APA's 2Q call highlighted a materially stronger Permian outlook driven by operational efficiency rather than higher spending. Management now expects to sustain 123 Mb/d of Permian oil production with just four rigs for the remainder of 2026, versus the original post-Callon expectation that eight rigs and roughly $1.7 billion of capital would be needed to hold ~120 Mb/d flat. The company also reiterated that its inventory now supports more than 10 years of flat production, with ongoing work to convert additional technical locations into economic inventory (see graph below). Management emphasized that future performance should be measured less by rig count and more by lateral feet drilled and wells completed, as drilling productivity continues to improve.
Featured Articles
Q1 2026 Earnings Calls: APA Spotlights Natural Gas Opportunities
APA Spotlights Natural Gas Opportunities
APA Playing the Long Game
On their 4Q and full-year 2025 earnings call, APA outlined a 3-pronged approach to driving value; high-grading their portfolio, reigning in costs, and developing additional drilling prospects.
Diamondback Energy Holds Production Steady While Keeping Costs in Check
Diamondback Energy is holding oil production flat through the end of 2025, citing an uncertain crude market and confidence in its low-cost Midland Basin inventory. The company continues to drive efficiency gains, cutting well costs back to 2020 levels and accelerating completions with its new “continuous pumping” technique. At the same time, Diamondback is reducing its exposure to Waha-indexed gas prices by adding new pipeline capacity and exploring in-basin power projects that would create new demand for its natural gas.
