APA Corporation — May 7, 2025 release

Overhead savings are also being realized at a faster pace than previously anticipated, enabled by structural changes to simplify business operations. Total realized savings on controllable spend for 2025 are now expected to be $130 million, more than double previous estimates. On a run-rate basis, the company now targets $225 million by the end of the year, up from a prior range of $100-$125 million. “We have achieved substantial capital savings, particularly due to efficiency gains in Permian drilling, and are also making good progress on both completions and facilities,” said John J. Christmann IV, APA’s CEO. “On the G&A front, we are streamlining our organizational structure and reducing discretionary third-party spend, as we simplify how we manage our assets.” Second-Quarter and Full-Year update Improved efficiencies and reduced activity will lower the company's 2025 development capital by $150 million. Combined with a $25 million reduction in exploration capital, these steps will protect free cash flow amidst volatile commodity prices. As the company integrated the Callon acquisition, activity was reduced to 8 rigs, a level capable of maintaining oil volumes in the Permian. With confidence in captured operating efficiencies, APA now expects to hold Permian oil volumes sustainably flat with 6.5 rigs. Given current market conditions the company is in the process of reducing activity to 6 rigs by the end of the second quarter and adjusting its completion schedule to align with this cadence. For 2025, APA is