APA Corporation (APA) AI Stock Analysis

APA Corporation, based in Houston, Texas, is an energy company focused on exploring, developing, and producing natural gas, crude oil, and natural gas liquids. Founded in 1954, it operates across the United States, Egypt, and the United Kingdom, alongside offshore exploration activities in Suriname. In addition to its upstream exploration and production portfolio, APA manages gathering, compression, processing, and transmission infrastructure in West Texas. The company also holds ownership interests in multiple long-haul pipelines in the Permian Basin to support hydrocarbon transport to market.

Revenue increased at a 5-year CAGR of 15.0% from FY2020 to FY2025, reaching $8.92B in FY2025 despite an 8.4% decline from $9.74B in FY2024. Operating margin stood at 30.8% in FY2025, compared to 32.9% in FY2024 and 45.9% in FY2022. Net income finished FY2025 at $1.43B, up from $804.0M in FY2024, yielding an EPS of $3.77. Over the trailing twelve months ended June 30, 2026, revenue stood at $8.57B with a net profit margin of 19.6% and an operating margin of 56.3%. In the latest quarter, revenue grew 9.2% year-over-year while earnings expanded 26.3%.

As of June 30, 2026, APA held $444.0M in cash and short-term investments against total debt of $3.88B, resulting in net debt of $3.44B. Shareholders' equity was $7.02B against total assets of $17.97B, translating to a debt-to-equity ratio of 0.55 and a current ratio of 0.95. In FY2025, the company generated $4.54B in operating cash flow and $1.78B in free cash flow. Capital expenditures totaled $2.77B, while capital returns included $280.0M in share buybacks and $360.0M in dividends paid.

APA trades at a trailing P/E of 10.4x and a forward P/E of 9.4x, both below the median of its S&P 500 Energy peers at 18.2x and 14.3x, respectively. Its enterprise value-to-EBITDA multiple is 3.4x, compared to the peer median of 8.4x, while its price-to-sales ratio is 2.0x versus the peer median of 2.4x. Over the past year, APA shares generated a return of 121.1%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock gained 116.8% compared to 83.0% for the broader index.

APA pays an annualized forward dividend of $1.00 per share, representing a 2.03% dividend yield. The company distributes payments on a quarterly basis and maintains a payout ratio of 19.6%. APA has paid dividends for 45 consecutive years, delivering a 5-year annualized dividend growth rate of 25.2%. The last ex-dividend date was October 22, 2026.

Wall Street analysts hold 8 Strong Buy, 2 Buy, 15 Hold, 0 Sell, and 3 Strong Sell ratings on APA. The mean price target is $47.69, which sits 3.0% below the last close of $49.15. For the fiscal year ending December 31, 2026, analysts estimate EPS of $6.56 on revenue of $9.45B, representing 73.9% EPS growth. For the following fiscal year, 26 analysts project EPS to fall 24.1% to $4.98 on revenue of $8.50B. APA beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of APA Corporation (APA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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