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
- Analyst Insight
Q1 2026 Earnings Calls: APA Spotlights Natural Gas Opportunities
APA Spotlights Natural Gas Opportunities
- Analyst Insight
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.
- Analyst Insight
Q2 2026 Earnings Calls: Permian Technology Becomes ExxonMobil's Next Growth Lever
While ExxonMobil delivered another quarter of record Permian production at more than 1.8 MMboe/d, management made it clear that future value creation will depend less on adding volumes and more on improving recovery and capital efficiency.
