APA : 1Q2023 Quarterly Results 2023 05 03

NEWS RELEASE

APA Corporation Announces First-Quarter 2023

Financial and Operational Results

Key Takeaways

• Reported production of 394,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 318,000 BOE per day;
• Generated net cash from operating activities of $335 million, adjusted EBITDAX of $1.3 billion, and free cash flow (FCF) of $272 million;
• Strong operational execution drove higher-than-expected 1Q adjusted oil production;
• Returned 81% of first quarter FCF to shareholders, reiterating commitment to minimum 60% capital return framework; and
• Announced reduction in 2023 capital investment by $100 million in response to lower Permian Basin natural gas prices; full-year capital budget now set at $1.9- to $2.0 billion.

HOUSTON, May 3, 2023 - APA Corporation (Nasdaq: APA) today announced its financial and operational

results for the first quarter of 2023.

APA reported net income attributable to common stock of $242 million, or $0.78 per diluted share.

When adjusted for items that impact the comparability of results, APA's first-quarter earnings were

$372 million, or $1.19 per diluted share. Net cash provided by operating activities was $335 million, and

adjusted EBITDAX was $1.3 billion. The company generated $272 million in free cash flow during the

quarter.

"APA began the year with strong operational performance and cost management," said John J.

Christmann IV, APA's CEO and president. "Our oil production exceeded expectations in the first quarter,

and we plan to focus on oil-driven activity. APA's diversified portfolio enables us to respond quickly to

changing commodity prices and market dynamics. Accordingly, we are reducing lean gas drilling activity

in the U.S. in response to weak Permian Basin natural gas pricing. In Suriname, appraisal work at

Krabdagu is progressing, and results thus far are in line with expectations."

First-Quarter Summary

First-quarter reported production was 394,000 BOE per day, and adjusted production, which excludes

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APA CORPORATION ANNOUNCES FIRST-QUARTER 2023

FINANCIAL AND OPERATIONAL RESULTS - PAGE 2 of 4

Egypt noncontrolling interest and tax barrels, was 318,000 BOE per day. APA's first-quarter upstream capital investment, lease operating expense, and general and administrative expense were below guidance.

Capital and Activity Update

APA is lowering full-year upstream capital investment guidance to $1.9- to $2.0 billion, with the entire $100 million decrease attributable to the reduction of lean gas activity in the Permian Basin. This change is not expected to have a material impact on 2023 U.S. production. Other capital activity for the year is unchanged, as the company plans to continue running an average of 17 drilling rigs in Egypt and five in the U.S. As previously disclosed, APA will release the Ocean Patriot semisubmersible drilling rig in the North Sea around midyear.

Conference Call

APA will host a conference call to discuss its first-quarter 2023 results at 10 a.m. Central time, Thursday, May 4. The conference call will be webcast from APA's website at www.apacorp.comand investor.apacorp.com. Following the conference call, a replay will be available for one year on the "Investors" page of the company's website.

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and the Dominican Republic. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Additional details regarding Suriname, ESG performance and other investor-related topics are posted at investor.apacorp.com.

Additional Information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow (non-GAAP financial measures) to GAAP measures and information

APA CORPORATION ANNOUNCES FIRST-QUARTER 2023

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regarding adjusted production. APA's quarterly supplement is available at http://www.apacorp.com/financialdata.

Non-GAAP Financial Measures

APA's financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "continues," "could," "estimates," "expects," "goals," "guidance," "may," "might," "outlook," "possibly," "potential," "projects," "prospects," "should," "will," "would," and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in APA's Form 10-K for the year ended December 31, 2022, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this

APA CORPORATION ANNOUNCES FIRST-QUARTER 2023

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news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Cautionary Note to Investors

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. APA may use certain terms in this news release, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2022 available from APA at www.apacorp.comor by writing APA at: 2000 Post Oak Blvd., Suite 100, Houston, TX 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC- 0330 or from the SEC's website at www.sec.gov.

Contacts
Investor:	[phone]	Gary Clark
Media:	[phone]	Alexandra Franceschi

Website:www.apacorp.com

-end-

APA CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except per share data)

		For the Quarter Ended
		March 31,
		2023			2022
REVENUES AND OTHER:
Oil, natural gas, and natural gas liquids production revenues
Oil revenues	$	1,397	$	1,717
Natural gas revenues		242			380
Natural gas liquids revenues		130			223
		1,769			2,320
Purchased oil and gas sales		239			349
Total revenues		2,008			2,669
Derivative instrument gain (loss), net		53			(62)
Gain on divestitures, net		1			1,176
Other, net		(32)			45
		2,030			3,828
OPERATING EXPENSES:
Lease operating expenses		321			344
Gathering, processing, and transmission		78			81
Purchased oil and gas costs		216			351
Taxes other than income		52			70
Exploration		52			42
General and administrative		65			156
Transaction, reorganization, and separation		4			14
Depreciation, depletion, and amortization:
Oil and gas property and equipment		325			278
Other assets		7			13
Asset retirement obligation accretion		28			29
Financing costs, net		72			152
		1,220			1,530
NET INCOME BEFORE INCOME TAXES		810			2,298
Current income tax provision		346			392
Deferred income tax provision (benefit)		138			(40)
NET INCOME INCLUDING NONCONTROLLING INTERESTS		326			1,946
Net income attributable to noncontrolling interest ‐ Egypt		84			119
Net income attributable to noncontrolling interest ‐ Altus		‐			14
Net loss attributable to Altus Preferred Unit limited partners		‐			(70)
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	242	$	1,883
NET INCOME PER COMMON SHARE:
Basic	$	0.78	$	5.44
Diluted	$	0.78	$	5.43
WEIGHTED‐AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		311			346
Diluted		312			347
DIVIDENDS DECLARED PER COMMON SHARE	$	0.25	$	0.125

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