APA Beats Estimates on Higher Oil Prices Amid Geopolitical Tensions

Oil and gas producer APA Corporation beat Wall Street estimates for second-quarter profit, thanks to higher oil prices. The company's realized price for each barrel of oil produced rose significantly from a year ago, averaging at $98.24.

The increase in oil prices was largely driven by the ongoing U.S.-Israeli conflict with Iran, which has raised concerns about disruptions to Middle East oil supplies and shipping through the Strait of Hormuz. As a result, benchmark Brent crude prices surged 19.2% from a year earlier to average at $89.62 per barrel during the quarter.

APA's quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day (boepd), due to lower volumes from its U.S., Egypt, and North Sea operations.

The company expects to achieve around $500 million in annualized savings by the end of 2026, up from its earlier target of $450 million. APA also increased its full-year U.S. oil production forecast to 123,000 bpd from 122,000 bpd.