APA Corporation

Overview

APA Corporation is an independent energy company that explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs). As a holding company, APA’s primary assets are its ownership interests in its consolidated subsidiaries.

Geographic and asset footprint

• United States: Operations concentrated in the Permian Basin (West Texas), expanded by the acquisition of Callon Petroleum assets. Additional activity includes other Permian-related properties and divestitures in the broader Permian, East Texas, and Eagle Ford regions.
• Egypt: Conventional onshore assets in the Western Desert.
• United Kingdom: Offshore assets on the North Sea Continental Shelf.
• Suriname: Offshore oil field development with targeted first production in 2028.
• International exploration interests: Uruguay, Alaska, and other locations with potential for future discoveries and development.

Corporate structure and disclosures

APA files its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K with the SEC and makes those filings available on its website. The company’s website provides additional information but that content is not incorporated by reference into the Form 10-K.

Strategic objectives and approach

APA maintains a diversified portfolio across conventional and unconventional resources and both onshore and offshore assets to pursue global exploration opportunities. The company seeks to balance affordability, reliability, safety, environmental responsibility, and risk management while applying financial discipline to generate cash flow for debt reduction, share repurchases, and other shareholder returns. APA monitors hydrocarbon pricing fundamentals to reallocate capital as part of its planning process.

Portfolio optimization and capital allocation — key transactions

• 2024: Completed an all-stock acquisition of Callon Petroleum Company in a transaction valued at approximately $4.5 billion, including Callon’s debt. The acquired assets include about 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin, expanding APA’s Permian inventory and producing scale advantages.
• 2024 and after: Sold non-core producing properties in the Permian Basin, East Texas Austin Chalk, Eagle Ford, and non-core mineral and royalty interests in the Permian Basin. Proceeds totaled about $1.6 billion and were primarily used to reduce debt.
• 2025: Sold additional non-core assets and leasehold in the Permian Basin, completing an exit from New Mexico. Final proceeds were about $571 million and were deployed mainly to debt reduction.
• Overall effect: These acquisitions and divestitures are intended to streamline acreage, improve capital efficiency, and position the portfolio for longer-term, cost-efficient growth.

Financial and outcome focus

APA emphasizes debt reduction, capital efficiency, and returning capital to shareholders through mechanisms such as debt paydown and potential share repurchases.