APA · 8-K · 20260805PR000050
Liquidity and Debt Position
APA Corp · 2026-08-05 · Importance 89 · Surprise 82 · No source text
APA generated $1.706 billion of operating cash flow in the second quarter, up 44% year over year, and generated $1.215 billion of free cash flow in the first half versus $260 million in the prior-year period. The company repaid $752 million of near-term bond debt during the first half, including $673 million in the second quarter. Total debt declined to $3.743 billion at June 30 from $4.493 billion at December 31, 2025, while net debt declined to $3.299 billion from $3.977 billion. Cash and cash equivalents totaled $444 million at quarter-end, and APA said cumulative debt reduction since year-end 2024 had lowered annualized interest expense by more than $155 million.
Key facts
- APA repaid $752 million of near-term bond debt during the first half of 2026, including $673 million in the second quarter source
- Payments on fixed-rate debt during quarter ended June 30, 2026: $675 million (net cash used in financing activities includes Payments on fixed-rate debt $675 million) source
- Net debt at the end of second-quarter 2026: $3.3 billion source
- Net cash provided by operating activities in second-quarter 2026: $1.7 billion ($1,706 million in tabular detail) source
- Free cash flow for second-quarter 2026: $738 million source
- Total free cash flow generation for first half of 2026: $1.2 billion source
- Common shares outstanding at June 30, 2026: 351 million source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | — | APA repaid $752 million of near-term bond debt during the first half of 2026, including $673 million in the second quarter |
| cash | negative | realized | — | APA repaid $752 million of near-term bond debt during the first half of 2026, including $673 million in the second quarter |
| cash | negative | realized | — | Payments on fixed-rate debt during quarter ended June 30, 2026: $675 million (net cash used in financing activities includes Payments on… |
| liability | negative | realized | — | Net debt at the end of second-quarter 2026: $3.3 billion |
| cash | positive | realized | — | Net cash provided by operating activities in second-quarter 2026: $1.7 billion ($1,706 million in tabular detail) |
| cash | positive | realized | — | Free cash flow for second-quarter 2026: $738 million |
| cash | positive | realized | — | Total free cash flow generation for first half of 2026: $1.2 billion |