APA · 10-Q · 2026Q2 · Full report
Oil and Gas Price Sensitivity
APA Corp · 2026-08-06 · Importance 29 · Surprise 24 · In source text
APA remains exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production, as well as foreign-exchange movements on transactions denominated in foreign currencies. As of June 30, 2026, the company held natural-gas basis swaps covering 45.080 million MMBtu for July through December 2026, purchased at a weighted-average NYMEX Henry Hub/IF Waha differential of negative $1.96 per MMBtu. APA also held GBP/USD costless collars for 2026 with weighted-average floor and ceiling rates of $1.32 and $1.40 per pound, respectively.
Key facts
- A 74 percent decrease in average realized natural gas prices decreased Q2 2026 natural gas revenues by $135 million compared to Q2 2025, while 16 percent lower average daily production decreased gas revenues by $8 million. source
- As of June 30, 2026, the Company had derivative natural gas basis swap contracts for July—December 2026 of 45,080 (in 000's MMBtu) with a weighted average price differential of $(1.96) (NYMEX Henry Hub/IF Waha). source
- Crude oil prices realized during Q2 2026 averaged $98.24 per barrel, compared to $65.58 per barrel in Q2 2025 (a 50% increase). source
- Average oil price per barrel for the quarter ended June 30, 2026 was $98.24, a 50% increase versus the comparable prior period. source
- Average natural gas price per Mcf for the quarter ended June 30, 2026 was $0.60, a 74% decrease versus the comparable prior period. source
- As of June 30, 2026, the Company had open basis swap contracts that purchased Waha and sold NYMEX Henry Hub on approximately one-third of its firm transport capacity for 2026. source
- Crude oil prices realized during the first six months of 2026 averaged $87.89 per barrel, compared to $69.72 per barrel in the comparative prior-year period (a 26% increase). source
- The Company elected not to designate any of its derivative contracts as cash flow hedges. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | realized | -2.8% | A 74 percent decrease in average realized natural gas prices decreased Q2 2026 natural gas revenues by $135 million compared to Q2 2025,… |
| revenue | negative | realized | -0.2% | A 74 percent decrease in average realized natural gas prices decreased Q2 2026 natural gas revenues by $135 million compared to Q2 2025,… |
| cash | unclear | committed | — | As of June 30, 2026, the Company had derivative natural gas basis swap contracts for July—December 2026 of 45,080 (in 000's MMBtu) with a… |