APA Corporation raised its full-year U.S. oil production guidance to 123,000 barrels per day from 120,000 while keeping capital spending at $1.3 billion, and increased its annualized run-rate cost-savings target to $500 million from $450 million. The company expects to average 4.5 rigs in the Permian for the rest of 2026, down from an earlier estimate of eight rigs needed to sustain similar output after the Callon integration. APA also guided for $2.3 billion of free cash flow in 2026 at current strip pricing and reaffirmed its commitment to return at least 60% of annual free cash flow through dividends and buybacks, with repurchases set to increase in the second half. The pending Savant Alaska acquisition will add infrastructure adjacent to APA's acreage for $70 million upfront plus contingent payments, while the planned Uruguay Block 6 well will test deeper Cretaceous objectives in late 2027 with APA holding a 60% working interest. CEO John Christmann said the GranMorgu project remains on budget and on schedule for first oil in mid-2028.
APA CorporationAPA raised production guidance, increased cost-savings target, and reaffirmed shareholder returns, boosting financial outlook.
