Item 1. FINANCIAL STATEMENTS

APA CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

						For the Quarter Ended June 30,												For the Six Months Ended June 30,
						2026						2025						2026						2025
						(In millions, except per share data)
REVENUES AND OTHER:
Oil, natural gas, and natural gas liquids production revenues						$	2,037					$	1,718					$	3,979					$	3,757
Purchased oil and gas sales						336						460						721						1,057
Total revenues						2,373						2,178						4,700						4,814
Derivative instrument gains (losses), net						8						138						(105)						110
Gain (loss) on divestitures, net						(2)						282						(2)						280
Other, net						20						14						21						20
						2,399						2,612						4,614						5,224
OPERATING EXPENSES:
Lease operating expenses						353						367						715						774
Gathering, processing, and transmission						87						104						178						208
Purchased oil and gas costs (proceeds)						(122)						304						(47)						778
Taxes other than income						61						54						118						128
Exploration						58						43						84						73
General and administrative						68						66						183						164
Transaction, reorganization, and separation						12						11						19						48
Depreciation, depletion, and amortization						504						530						1,057						1,173
Asset retirement obligation accretion						43						39						85						78
Financing costs, net						58						66						115						9
						1,122						1,584						2,507						3,433
NET INCOME BEFORE INCOME TAXES						1,277						1,028						2,107						1,791
Current income tax provision						234						232						536						538
Deferred income tax provision						216						131						201						170
NET INCOME INCLUDING NONCONTROLLING INTERESTS						827						665						1,370						1,083
Net income attributable to noncontrolling interest						80						62						177						133
NET INCOME ATTRIBUTABLE TO COMMON STOCK						$	747					$	603					$	1,193					$	950
NET INCOME PER COMMON SHARE:
Basic						$	2.11					$	1.67					$	3.37					$	2.62
Diluted						$	2.11					$	1.67					$	3.37					$	2.62
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic						353						361						353						362
Diluted						354						361						354						362

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 June 30,												For the Six Months Ended June 30,
						2026						2025						2026						2025
						(In millions)
NET INCOME INCLUDING NONCONTROLLING INTERESTS						$	827					$	665					$	1,370					$	1,083
OTHER COMPREHENSIVE LOSS, NET OF TAX:
Pension and postretirement benefit plan						(1)						(1)						(1)						(1)
COMPREHENSIVE INCOME INCLUDING NONCONTROLLING INTERESTS						826						664						1,369						1,082
Comprehensive income attributable to noncontrolling interest						80						62						177						133
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCK						$	746					$	602					$	1,192					$	949

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 Six Months Ended June 30,
						2026						2025
						(In millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including noncontrolling interests						$	1,370					$	1,083
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized derivative instrument gains, net						(70)						(108)
(Gain) loss on divestitures, net						2						(280)
Exploratory dry hole expense and unproved leasehold impairments						56						43
Depreciation, depletion, and amortization						1,057						1,173
Asset retirement obligation accretion						85						78
Provision for deferred income taxes						201						170
(Gain) loss on extinguishment of debt						4						(145)
Other, net						(6)						18
Changes in operating assets and liabilities:
Receivables						(147)						433
Inventories						(26)						5
Drilling advances and other current assets						(33)						222
Deferred charges and other long-term assets						(3)						1
Accounts payable						(123)						(153)
Accrued expenses						(50)						(204)
Deferred credits and noncurrent liabilities						(57)						(59)
NET CASH PROVIDED BY OPERATING ACTIVITIES						2,260						2,277
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to upstream oil and gas property						(1,111)						(1,437)
Leasehold and property acquisitions						(6)						(20)
Proceeds from asset divestitures						—						571
Other, net						(16)						5
NET CASH USED IN INVESTING ACTIVITIES						(1,133)						(881)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on commercial paper and revolving credit facilities, net						—						(333)
Payments on term loan facility						—						(900)
Fixed-rate debt borrowings						—						846
Payments on fixed-rate debt						(754)						(954)
Distributions to noncontrolling interest						(164)						(217)
Treasury stock activity, net						(100)						(150)
Dividends paid to APA common stockholders						(177)						(181)
Other, net						(4)						(25)
NET CASH USED IN FINANCING ACTIVITIES						(1,199)						(1,914)
NET DECREASE IN CASH AND CASH EQUIVALENTS						(72)						(518)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR						516						625
CASH AND CASH EQUIVALENTS AT END OF PERIOD						$	444					$	107
SUPPLEMENTARY CASH FLOW DATA:
Interest paid, net of capitalized interest						$	117					$	155
Income taxes paid, net of refunds						477						542

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

APA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)

						June 30, 2026						December 31, 2025
						(In millions, except share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents						$	444					$	516
Receivables, net of allowance of $125 and $140						1,222						1,062
Other current assets (Note 5)						611						543
						2,277						2,121
PROPERTY AND EQUIPMENT:
Oil and gas properties						46,724						45,507
Gathering, processing, and transmission facilities						445						445
Other						535						536
Less: Accumulated depreciation, depletion, and amortization						(34,805)						(33,740)
						12,899						12,748
OTHER ASSETS:
Deferred tax asset (Note 9)						2,126						2,328
Deferred charges and other						671						564
						$	17,973					$	17,761
LIABILITIES, NONCONTROLLING INTERESTS, AND EQUITY
CURRENT LIABILITIES:
Accounts payable						$	730					$	871
Current debt						2						213
Other current liabilities (Note 6)						1,675						1,487
						2,407						2,571
LONG-TERM DEBT (Note 8)						3,741						4,280
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Asset retirement obligation (Note 7)						2,723						2,699
Decommissioning contingency for sold Gulf of America properties (Note 10)						677						782
Other						481						426
						3,881						3,907
EQUITY:
Common stock, $0.625 par, 860,000,000 shares authorized, 492,577,134 and 492,038,127 shares issued, respectively						308						308
Paid-in capital						12,741						12,816
Retained earnings (accumulated deficit)						384						(721)
Treasury stock, at cost, 141,910,293 and 139,073,481 shares, respectively						(6,421)						(6,320)
Accumulated other comprehensive income						9						10
APA SHAREHOLDERS’ EQUITY						7,021						6,093
Noncontrolling interest						923						910
TOTAL EQUITY						7,944						7,003
						$	17,973					$	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						Retained Earnings (Accumulated Deficit)						Treasury Stock						Accumulated Other Comprehensive Income						APA SHAREHOLDERS’ EQUITY						Noncontrolling Interest						TOTAL EQUITY
						(In millions)
For the Quarter Ended June 30, 2025
Balance at March 31, 2025						$	307					$	13,063					$	(1,808)					$	(6,138)					$	12					$	5,436					$	1,027					$	6,463
Net income attributable to common stock						—						—						603						—						—						603						—						603
Net income attributable to noncontrolling interest						—						—						—						—						—						—						62						62
Distributions to noncontrolling interest						—						—						—						—						—						—						(91)						(91)
Common dividends declared ($0.25 per share)						—						(90)						—						—						—						(90)						—						(90)
Treasury stock activity, net						—						—						—						(51)						—						(51)						—						(51)
Other						1						7						—						—						(1)						7						—						7
Balance at June 30, 2025						$	308					$	12,980					$	(1,205)					$	(6,189)					$	11					$	5,905					$	998					$	6,903
For the Quarter Ended June 30, 2026
Balance at March 31, 2026						$	308					$	12,733					$	(275)					$	(6,320)					$	10					$	6,456					$	942					$	7,398
Net income attributable to common stock						—						—						747						—						—						747						—						747
Net income attributable to noncontrolling interest						—						—						—						—						—						—						80						80
Distributions to noncontrolling interest						—						—						—												—						—						(99)						(99)
Common dividends declared ($0.25 per share)						—						—						(88)												—						(88)						—						(88)
Treasury stock activity, net						—						—						—						(101)						—						(101)						—						(101)
Other						—						8						—						—						(1)						7						—						7
Balance at June 30, 2026						$	308					$	12,741					$	384					$	(6,421)					$	9					$	7,021					$	923					$	7,944

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 - Continued

(Unaudited)

						Common Stock						Paid-In Capital						Retained Earnings (Accumulated Deficit)						Treasury Stock						Accumulated Other Comprehensive Income						APA SHAREHOLDERS’ EQUITY						Noncontrolling Interest						TOTAL EQUITY
						(In millions)
For the Six Months Ended June 30, 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						—						—						950						—						—						950						—						950
Net income attributable to noncontrolling interest						—						—						—						—						—						—						133						133
Distributions to noncontrolling interest						—						—						—						—						—						—						(217)						(217)
Common dividends declared ($0.50 per share)						—						(181)						—						—						—						(181)						—						(181)
Treasury stock activity, net						—						—						—						(152)						—						(152)						—						(152)
Other						1						8						—						—						(1)						8						—						8
Balance at June 30, 2025						$	308					$	12,980					$	(1,205)					$	(6,189)					$	11					$	5,905					$	998					$	6,903
For the Six Months Ended June 30, 2026
Balance at December 31, 2025						$	308					$	12,816					$	(721)					$	(6,320)					$	10					$	6,093					$	910					$	7,003
Net income attributable to common stock						—						—						1,193						—						—						1,193						—						1,193
Net income attributable to noncontrolling interest						—						—						—						—						—						—						177						177
Distributions to noncontrolling interest						—						—						—						—						—						—						(164)						(164)
Common dividends declared ($0.50 per share)						—						(88)						(88)						—						—						(176)						—						(176)
Treasury stock activity, net						—						—						—						(101)						—						(101)						—						(101)
Other						—						13						—						—						(1)						12						—						12
Balance at June 30, 2026						$	308					$	12,741					$	384					$	(6,421)					$	9					$	7,021					$	923					$	7,944

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 June 30, 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 June 30, 2026 and June 30, 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 $1.0 billion and $826 million as of June 30, 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 the Egyptian General Petroleum Corporation (EGPC) 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 June 30, 2026 and June 30, 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 June 30, 2026 and June 30, 2025.

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

Transaction, Reorganization, and Separation (TRS)

The Company recorded $12 million and $19 million of TRS costs during the second quarter and the first six months of 2026, respectively, and $11 million and $48 million of TRS costs during the second quarter and the first six months of 2025, respectively. TRS costs incurred in the first six months of 2026 comprised primarily organization restructuring and other consulting and transaction costs. TRS costs incurred in the first six months of 2025 comprised primarily employee separations 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 second quarter and the first six months of 2026, the Company completed leasehold acquisitions, primarily in the Permian Basin, for aggregate cash consideration of approximately $2 million and $6 million, respectively.

2025 Activity

Leasehold and Property Acquisitions

During the second quarter and the first six months of 2025, the Company completed leasehold acquisitions, primarily in the Permian Basin, for aggregate cash consideration of approximately $7 million and $20 million, respectively.

U.S. Divestiture

During the second quarter of 2025, the Company completed the sale of all of its New Mexico Permian assets. The assets had a carrying value of $300 million and associated retirement obligation of $9 million, which were exchanged for total cash consideration of $573 million, inclusive of post-closing adjustments. The Company received cash of $567 million during the second quarter of 2025 and received the remaining balance in the third quarter of 2025. The Company recognized a gain of $282 million during the second quarter of 2025 in association with this sale. Proceeds from the transaction were used primarily for debt reduction.

3. CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $340 million and $338 million as of June 30, 2026 and December 31, 2025, respectively. The increase is primarily attributable to additional drilling activity, partially offset by successful transfer of well costs and wells charged to dry hole expense 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 six months of 2026. During the first six months of 2025, approximately $8 million of suspended well costs previously capitalized for greater than one year at December 31, 2024 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 June 30, 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 June 30, 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
July—December 2026						NYMEX Henry Hub/IF Waha						45,080						$(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)
June 30, 2026
Liabilities:
Commodity derivative instruments						$	—					$	6					$	—					$	6					$	—					$	6
Foreign currency derivative instruments						—						1						—						1						—						1
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:

						June 30, 2026						December 31, 2025
						(In millions)
Current Liabilities: Other current liabilities						$	7					$	77
Total derivative liabilities						$	7					$	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 June 30,												For the Six Months Ended June 30,
			2026						2025						2026						2025
						(In millions)
Realized:
Commodity derivative instruments						$	(109)					$	2					$	(175)					$	2
Realized gains (losses), net						(109)						2						(175)						2
Unrealized:
Commodity derivative instruments						116						138						71						110
Contingent consideration arrangements						—						(2)						—						(2)
Foreign currency derivative instruments						1						—						(1)						—
Unrealized gains, net						117						136						70						108
Derivative instrument gains (losses), net						$	8					$	138					$	(105)					$	110

Derivative instrument gains and losses are recorded in “Derivative instrument gains (losses), net” under “Revenues and Other” in the Company’s statement of consolidated operations. Unrealized gains and 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 (gains) 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:

						June 30, 2026						December 31, 2025
						(In millions)
Inventories						$	371					$	351
Drilling advances						130						93
Prepaid assets and other						110						99
Total Other current assets						$	611					$	543

6. OTHER CURRENT LIABILITIES

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

						June 30, 2026						December 31, 2025
						(In millions)
Accrued operating expenses						$	157					$	129
Accrued exploration and development						421						289
Accrued compensation and benefits						197						265
Accrued interest						78						88
Accrued income taxes						164						112
Current asset retirement obligation						207						181
Current operating lease liability						138						97
Current decommissioning contingency for sold Gulf of America properties						170						99
Other						143						227
Total Other current liabilities						$	1,675					$	1,487

7. ASSET RETIREMENT OBLIGATION

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

						(In millions)
Asset retirement obligation, December 31, 2025						$	2,880
Liabilities incurred						7
Liabilities settled						(45)
Liabilities divested						1
Accretion expense						85
Revisions in estimated liabilities						2
Asset retirement obligation, June 30, 2026						2,930
Less current portion						(207)
Asset retirement obligation, long-term						$	2,723

8. DEBT AND FINANCING COSTS

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

						June 30, 2026						December 31, 2025
						(In millions)
APA notes and debentures before unamortized discount and debt issuance costs(1)						$	3,178					$	3,579
Apache notes and debentures before unamortized discount and debt issuance costs(2)						582						932
Apache finance lease obligations						26						28
Unamortized discount						(21)						(23)
Debt issuance costs						(22)						(23)
Total debt						3,743						4,493
Current maturities						(2)						(213)
Long-term debt						$	3,741					$	4,280

(1) The fair values of the APA notes and debentures were $3.1 billion and $3.4 billion as of June 30, 2026 and December 31, 2025, respectively.

(2) The fair values of the Apache notes and debentures were $534 million and $881 million as of June 30, 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 June 30, 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 June 30,												For the Six Months Ended June 30,
						2026						2025						2026						2025
						(In millions)
Interest expense						$	69					$	86					$	139					$	177
Amortization of debt issuance costs						1						2						2						4
Capitalized interest						(16)						(16)						(30)						(20)
Loss (gain) on extinguishment of debt						4						(3)						4						(145)
Interest income						—						(3)						—						(7)
Financing costs, net						$	58					$	66					$	115					$	9

Indenture Debt Activity

On June 29, 2026, APA fully redeemed its privately placed 4.250% Notes due 2030, and Apache fully redeemed its 4.250% Notes due 2030. Noteholders were paid an aggregate $118 million in cash, which comprised outstanding principal amounts, 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.

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

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.

During the six months ended June 30, 2025, the Company purchased in the open market and had canceled indebtedness issued under indentures of APA and Apache in an aggregate principal amount of $108 million for an aggregate purchase price of $100 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $10 million. The Company recognized a $10 million gain on these repurchases.

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.

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 June 30, 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 June 30, 2026 and December 31, 2025, there were no outstanding borrowings under these facilities. As of June 30, 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 June 30, 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 June 30, 2026 and December 31, 2025, the Company had no CP Notes outstanding.

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 six months ended June 30, 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 six months ended June 30, 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 June 30, 2026, the Company has an accrued liability of approximately $26 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 June 30, 2026, the Company had an undiscounted reserve for environmental remediation of approximately $2 million.

On May 11, 2026, the Company received a draft Administrative Penalty Assessment from the U.S. Environmental Protection Agency concerning a December 12, 2025 Notice of Violation alleging violations of the Clean Air Act. The Notice of Violation followed helicopter flyovers between July 22, 2024, and August 19, 2024, at several of the Company’s oil and natural gas production facilities in the Texas Permian Basin. The notice and draft Administrative Penalty Assessment involve alleged emissions control and reporting violations. The Company is cooperating with the EPA and, while the Company is unable to reasonably estimate any potential loss associated with this matter, it is possible that resolution of this matter may result in a fine or penalty in excess of $300,000.

The Company is not aware of any environmental claims existing as of June 30, 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 June 30, 2026, the Company has 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 $847 million and $881 million for the periods ended June 30, 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 June 30,
						2026																		2025
						Income						Shares						Per Share						Income						Shares						Per Share
						(In millions, except per share amounts)
Basic:
Income attributable to common stock						$	747					353						$	2.11					$	603					361						$	1.67
Effect of Dilutive Securities:
Stock compensation awards						$	—					1						$	—					$	—					—						$	—
Diluted:
Income attributable to common stock						$	747					354						$	2.11					$	603					361						$	1.67
						For the Six Months Ended June 30,
						2026																		2025
						Income						Shares						Per Share						Income						Shares						Per Share
						(In millions, except per share amounts)
Basic:
Income attributable to common stock						$	1,193					353						$	3.37					$	950					362						$	2.62
Effect of Dilutive Securities:
Stock options and other						$	—					1						$	—					$	—					—						$	—
Diluted:
Income attributable to common stock						$	1,193					354						$	3.37					$	950					362						$	2.62

The diluted earnings per share calculation excludes 0.8 million and 3.6 million of options and restricted stock units that were anti-dilutive during the second quarters of 2026 and 2025, respectively, and 0.9 million and 3.6 million during the first six months of 2026 and 2025, respectively.

Stock Repurchase Program

For each of the second quarter and the six months ended June 30, 2026, the Company repurchased 2.8 million shares at an average price of $35.26 per share, and as of June 30, 2026, the Company had remaining authorization to repurchase up to 19.0 million shares. In the second quarter of 2025, the Company repurchased approximately 2.7 million shares at an average price of $18.53 per share. For the six months ended June 30, 2025, the Company repurchased 7.1 million shares at an average price of $21.21 per share.

The Company repurchased 0.3 million shares at an average price of $35.61 per share in July 2026, and as of July 31, 2026, the Company had remaining authorization to repurchase up to 18.7 million shares.

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 June 30, 2026 and June 30, 2025, the Company paid $88 million and $90 million, respectively, in dividends on its common stock. For the six months ended June 30, 2026 and June 30, 2025, the Company paid $177 million and $181 million, respectively, in dividends on its common stock.

12. BUSINESS SEGMENT INFORMATION

As of June 30, 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						Other**(2)**						Total**(3)**
For the Quarter Ended June 30, 2026						(In millions)
Revenues:
Oil revenues						$	1,106					$	613					$	107					$	—					$	1,826
Natural gas revenues						(109)						126						24						—						41
Natural gas liquids revenues						161						—						9						—						170
Oil, natural gas, and natural gas liquids production revenues						1,158						739						140						—						2,037
Purchased oil and gas sales						336						—						—						—						336
Realized losses on commodity derivative instruments						(109)						—						—						—						(109)
						1,385						739						140						—						2,264
Operating Expenses:
Lease operating expenses(4)						180						118						55						—						353
Gathering, processing, and transmission(4)						69						4						14						—						87
Purchased oil and gas costs (proceeds)						(122)						—						—						—						(122)
Taxes other than income(4)						61						—						—						—						61
Exploration(5)						6						50						—						2						58
Depreciation, depletion, and amortization(4)						340						133						31						—						504
Asset retirement obligation accretion						11						—						32						—						43
						545						305						132						2						984
Operating Income (Loss)(6)						$	840					$	434					$	8					$	(2)					1,280
Other Income (Expense):
Unrealized gains on derivative instruments																														117
Loss on divestitures, net																														(2)
Other, net																														20
General and administrative																														(68)
Transaction, reorganization, and separation																														(12)
Financing costs, net																														(58)
Income Before Income Taxes																														$	1,277

						U.S.						Egypt**(1)(3)**						North Sea						Other**(2)**						Total**(3)**
For the Six Months Ended June 30, 2026						(In millions)
Revenues:
Oil revenues						$	1,915					$	1,284					$	271					$	—					$	3,470
Natural gas revenues						(121)						264						55						—						198
Natural gas liquids revenues						290						—						21						—						311
Oil, natural gas, and natural gas liquids production revenues						2,084						1,548						347						—						3,979
Purchased oil and gas sales						721						—						—						—						721
Realized losses on commodity derivative instruments						(175)						—						—						—						(175)
						2,630						1,548						347						—						4,525
Operating Expenses:
Lease operating expenses(4)						350						228						137						—						715
Gathering, processing, and transmission(4)						136						12						30						—						178
Purchased oil and gas costs (proceeds)						(47)						—						—						—						(47)
Taxes other than income(4)						118						—						—						—						118
Exploration(5)						9						69						1						5						84
Depreciation, depletion, and amortization(4)						682						284						91						—						1,057
Asset retirement obligation accretion						22						—						63						—						85
						1,270						593						322						5						2,190
Operating Income (Loss)(6)						$	1,360					$	955					$	25					$	(5)					2,335
Other Income (Expense):
Unrealized gains on derivative instruments																														70
Loss on divestitures, net																														(2)
Other, net																														21
General and administrative																														(183)
Transaction, reorganization, and separation																														(19)
Financing costs, net																														(115)
Income Before Income Taxes																														$	2,107
Total Assets(7)						$	12,514					$	3,125					$	1,252					$	1,082					$	17,973

						U.S.						Egypt**(1)(3)**						North Sea						Other**(2)**						Total**(3)**
For the Quarter Ended June 30, 2025						(In millions)
Revenues:
Oil revenues						$	730					$	521					$	130					$	—					$	1,381
Natural gas revenues						48						109						27						—						184
Natural gas liquids revenues						144						—						9						—						153
Oil, natural gas, and natural gas liquids production revenues						922						630						166						—						1,718
Purchased oil and gas sales						460						—						—						—						460
Realized gains on commodity derivative instruments						2						—						—						—						2
						1,384						630						166						—						2,180
Operating Expenses:
Lease operating expenses(4)						196						100						71						—						367
Gathering, processing, and transmission(4)						85						7						12						—						104
Purchased oil and gas costs						304						—						—						—						304
Taxes other than income(4)						54						—						—						—						54
Exploration(5)						1						40						—						2						43
Depreciation, depletion, and amortization(4)						328						149						53						—						530
Asset retirement obligation accretion						11						—						28						—						39
						979						296						164						2						1,441
Operating Income (Loss)(6)						$	405					$	334					$	2					$	(2)					739
Other Income (Expense):
Unrealized gains on derivative instruments																														136
Gain on divestitures, net																														282
Other, net																														14
General and administrative																														(66)
Transaction, reorganization, and separation																														(11)
Financing costs, net																														(66)
Income Before Income Taxes																														$	1,028

						U.S.						Egypt**(1)(3)**						North Sea						Other**(2)**						Total**(3)**
For the Six Months Ended June 30, 2025						(In millions)
Revenues:
Oil revenues						$	1,546					$	1,103					$	332					$	—					$	2,981
Natural gas revenues						152						200						65						—						417
Natural gas liquids revenues						340						—						19						—						359
Oil, natural gas, and natural gas liquids production revenues						2,038						1,303						416						—						3,757
Purchased oil and gas sales						1,057						—						—						—						1,057
Realized gains on commodity derivative instruments						2						—						—						—						2
						3,097						1,303						416						—						4,816
Operating Expenses:
Lease operating expenses(4)						396						210						168						—						774
Gathering, processing, and transmission(4)						170						12						26						—						208
Purchased oil and gas costs						778						—						—						—						778
Taxes other than income(4)						128						—						—						—						128
Exploration(5)						3						60						1						9						73
Depreciation, depletion, and amortization(4)						747						302						124						—						1,173
Asset retirement obligation accretion						21						—						57						—						78
						2,243						584						376						9						3,212
Operating Income (Loss)(6)						$	854					$	719					$	40					$	(9)					1,604
Other Income (Expense):
Unrealized gains on derivative instruments																														108
Gain on divestitures, net																														280
Other, net																														20
General and administrative																														(164)
Transaction, reorganization, and separation																														(48)
Financing costs, net																														(9)
Income Before Income Taxes																														$	1,791
Total Assets(7)						$	12,752					$	3,386					$	1,163					$	777					$	18,078

(1)Includes oil and gas production revenue that will be paid as taxes by EGPC on behalf of the Company for the quarters and six months ended June 30, 2026 and June 30, 2025 of:

						For the Quarter Ended June 30,												For the Six Months Ended June 30,
						2026						2025						2026						2025
						(In millions)
Oil						$	161					$	125					$	353					$	276
Natural gas						33						26						73						50

(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 Other primarily reflects the Company’s Suriname exploration activities.

(6)Operating income includes $1 million and $2 million of leasehold impairments for the second quarter and first six months of 2026, respectively. Operating income includes no leasehold impairments for the second quarter and first six months of 2025.

(7)Intercompany balances are excluded from total assets.