APA Beats Estimates as Higher Crude Prices Offset Production Decline

APA, an oil and gas producer based in Houston, Texas, beat Wall Street estimates for its second-quarter profit. The company's realized price for each barrel of oil produced rose to $98.24 from $65.58 a year ago, driven by higher crude prices due to the ongoing U.S.-Israeli conflict with Iran.

The conflict has pushed benchmark Brent crude prices up 19.2% from a year earlier to average at $89.62 a barrel during the quarter. APA's quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day (boepd), but the company increased its full-year U.S. oil production forecast to 123,000 bpd.

APA also reported paying down $2.3 billion of debt since year-end 2024, resulting in annualized interest savings of more than $155 million. The company expects to achieve about $500 million in annualized savings by the end of 2026 as it broadens cost-reduction measures.