"Our focus remains on capital discipline and maximizing returns on investments as we navigate through current market uncertainties."
— John Christmann
03Detailed Report
0HGC.L
APA Corporation
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
APA Corporation reported revenues of $2.636 billion in QQ1 2025, reflecting a year-over-year increase of 35.11%, although a slight decrease of 2.80% from the previous quarter. The company’s net income surged to $347 million, a remarkable 162.88% increase compared to the same quarter last year, showcasing the company's operational efficiency and cost management improvements despite lower sequential revenue. Operating income also increased by 25.12% year-over-year to reach $767 million, indicating strong profit margins and effective operational strategies in a volatile oil market.
During the earnings call, management emphasized their commitment to capital discipline and strategic investments in high-return projects, which they believe will enhance sustainable growth opportunities moving forward. The outlook remains cautious but optimistic, focusing on navigating market unpredictability while leveraging operational expertise to maximize shareholder value.
Key Performance Indicators
Revenue
Increasing
2.64B
QoQ: -2.80% | YoY: 35.11%
Gross Profit
Increasing
939.00M
35.62% margin
QoQ: -14.56% | YoY: 0.32%
Operating Income
Increasing
767.00M
QoQ: -7.70% | YoY: 25.12%
Net Income
Increasing
347.00M
QoQ: -1.98% | YoY: 162.88%
EPS
Increasing
0.95
QoQ: -1.04% | YoY: 115.91%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Revenue for QQ1 2025 was $2.636 billion, a 35.11% rise from the same quarter last year, although it decreased by 2.80% sequentially. This reflects the ongoing recovery in oil prices and improved sales volumes.
Profitability: Gross profit increased slightly by 0.32% Year-over-Year (YoY) to $939 million, yet fell by 14.56% quarter-over-quarter (QoQ). The operating income saw a significant YoY growth of 25.12%, resulting in an operating income margin of 29.1%. In contrast, net income soared by 162.88% YoY to $347 million, but decreased by 1.98% QoQ. The EBITDAR ratio stood strong at 56.64%, reinforcing the effectiveness of cost management strategies in place.
Balance Sheet Health: Total assets are reported at $18.531 billion, with total liabilities of $12.068 billion, resulting in a manageable debt-to-equity ratio of 1.010. The current ratio of 0.885 indicates some liquidity constraints, but cash flow metrics suggest adequate operational liquidity.
Cash Flow: Operating cash flow was robust at $1.096 billion, while free cash flow stood at $306 million, affirming solid cash generation capabilities amidst capital expenditures of $790 million for the quarter.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.64B
35.11%
-2.80%
Gross Profit
939.00M
0.32%
-14.56%
Operating Income
767.00M
25.12%
-7.70%
Net Income
347.00M
162.88%
-1.98%
EPS
0.95
115.91%
-1.04%
Key Financial Ratios
Gross Profit Margin
Fair
38.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Excellent
29.30%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
13.20%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.87%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.38%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.89
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.01
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
5.51x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.41x
Price-to-book ratio reasonable for profitable companies
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