APA · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

APA Corp · 2026-08-06 · Importance 29 · Surprise 24

APA holds approximately 750,000 MMBtu per day of firm pipeline capacity in the Permian Basin. Extreme Waha basis differentials, including periods of negative pricing, constrained gas markets and led APA to increase Alpine High volume curtailments. The company reduced natural gas production to avoid selling into uneconomic or negative-price markets, while negative Permian gas prices generated net proceeds of $122 million in the second quarter and $47 million in the first six months of 2026. The same negative basis differentials also contributed to lower NGL production through increased curtailments.

Key facts

• The Company uses a diversified group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions and, as of June 30, 2026, had derivative positions with counterparties (number redacted). source
• APA holds approximately 750,000 MMBtu/d of firm capacity on various pipelines in the Permian Basin. source