en.Wedoany.com Reported - Wedoany Net, APA Corporation raised its full-year 2026 Permian oil production guidance in its second-quarter earnings report released on August 6, now expecting annual production of 123,000 barrels per day, up from the previously anticipated 120,000 barrels per day. The company also announced that maintaining this production level requires only 4 rigs, half of the 8 rigs initially estimated after the Callon acquisition.

CEO John Christmann stated that improved drilling and completion efficiencies in the Permian Basin, along with stronger base production from existing wells, were the primary drivers behind the upward revision. APA President Stephen Riney revealed that the company originally planned to deploy 5 rigs at the start of the year, with a full-year average of 4.5 rigs, but these rigs will drill more lateral footage, achieving a completion count comparable to the original plan of 5 rigs. Management emphasized that future performance should not be measured solely by rig count, but rather by drilling footage and completion numbers.

On the cost front, APA lowered its full-year 2026 lifting operating expense guidance by $25 million to $1.5 billion. The company expects to achieve approximately $500 million in annualized run-rate cost savings by year-end, up from its previous target of $450 million. Drilling and completion costs have decreased by $50 per lateral foot since the first quarter. The company attributed the efficiency gains to optimized well designs, slim-hole drilling, simul-frac operations, and improvements in execution consistency.

Financially, APA reported second-quarter net income of $747 million, or $2.11 per diluted share. Second-quarter free cash flow totaled $738 million, with first-half cumulative free cash flow exceeding $1.2 billion. The company has repaid $752 million in debt during the first half of the year, reducing net debt by $2.3 billion to $3.3 billion since the end of 2024. APA expects to achieve its net debt target of $3 billion by 2027. The company also maintained its 2026 capital budget of $1.3 billion unchanged.

Additionally, APA's GranMorgu project in Suriname remains on track and within budget, with first oil expected by mid-2028.