 7.70% Notes due 2026, plus accrued and unpaid interest to the maturity date.

On January 10, 2025, APA settled its private exchange and cash tender offers for certain notes and debentures issued by Apache under its indentures. In settling these offers pursuant to their respective terms, 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.

During the quarter ended March 31, 2025, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $55 million for an aggregate purchase price of $50 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $7 million. The Company recognized a $7 million gain on these repurchases. The repurchases were partially financed by APA’s borrowing under the Company’s commercial paper program.

Committed 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 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). APA may increase commitments up to an aggregate US$2.5 billion by adding new lenders or obtaining the consent of any increasing existing lenders. This facility matures in January 2030, subject to the Company’s two, one-year extension options.

• The second agreement is denominated in pounds sterling (the GBP Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit. This facility matures in January 2030, subject to the Company’s two, one-year extension options.

As of March 31, 2026, there were no borrowings or letters of credit outstanding under the USD Agreement or the GBP Agreement. As of December 31, 2025, there were no borrowings or letters of credit outstanding under the USD Agreement and no borrowings and an aggregate £1.0 million in letters of credit outstanding under the GBP Agreement.

Uncommitted Lines of Credit

Each of the Company and Apache, from time to time, has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of March 31, 2026 and December 31, 2025, there were no outstanding borrowings under these facilities. As of March 31, 2026, there were £567 million and $10 million in letters of credit outstanding under these facilities. As of December 31, 2025, there were £901 million and $10 million in letters of credit outstanding under these facilities.

Commercial Paper Program

The Company has 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 (CP Notes) up to a maximum aggregate face amount of $2.0 billion outstanding at any time. The maturities of CP Notes may vary but may not exceed 397 days from the date of issuance. Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed revolving credit facilities for general corporate purposes, which as of March 31, 2026, included the $2.0 billion USD Agreement.

The CP Notes are sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance.

As of each of March 31, 2026 and December 31, 2025, the Company had no CP Notes outstanding.

Subsequent Events—Indenture Debt Activity

On April 6, 2026, APA and Apache fully redeemed their respective 4.875% Notes due 2027 and 4.375% Notes due 2028. Note holders were paid an aggregate $425 million in cash (comprised of outstanding principal amounts and make-whole premiums), plus accrued and unpaid interest to the redemption date.

On April 15, 2026, APA and Apache repaid in cash on maturity the outstanding $132 million aggregate principal amount of their respective 7.95% Notes due 2026, plus accrued and unpaid interest to the maturity date.

9. INCOME TAXES

The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Non-cash impairments on the carrying value of the Company’s oil and gas properties, gains and losses on the sale of assets, statutory tax rate changes, and other significant or unusual items are recognized as discrete items in the quarter in which they occur.

The Company’s effective income tax rate for the three months ended March 31, 2026 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations. The Company’s effective income tax rate for the three months ended March 31, 2025 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations and a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2025 on March 20, 2025.

On March 20, 2025, Finance Act 2025 was enacted, receiving Royal Assent, and included amendments to the Energy (Oil and Gas) Profits Levy Act of 2022, increasing the levy from a 35 percent rate to a 38 percent rate, among other changes, effective for the period of November 1, 2024 through March 31, 2030.

On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act of 2025 (OBBBA). Among other changes, the OBBBA expanded and made permanent 100 percent bonus depreciation for eligible assets acquired and placed in service after January 19, 2025, and aligned the treatment of intangible drilling costs for corporate alternative minimum tax (CAMT) purposes with regular tax treatment starting in 2026. The Company does not expect the OBBBA to have a material impact on total tax expense for the year ended December 31, 2026, as impacts to current tax expense are offset by impacts to deferred tax expense.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various states and foreign jurisdictions. The Company’s tax reserves are related to tax years that may be subject to examination by the relevant taxing authority.

10. COMMITMENTS AND CONTINGENCIES

Legal Matters

The Company is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls, which also may include controls related to the potential impacts of climate change. As of March 31, 2026, the Company has an accrued liability of approximately $27 million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. The Company’s estimates are based on information known about the matters and its experience in contesting, litigating, and settling similar matters. Although actual amounts could differ from management’s estimate, none of the actions are believed by management to involve future amounts that would be material to the Company’s financial position, results of operations, or liquidity after consideration of recorded accruals. With respect to material matters for which the Company believes an unfavorable outcome is reasonably possible, the Company has disclosed the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. It is management’s opinion that the loss for any other litigation matters and claims that are reasonably possible to occur will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity.

For additional information on Legal Matters described below, refer to Note 10—Commitments and Contingencies to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Australian Operations Divestiture Dispute

Pursuant to a Sale and Purchase Agreement dated April 9, 2015 (Quadrant SPA), the Company and its subsidiaries divested Australian operations to Quadrant Energy Pty Ltd (Quadrant). Closing occurred on June 5, 2015. In April 2017, the Company filed suit against Quadrant for breach of the Quadrant SPA. In its suit, the Company seeks approximately AUD $80 million. In December 2017, Quadrant filed a defense of equitable set-off to the Company’s claim and a counterclaim seeking approximately AUD $200 million in the aggregate. In 2018, Quadrant was acquired by Australian oil and gas company Santos, Ltd., who assumed Quadrant’s place in the ongoing litigation. In early 2025, Santos amended the pending counterclaims to abandon a number of claims that had been asserted against the Company but maintaining counterclaims for approximately AUD $57 million. Santos then filed a new lawsuit in the Supreme Court of Western Australia contending that it may be liable to the Australian Taxation Office for assessments, penalties, and interest related to the 2014 and 2015 tax years of approximately AUD $133 million and asserting that, if such amounts must be paid, the Company is liable to Santos for those amounts under the Quadrant SPA. All lawsuits related to the Quadrant SPA have now been consolidated into the same proceeding. The Company will vigorously prosecute its claim while vigorously defending against any counterclaims.

Delaware Litigation

On September 10, 2020, the State of Delaware filed suit, individually and on behalf of the people of the State of Delaware, against over 25 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. The Company is vigorously defending the suit.

Environmental Matters

As of March 31, 2026, the Company had an undiscounted reserve for environmental remediation of approximately $2 million.

The Company is not aware of any environmental claims existing as of March 31, 2026, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company’s properties.

Potential Decommissioning Obligations on Sold Properties

In 2013, Apache sold its Gulf of America (GOA) Shelf operations and properties and its GOA operating subsidiary, GOM Shelf LLC (GOM Shelf) to Fieldwood Energy LLC (Fieldwood). Fieldwood assumed the obligation to decommission the properties held by GOM Shelf and the properties acquired from Apache and its other subsidiaries (collectively, the Legacy GOA Assets). On February 14, 2018, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection. On August 3, 2020, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection for a second time. Upon emergence from this second bankruptcy, the Legacy GOA Assets were separated into a standalone company, which was subsequently merged into GOM Shelf. Under GOM Shelf’s limited liability company agreement, the proceeds of production of the Legacy GOA Assets are to be used to fund the operation of GOM Shelf and the decommissioning of Legacy GOA Assets. The decommissioning obligations for the Legacy GOA Assets are partially secured by a trust account of which Apache is a beneficiary and which is funded by net profits interests (NPIs) depending on future oil prices. In addition, as part of the resolution of Fieldwood’s second bankruptcy, Apache agreed to loan GOM Shelf up to $400 million to perform decommissioning, with such loans extended from time to time and when funds in the trust account are exhausted. Such loans and related obligations are secured by first and prior liens on the Legacy GOA Assets.

By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) that it was unable to fund the decommissioning obligations that it was obligated to perform on certain of the Legacy GOA Assets. As a result, Apache and other current and former owners in these assets have received orders from BSEE and demands from third parties to decommission certain of the Legacy GOA Assets included in GOM Shelf’s notifications to BSEE. Apache expects to receive similar orders and demands on the other Legacy GOA Assets included in GOM Shelf’s notification letters. Apache has also received orders to decommission other Legacy GOA Assets that were not included in GOM Shelf’s notification letters. Further, Apache anticipates that GOM Shelf may send additional such notices to BSEE in the future and that it may receive additional orders from BSEE requiring it to decommission other Legacy GOA Assets.

As of March 31, 2026, the Company recorded an asset of $41 million representing the remaining amount the Company expects to be reimbursed from security related to these decommissioning costs.

The Company has also recorded contingent liabilities in the amounts of $878 million and $881 million for the periods ended March 31, 2026 and December 31, 2025, respectively, representing the estimated costs of decommissioning it may be required to perform on the Legacy GOA Assets. There have been no other changes in estimates from December 31, 2025 that would have a material impact on the Company’s financial position, results of operations, or liquidity.

11. CAPITAL STOCK

Net Income per Common Share

The following table presents a reconciliation of the components of basic and diluted net income per common share in the consolidated financial statements:

						For the Quarter Ended March 31,
						2026																		2025
						Income						Shares						Per Share						Income						Shares						Per Share
						(In millions, except per share amounts)
Basic:
Income attributable to common stock						$	446					354						$	1.26					$	347					364						$	0.96
Diluted:
Income attributable to common stock						$	446					354						$	1.26					$	347					364						$	0.96

The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive of 2.8 million and 3.6 million during the first quarters of 2026 and 2025, respectively.

Stock Repurchase Program

The Company did not purchase any shares during the first quarter of 2026. As of March 31, 2026, the Company had remaining authorization to repurchase up to 21.9 million shares. In the first quarter of 2025, the Company repurchased 4.4 million shares at an average price of $22.87 per share.

The Company is not obligated to acquire any additional shares. Shares may be purchased either in the open market or through privately negotiated transactions.

Common Stock Dividend

For the quarters ended March 31, 2026 and March 31, 2025, the Company paid $88 million and $91 million, respectively, in dividends on its common stock.

12. BUSINESS SEGMENT INFORMATION

As of March 31, 2026, the Company’s consolidated subsidiaries are engaged in exploration, development, and/or production across four operating segments: the U.S., Egypt, North Sea, and Suriname. The Company’s business explores for, develops, and produces crude oil, natural gas, and natural gas liquids. The Company also has exploration interests in Alaska, Uruguay, and other international locations that may, over time, result in reportable discoveries and development opportunities.

The Chief Operating Decision Maker (CODM) is a function (not necessarily an individual) that allocates the resources of the reporting entity and assesses the performance of its segments. Decisions to assess performance and allocate resources are made by the Company’s Chief Executive Officer (CEO), Mr. John J. Christmann, IV. Therefore, management has concluded that the CEO of the Company is the CODM. The information regularly reviewed by the CODM to assess performance and allocate resources is primarily associated with operating income from each segment and the resulting free cash flow, amongst other metrics. The Company concluded that the most comparable measure under U.S. GAAP is operating income.

Financial information for each segment is presented below:

						U.S.						Egypt**(1)(3)**						North Sea						Intersegment Eliminations & Other**(2)**						Total**(3)**
For the Quarter Ended March 31, 2026						(In millions)
Revenues:
Oil revenues						$	809					$	671					$	164					$	—					$	1,644
Natural gas revenues						(12)						138						31						—						157
Natural gas liquids revenues						129						—						12						—						141
Oil, natural gas, and natural gas liquids production revenues						926						809						207						—						1,942
Purchased oil and gas sales						385						—						—						—						385
Realized losses on commodity derivative instruments						(66)						—						—						—						(66)
						1,245						809						207						—						2,261
Operating Expenses:
Lease operating expenses(4)						170						110						82						—						362
Gathering, processing, and transmission(4)						68						8						15						—						91
Purchased oil and gas costs						75						—						—						—						75
Taxes other than income(4)						57						—						—						—						57
Exploration(5)						3						19						1						3						26
Depreciation, depletion, and amortization(5)						342						151						60						—						553
Asset retirement obligation accretion						11						—						31						—						42
						726						288						189						3						1,206
Operating Income (Loss)						$	519					$	521					$	18					$	(3)					1,055
Other Income (Expense):
Unrealized losses on derivative instruments																														(47)
Other, net																														1
General and administrative																														(115)
Transaction, reorganization, and separation																														(7)
Financing costs, net																														(57)
Income Before Income Taxes																														$	830
Total Assets(6)						$	12,593					$	3,159					$	1,306					$	1,021					$	18,079

						U.S.						Egypt**(1)(3)**						North Sea						Intersegment Eliminations & Other**(2)**						Total**(3)**
For the Quarter Ended March 31, 2025						(In millions)
Revenues:
Oil revenues						$	816					$	582					$	202					$	—					$	1,600
Natural gas revenues						104						91						38						—						233
Natural gas liquids revenues						196						—						10						—						206
Oil, natural gas, and natural gas liquids production revenues						1,116						673						250						—						2,039
Purchased oil and gas sales						597						—						—						—						597
						1,713						673						250						—						2,636
Operating Expenses:
Lease operating expenses(4)						200						110						97						—						407
Gathering, processing, and transmission(4)						85						5						14						—						104
Purchased oil and gas costs						474						—						—						—						474
Taxes other than income(4)						74						—						—						—						74
Exploration(5)						2						20						1						7						30
Depreciation, depletion, and amortization(4)						419						153						71						—						643
Asset retirement obligation accretion						10						—						29						—						39
						1,264						288						212						7						1,771
Operating Income (Loss)						$	449					$	385					$	38					$	(7)					865
Other Income (Expense):
Unrealized losses on commodity derivative instruments																														(28)
Loss on divestitures, net																														(2)
Other, net																														6
General and administrative																														(98)
Transaction, reorganization, and separation																														(37)
Financing costs, net																														57
Income Before Income Taxes																														$	763
Total Assets(6)						$	13,136					$	3,441					$	1,252					$	702					$	18,531

(1)Includes oil and gas production revenue that will be paid as taxes by EGPC on behalf of the Company for the quarters ended March 31, 2026 and March 31, 2025 of:

						For the Quarter Ended March 31,
						2026						2025
						(In millions)
Oil						$	192					$	151
Natural gas						40						24

(2)Includes Suriname operating expenses as the operating segment has not met the quantitative thresholds to be separately reported.

(3)Includes noncontrolling interests in Egypt.

(4)Represents significant segment expense categories that align with the segment-level information that is regularly provided to the CODM. The remaining expenses that comprise the Operating Income (Loss) amount by segment are deemed to be other segment expense categories necessary to arrive at the segment profit or loss.

(5)Exploration expense under Intersegment Eliminations & Other primarily reflects the Company’s Suriname exploration activities.

(6)Intercompany balances are excluded from total assets.