APA · 10-Q · 2026Q2 · Full report

Exploration and Development Pipeline

APA Corp · 2026-08-06 · Importance 26 · Surprise 24

APA averaged five drilling rigs in the Permian Basin during the second quarter and brought 47 operated wells online, maintaining the core Permian development program as a key U.S. asset priority. In Egypt, APA averaged 12 drilling rigs, drilled 11 new productive wells, and operated 18 workover rigs while optimizing drilling and workover activity for capital efficiency. Approximately one-half of Egypt rig activity is expected to remain gas-focused, supported by strong performance and rising realized gas prices during the remainder of the year. Egypt also received a five-year extension covering approximately 3.4 million acres, with APA committing to drilling, seismic acquisition, and reprocessing, while its Uruguay offshore Block 6 exploration well is planned for 2027.

Key facts

• The Company’s capitalized exploratory well costs were $ (amount redacted) million as of June 30, 2026 and $ (amount redacted) million as of December 31, 2025, with the increase primarily attributable to additional drilling activity and partially offset by transfers and wells charged to dry hole expense in Egypt. source
• The Company expects approximately one-half of its rig activities in Egypt to continue to be gas-focused and anticipates realized gas prices increasing through the period for the rest of the year. source
• No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2025 were charged to dry hole expense during the first six months of 2026. source
• The Company brought online 47 operated wells during the second quarter of 2026. source
• Exploration expenses increased $15 million in Q2 2026 and $11 million for the first six months of 2026 compared to the same prior-year periods, primarily due to higher dry hole expense in Egypt. source
• The Company averaged five drilling rigs in the Permian Basin in the second quarter of 2026, including four rigs in the Southern Midland Basin and one rig in the Delaware Basin. source
• In Egypt, the Company averaged 12 drilling rigs and drilled 11 new productive wells during the second quarter of 2026 and averaged 18 workover rigs. source
• The Company operated an average of approximately 17 drilling rigs during the first six months of 2026, compared to an average of approximately 21 drilling rigs during the first six months of 2025. source