APA · 8-K · 20260805PR000050

Operating Expense Trends

APA Corp · 2026-08-05 · Importance 54 · Surprise 40 · No source text

Lease operating expense decreased 4% year over year to $353 million in the second quarter and six-month expense decreased 8% to $715 million. Gathering, processing and transmission expense declined 16% to $87 million, while purchased oil and gas costs shifted to a $122 million benefit from $304 million of expense. Depreciation, depletion and amortization decreased 5% to $504 million, and transaction, reorganization and separation costs increased slightly to $12 million from $11 million. General and administrative expense increased 3% to $68 million, while six-month general and administrative expense increased 12% to $183 million.

Key facts

• Lease operating expenses guidance lowered by $25 million to $1.5 billion for full-year 2026 source
• Lease operating expense for second-quarter 2026: $353 million (below guidance) and lease operating expenses for six months ended June 30, 2026: $715 million source
• Depreciation, depletion, and amortization for oil and gas property in quarter ended June 30, 2026: $497 million source
• Lease operating expenses for six months ended June 30, 2026: $715 million (tabular) source

Impact estimates