APA · 10-Q · 2026Q3 · Full report
Operating Expense Trends
APA Corp · 2026-11-05 · Importance 54 · Surprise 40 · In source text
Total operating expenses were $4.119 billion in the first nine months of 2026, down from $4.940 billion in the comparable 2025 period, primarily reflecting a $783 million reduction in purchased oil and gas costs and a $125 million reduction in DD&A. Purchased oil and gas costs fell as Permian gas was purchased at lower prices, including negative realized prices, and certain third-party contracts expired; lease operating expenses declined $17 million year over year because of non-core asset sales and cost reductions. G&A increased $36 million in the first nine months, driven by higher cash-based stock compensation, while exploration expense rose $40 million, primarily due to higher Egypt dry-hole expense; transaction, reorganization, and separation costs declined $46 million.
Key facts
- APA’s purchased oil and gas costs increased $42 million in third-quarter 2026 and decreased $783 million in the first nine months of 2026 compared with 2025. source
- APA reported lease-operating expenses up $42 million in third-quarter 2026 and down $17 million for the first nine months versus 2025; per-unit LOE increased 14 percent and 6 percent, respectively. source
- APA’s total DD&A expenses decreased $9 million in third-quarter 2026 and $125 million in the first nine months of 2026 compared with 2025. source
- APA’s exploration expenses increased $29 million in third-quarter 2026 and $40 million in the first nine months of 2026 versus 2025, primarily due to higher dry-hole expense in Egypt. source
- APA’s general and administrative expenses increased $17 million in third-quarter 2026 and $36 million in the first nine months of 2026 versus 2025, driven by higher cash-based stock compensation, partly offset by personnel and overhead cost-reduction effects. source
- APA’s gathering, processing, and transmission costs decreased $6 million in third-quarter 2026 and $36 million in the first nine months of 2026 compared with 2025. source
- APA’s taxes other than income increased $15 million in third-quarter 2026 and $5 million in the first nine months of 2026 compared with 2025. source
- No suspended exploratory well costs capitalized for greater than one year at December 31, 2025 were charged to dry hole expense during the first nine months of 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +10.5% | APA’s purchased oil and gas costs increased $42 million in third-quarter 2026 and decreased $783 million in the first nine months of 2026… |