With a market cap of $7.3 billion, APA Corporation (APA) is a leading independent energy company engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. With core operations in the U.S. Permian Basin, Egypt, the U.K. North Sea, and offshore Suriname, APA continues to expand its global footprint and resource base.
The Houston, Texas-based company is expected to announce its fiscal Q2 2025 earnings results after the market closes on Wednesday, Aug. 6. Ahead of this event, analysts expect APA to report an adjusted earnings of $0.54 per share, a decline of 53.9% from $1.17 per share in the previous year's quarter. It has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. In Q1 2025, APA beat the consensus adjusted EPS estimate by 27.7%.
For fiscal 2025, analysts expect the oil and natural gas producer to report adjusted EPS of $2.95, down 21.8% from $3.77 in fiscal 2024.
APA stock has dropped 35.6% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 11.4% rise and the Energy Select Sector SPDR Fund's (XLE) 2.7% drop over the same period.
Shares of APA climbed 4.5% following its Q1 2025 results on May 7. The company posted adjusted EPS of $1.06 and revenue of $2.6 billion, beating analysts' estimates. The company reported adjusted production of 398,000 BOE/day and achieved significant cost efficiency, lowering full-year development capital guidance by $150 million. APA also doubled its 2025 expected run-rate savings to $225 million and announced a promising Sockeye-2 discovery well in Alaska with superior reservoir quality.
Additionally, the $608 million New Mexico asset sale reinforced the company’s strategic focus on core assets and debt reduction.
Analysts' consensus rating on APA Corporation stock is cautious, with a "Hold" rating overall. Out of 26 analysts covering the stock, opinions include five "Strong Buys," one "Moderate Buy," 16 "Holds," one "Moderate Sell," and three "Strong Sells." As of writing, the stock is trading below the average analyst price target of $22.40.
