Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion relates to APA Corporation (APA or the Company) and its consolidated subsidiaries and should be read together with the Company’s Consolidated Financial Statements and accompanying notes included in Part I, Item 1—Financial Statements of this Quarterly Report on Form 10-Q, as well as related information set forth in the Company’s Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Overview

APA is an independent energy company that owns subsidiaries that explore for, develop, and produce crude oil, natural gas, and natural gas liquids (NGLs). The Company’s business has oil and gas operations in three geographic areas: the U.S., Egypt, and offshore the U.K. in the North Sea (North Sea). APA also has active development, exploration and appraisal operations ongoing in Suriname, as well as exploration interests in Uruguay, Alaska, and other international locations that may, over time, result in reportable discoveries and development opportunities. As a holding company, APA Corporation’s primary assets are its ownership interests in its consolidated subsidiaries.

APA believes energy underpins global progress, and the Company wants to be a part of the solution as society works to meet growing global demand for reliable and affordable energy. APA strives to meet those challenges while creating value for all its stakeholders.

Uncertainties in the global supply chain and financial markets impact oil supply and demand and contribute to commodity price volatility. These uncertainties include the impacts and duration of armed conflicts involving Iran, Russia, Ukraine, Israel, Lebanon, and Gaza, inflation, current and potential tariffs or other trade barriers, global trade policies, and disputes, and actions taken by foreign oil and gas producing nations, including OPEC+. Despite these uncertainties, the Company is focused on its longer-term objectives: (1) to remain committed to providing affordable, reliable, and responsibly produced energy; (2) to deliver top operational performance across safety, environmental responsibility, execution, and risk management measures; (3) to maintain financial discipline by managing costs, protecting the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (4) to build and grow a diverse and balanced high-quality portfolio with scale through acquisitions, exploration, and organic opportunities.

The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide the Company the ability to timely respond to near-term price volatility and effectively manage its investment programs accordingly. For additional detail on the Company’s forward capital investment outlook, refer to “Capital Resources and Liquidity” below.

In the first quarter of 2026, the Company continued its cost reduction efforts to drive sustainable cost savings for the long-term. The Company remained focused on reducing overhead costs, improving the capital cost structure for its drilling, completions, and facility investments, and driving efficiencies of day-to-day field operating practices. The Company expects an additional $100 million of annualized savings to be achieved by the end of 2026, adding to the $350 million of annualized savings across G&A, LOE, and capital captured during the prior year.

The Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns. The Company believes returning 60 percent of free cash flow through dividends and share repurchases creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of longer-term balance sheet strengthening.

• The Company pays a quarterly dividend of $0.25 per share on its common stock.

• Beginning in the fourth quarter of 2021 and through the end of the first quarter of 2026, the Company has repurchased 98.2 million shares of the Company’s common stock.

• From year-end 2021 through the date of this filing, the Company has repaid $3.6 billion of long-term debt, including $555 million repaid subsequent to the end of the first quarter of 2026.

Financial and Operational Highlights

In the first quarter of 2026, the Company reported net income attributable to common stock of $446 million, or $1.26 per diluted share, compared to net income of $347 million, or $0.96 per diluted share, in the first quarter of 2025. The increase in net income in the first quarter of 2026, compared to the first quarter of 2025, was primarily driven by improved margins on third-party purchased oil and gas activity and lower operating expenses driven by prior year cost savings initiatives.

The Company generated $554 million of cash from operating activities during the first three months of 2026, 49 percent lower than the first three months of 2025. APA’s lower operating cash flows for the first three months of 2026 were primarily driven by the collection of outstanding Egypt receivables in the prior year and timing of other working capital items. The Company paid $88 million in dividends to APA common stockholders during the first three months of 2026. The Company also repaid $79 million of long-term debt that matured during the quarter.

Key operational highlights include:

United States

• Daily boe production from the Company’s U.S. assets, which decreased 11 percent from the first quarter of 2025, accounted for 60 percent of the Company’s worldwide production during the first quarter of 2026. The Company averaged five drilling rigs in the Permian Basin, including four rigs in the Southern Midland Basin and one rig in the Delaware Basin in the first quarter of 2026. The Company brought online 19 operated wells during the quarter. The Company’s core Permian Basin development program continues to represent a key growth area for the U.S. assets.

• APA holds approximately 750,000 MMBtu/d of firm capacity on various pipelines in the Permian Basin. As of March 31, 2026, the Company had open basis swap contracts which purchased Waha and sold NYMEX Henry Hub on approximately one-third of its firm transport capacity for 2026, thereby locking in a significant portion of cash flows associated with its gas marketing activities for the near term. Refer to Note 4—Derivative Instruments and Hedging Activities for further discussion of these basis swap agreements.

International

• In Egypt, the Company averaged 12 drilling rigs and drilled 16 new productive wells during the first quarter of 2026. The Company also averaged 20 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency. First quarter 2026 gross and net production from the Company’s Egypt assets increased 2 percent and 8 percent, respectively, from the first quarter of 2025.

• In Egypt, following the success of the 2025 gas program, the Company expects approximately one-half of its rig activities to be gas-focused and anticipates continued strong performance for the rest of the year, with realized gas prices increasing through the period.

Results of Operations

Oil, Natural Gas, and Natural Gas Liquids Production Revenues

Revenue

The Company’s production revenues and respective contribution to total revenues by country were as follows:

						For the Quarter Ended March 31,
						2026												2025
						$ Value						% Contribution						$ Value						% Contribution
						($ in millions)
Oil Revenues:
United States						$	809					49		%				$	816					51		%
Egypt(1)						671						41		%				582						36		%
North Sea						164						10		%				202						13		%
Total(1)						$	1,644					100		%				$	1,600					100		%
Natural Gas Revenues:
United States						$	(12)					(8)		%				$	104					45		%
Egypt(1)						138						88		%				91						39		%
North Sea						31						20		%				38						16		%
Total(1)						$	157					100		%				$	233					100		%
NGL Revenues:
United States						$	129					91		%				$	196					95		%
North Sea						12						9		%				10						5		%
Total(1)						$	141					100		%				$	206					100		%
Oil and Gas Revenues:
United States						$	926					48		%				$	1,116					55		%
Egypt(1)						809						41		%				673						33		%
North Sea						207						11		%				250						12		%
Total(1)						$	1,942					100		%				$	2,039					100		%

(1) Includes revenues attributable to a noncontrolling interest in Egypt.

Production

The Company’s production volumes by country were as follows:

						For the Quarter Ended March 31,
						2026						Increase (Decrease)						2025
Oil Volume (b/d)
United States						123,898						(1)%						125,124
Egypt(1)(2)						86,736						1%						86,173
North Sea						21,336						(15)%						25,206
Total						231,970						(2)%						236,503
Natural Gas Volume (Mcf/d)
United States						413,975						(28)%						574,736
Egypt(1)(2)						381,406						20%						317,209
North Sea						29,045						(8)%						31,606
Total						824,426						(11)%						923,551
NGL Volume (b/d)
United States						71,826						(7)%						77,405
North Sea						1,151						1%						1,144
Total						72,977						(7)%						78,549
BOE per day(3)
United States						264,720						(11)%						298,319
Egypt(1)(2)						150,304						8%						139,041
North Sea(4)						27,328						(14)%						31,618
Total						442,352						(6)%						468,978

(1) Gross production volumes in Egypt were as follows:

						For the Quarter Ended March 31,
						2026												2025
Oil (b/d)						121,472												128,025
Natural Gas (Mcf/d)						517,623												456,955

(2) Includes net production volumes per day attributable to a noncontrolling interest in Egypt of:

						For the Quarter Ended March 31,
						2026												2025
Oil (b/d)						28,921												28,746
Natural Gas (Mcf/d)						127,175												105,820

(3) The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio. This ratio is not reflective of the price ratio between the two products.

(4) Average sales volumes from the North Sea for the first quarters of 2026 and 2025 were 28,275 boe/d and 36,704 boe/d, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.

Pricing

The Company’s average selling prices by country were as follows:

						For the Quarter Ended March 31,
						2026						Increase (Decrease)						2025
Average Oil Price – Per barrel
United States						$	72.53					—%						$	72.45
Egypt						86.01						15%						75.06
North Sea						84.67						12%						75.30
Total						78.69						7%						73.73
Average Natural Gas Price – Per Mcf
United States						$	(0.32)					(116)%						$	2.00
Egypt						4.01						26%						3.19
North Sea						14.19						(5)%						14.96
Total						2.12						(25)%						2.81
Average NGL Price – Per barrel
United States						$	19.89					(29)%						$	28.12
North Sea						49.24						(4)%						51.39
Total						20.96						(27)%						28.75

First-Quarter 2026 compared to First-Quarter 2025

Crude Oil Crude oil revenues for the first quarter of 2026 totaled $1.6 billion, a $44 million increase from the comparative 2025 quarter. A 7 percent increase in average realized prices increased first-quarter 2026 oil revenues by $107 million compared to the first quarter of 2025, while 4 percent lower average daily sales volumes decreased revenues by $63 million. Crude oil accounted for 85 percent of total oil and gas production revenues and 52 percent of worldwide production in the first quarter of 2026.

The Company’s worldwide oil production decreased 4.5 Mb/d to 232 Mb/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of natural production decline in the U.S. and North Sea, operational downtime, and the sale of non-core assets in the U.S. Also during the first quarter of 2026, the timing of liftings in the North Sea drove an additional 4.4 Mb/d decrease in sales volumes compared to the same prior-year period. These decreases were partially offset by drilling activity in the Permian Basin and improved well performance in the North Sea.

Natural Gas Natural gas revenues for the first quarter of 2026 totaled $157 million, a $76 million decrease from the comparative 2025 quarter. A 25 percent decrease in average realized prices, driven by periods of negative pricing across the Permian Basin, decreased first-quarter 2026 natural gas revenues by $57 million compared to the first quarter of 2025, while 11 percent lower average daily production decreased gas revenues by $19 million. Natural gas accounted for 8 percent of total oil and gas production revenues and 31 percent of worldwide production during the first quarter of 2026.

The Company’s worldwide natural gas production decreased 99.1 MMcf/d to 824.4 MMcf/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments at Alpine High compared with the 2025 period in response to extreme Waha basis differentials, including periods of negative pricing. These curtailments were undertaken to mitigate the economic impact of selling gas into constrained markets at uneconomic or negative prices. Natural gas production was also lower as a result of the sale of non-core assets and operational downtime in the U.S., and natural production decline in the U.S. and North Sea. These decreases were partially offset by drilling activity in Egypt and the Permian Basin, with Egypt also benefitting from higher realized natural gas prices and improved well performance in the North Sea.

NGL NGL revenues for the first quarter of 2026 totaled $141 million, a $65 million decrease from the comparative 2025 quarter. A 27 percent decrease in average realized prices decreased first-quarter 2026 NGL revenues by $56 million compared to the first quarter of 2025, while 7 percent lower average daily production decreased revenues by $9 million. NGLs accounted for 7 percent of total oil and gas production revenues and 17 percent of worldwide production during the first quarter of 2026.

The Company’s worldwide NGL production decreased 5.6 Mb/d to 73.0 Mb/d during the first quarter of 2026 from the comparative prior-year period, primarily a result of increased volume curtailments and weather shut-ins compared with the 2025 period. NGL production was also lower as a result of the sale of non-core assets and operational downtime in the U.S. and natural production decline in the U.S. and North Sea. These decreases were partially offset by drilling activity in the Permian Basin and improved well performance in the North Sea.

Purchased Oil and Gas Sales

Purchased oil and gas sales represent volumes attributable to domestic oil and gas purchases that were sold by the Company primarily to fulfill oil and natural gas takeaway obligations and commitments, including deliveries under international LNG price-based contracts. Sales related to purchased volumes totaled $385 million and $597 million during the first quarters of 2026 and 2025, respectively. Purchased oil and gas sales were partially offset by associated purchase costs of $75 million and $474 million during the first quarters of 2026 and 2025, respectively. The higher margin between purchased volume sales compared to costs realized during the first quarter of 2026 was primarily attributable to extreme Permian Basin natural gas price differentials with Houston Ship Channel pricing.

Operating Expenses

The Company’s operating expenses were as follows and include costs attributable to a noncontrolling interest in Egypt:

						For the Quarter Ended March 31,
						2026						2025
						(In millions)
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:
Oil and gas property and equipment						546						636
Other assets						7						7
Asset retirement obligation accretion						42						39
Financing costs, net						57						(57)
Total Operating Expenses						$	1,385					$	1,849

Lease Operating Expenses (LOE)

LOE decreased $45 million from the first quarter of 2025. On a per-unit basis, LOE decreased 5 percent in the first quarter of 2026 when compared to the first quarter of 2025. The decrease in absolute costs was primarily driven by the sale of non-core assets in the Permian Basin and continued cost reduction efforts across all operating areas.

Gathering, Processing, and Transmission (GPT)

GPT costs decreased $13 million from the first quarter of 2025, primarily driven by a decrease in production volumes in the U.S. compared to the same prior-year period.

Purchased Oil and Gas Costs

Purchased oil and gas costs decreased $399 million from the first quarter of 2025, primarily driven by decreased oil and gas volume purchases following the expiration of certain third-party contracts in 2025 and gas volumes purchased at significantly lower prices in the Permian Basin.

Taxes Other Than Income

Taxes other than income decreased $17 million from the first quarter of 2025, primarily from lower severance taxes driven by decreased production volumes in the U.S. and lower ad valorem taxes compared to the same prior-year period.

Exploration Expenses

The Company’s exploration expenses were as follows:

						For the Quarter Ended March 31,
						2026						2025
						(In millions)
Unproved leasehold impairments						$	1					$	—
Dry hole expense						11						11
Geological and geophysical expense						2						4
Exploration overhead and other						12						15
Total Exploration						$	26					$	30

Exploration expenses decreased $4 million from the first quarter of 2025, primarily the result of lower exploration overhead and geological and geophysical expense in the first quarter of 2026 compared to the same prior-year period.

General and Administrative (G&A) Expenses

G&A expenses increased $17 million from the first quarter of 2025, primarily driven by higher cash-based stock compensation expense resulting from changes in the Company’s stock price during the period, partially offset by impacts from cost-reduction efforts on personnel and other overhead expenses.

Transaction, Reorganization, and Separation (TRS) Costs

TRS costs decreased $30 million from the first quarter of 2025, primarily associated with employee separations and other cost-saving initiatives that occurred during the first quarter of 2025.

Depreciation, Depletion, and Amortization (DD&A)

Total DD&A expenses decreased $90 million from the first quarter of 2025. The Company’s DD&A rate on its oil and gas properties decreased $1.21 per boe from the first quarter of 2025. The decrease in DD&A expense on an absolute basis and on a per boe basis was primarily driven by lower DD&A rates resulting from the sale of non-core assets in the Permian Basin during 2025.

Financing Costs, Net

The Company’s Financing costs were as follows:

						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)
Total Financing costs, net						$	57					$	(57)

Net financing costs increased $114 million from the first quarter of 2025, primarily the result of gains on extinguishment of debt from the Company’s cash tender purchases during the first quarter of 2025, partially offset by a decrease in interest expense from the associated lower long-term debt balance.

Provision for 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.

Capital Resources and Liquidity

Operating cash flows are the Company’s principal source of liquidity. The Company’s short-term and long-term operating cash flows are impacted by highly volatile commodity prices, as well as production costs and sales volumes. The Company expects commodity prices to continue to be volatile in the near term as a result of geopolitical instability and tensions, including in the Middle East, macroeconomic uncertainty, current and potential tariffs or trade barriers, supply chain disruptions, and concerns over a potential economic recession. Significant changes in commodity prices impact the Company’s revenues, earnings, and cash flows. These changes potentially impact the Company’s liquidity if costs do not trend with commodity prices. Historically, costs have trended with commodity prices, albeit on a lag. Sales volumes also impact cash flows; however, they have a less volatile impact in the short term.

The Company’s long-term operating cash flows are dependent on reserve replacement and the level of costs required for ongoing operations. Cash investments are required to fund activity necessary to offset the inherent declines in production and proved crude oil and natural gas reserves. Future success in maintaining and growing reserves and production is highly dependent on the success of the Company’s drilling program and its ability to add reserves economically. Changes in commodity prices also impact estimated quantities of proved reserves.

At this time, the Company is unable to predict to what extent ongoing international conflicts in the Middle East, Russia, and Ukraine, and potential changes in trade restrictions and tariffs will impact its business. If inflationary pressures from these and other economic conditions persist or worsen, the Company may incur additional operating costs. The Company will continue to monitor the impact and consequences of these factors on its operations.

The Company plans to invest approximately $2.1 billion in upstream capital investment in 2026. The Company is committed to maintaining a safe, steady, and efficient level of activity as part of its planned capital investment program. For the rest of 2026, the Company will continue to budget its capital program at levels to fund activity necessary to offset inherent declines in production and proved oil and natural gas reserves, subject to prevailing commodity prices. Future rig activity levels and drilling targets will be dependent on the success of the Company’s drilling program and its ability to add reserves economically.

The Company believes its available liquidity and capital resource alternatives, combined with proactive measures to adjust its capital budget to reflect volatile commodity prices and anticipated operating cash flows, will be adequate to fund short-term and long-term operations, including the Company’s capital development program, repayment of debt maturities, payment of dividends, share buy-back activity, and amounts that may ultimately be paid in connection with commitments and contingencies.

The Company may also elect to utilize available cash on hand, committed borrowing capacity, access to both debt and equity capital markets, or proceeds from the sale of nonstrategic assets for all other liquidity and capital resource needs.

For additional information, refer to Part I, Items 1 and 2—Business and Properties, and Item 1A—Risk Factors, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Sources and Uses of Cash

The following table presents the sources and uses of the Company’s cash and cash equivalents for the periods presented:

						For the Three Months Ended March 31,
						2026						2025
						(In millions)
Sources of Cash and Cash Equivalents:
Net cash provided by operating activities						$	554					$	1,096
Fixed-rate debt borrowings						—						846
Proceeds from commercial paper and revolving credit facilities, net						—						433
Other						1						—
Total Sources of Cash and Cash Equivalents						555						2,375
Uses of Cash and Cash Equivalents:
Additions to upstream oil and gas property						$	542					$	777
Leasehold and property acquisitions						4						13
Payments on term loan facility						—						900
Payments on fixed-rate debt						79						905
Dividends paid to APA common stockholders						88						91
Distributions to noncontrolling interest						65						126
Treasury stock activity, net						—						100
Other, net						—						21
Total Uses of Cash and Cash Equivalents						778						2,933
Increase (Decrease) in Cash and Cash Equivalents						$	(223)					$	(558)

Sources of Cash and Cash Equivalents

Net Cash Provided by Operating Activities Operating cash flows are the Company’s primary source of capital and liquidity and are impacted, both in the short term and the long term, by volatile commodity prices. The factors that determine operating cash flows are largely the same as those that affect net earnings, with the exception of non-cash expenses such as DD&A, exploratory dry hole expense, asset impairments, asset retirement obligation accretion, and deferred income tax expense.

Net cash provided by operating activities during the first three months of 2026 totaled $554 million, $542 million lower from the first three months of 2025, primarily due to lower revenues from decreased oil and gas production, lower natural gas prices, collection of outstanding Egypt receivables in 2025, and timing of other working capital items.

For a detailed discussion of commodity prices, production, and operating expenses, refer to “Results of Operations” in this Item 2. For additional detail on the changes in operating assets and liabilities and the non-cash expenses that do not impact net cash provided by operating activities, refer to the Statement of Consolidated Cash Flows in the Consolidated Financial Statements set forth in Part I, Item 1, Financial Statements of this Quarterly Report on Form 10-Q.

Uses of Cash and Cash Equivalents

Additions to Oil & Gas Property During the first three months of 2026 and 2025, exploration and development cash expenditures were $542 million and $777 million, respectively. The decrease in capital investment compared to the prior-year period is directly related to the Company’s efficiency gains on drilling and completion activities in the Permian Basin and Egypt. The Company operated an average of approximately 17 drilling rigs during the first three months of 2026, compared to an average of approximately 22 drilling rigs during the first three months of 2025.

Leasehold and Property Acquisitions During the first three months of 2026 and 2025, the Company completed other leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $4 million and $13 million, respectively.

Payments on Fixed-Rate Debt During the first three months of 2026, the Company repaid in cash on maturity $79 million of long-term debt due during the quarter, plus accrued and unpaid interest to the maturity date.

During the first three months of 2025, the Company settled its private exchange and cash tender offers for certain notes and debentures of Apache and made open market repurchases for an aggregate cash payment amount of $905 million, reflecting principal amounts, discount 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 During the first three months of 2026 and 2025, the Company paid $88 million and $91 million, respectively, for dividends on its common stock.

Distributions to Noncontrolling Interest 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. During the first three months of 2026 and 2025, the Company paid $65 million and $126 million, respectively, in cash distributions to Sinopec.

Liquidity

The following table presents a summary of the Company’s key financial indicators:

						March 31, 2026						December 31, 2025
						(In millions)
Cash and cash equivalents						$	293					$	516
Total debt – APA and Apache						4,414						4,493
Total equity						7,398						7,003
Available committed borrowing capacity under syndicated credit facilities						3,984						4,020

Cash and Cash Equivalents As of March 31, 2026, the Company had $293 million in cash and cash equivalents. The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase.

Debt As of March 31, 2026, the Company had $4.4 billion in total debt outstanding, which consisted of notes and debentures of APA and Apache and finance lease obligations. As of March 31, 2026, current debt included $2 million of finance lease obligations and $132 million of APA and Apache notes coming due within the next year.

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.

Off-Balance Sheet Arrangements The Company enters into customary agreements in the oil and gas industry for drilling rig commitments, firm transportation agreements, and other obligations that may not be recorded on the Company’s consolidated balance sheet. For more information regarding these and other contractual arrangements, please refer to “Contractual Obligations” in Part II, Item 7 of APA’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no material changes to the contractual obligations described therein.

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, after such sources have been exhausted, Apache agreed upon resolution of GOM Shelf’s second bankruptcy to loan GOM Shelf of up to $400 million to perform decommissioning, with such loans and related obligations 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.