APA Corp "Takeaways From CEO Dinner" (Neutral) Silverstein

Research evidence excerpt

APA Corp "Takeaways From CEO Dinner" (Neutral) Silverstein

laska assets and development many not need fracing, Q1 1.38 1.38

reducing project costs. The recently acquired Badami facility will also support Q2E 2.49 2.12

economics and potential year-round activity. Q3E 1.63 1.64

Q4E 1.64 1.37

Suriname. Suriname remains a key growth driver and positive differentiator for 12/26E 7.14 6.48

APA. GranMorgu remains on track for mid-2028. The FPSO capacity is 220mbopd, 12/27E 6.32 4.28

although there will likely be some de-bottlenecking opportunities. Exploration 12/28E 6.61 4.75

activity in the block is ongoing, primarily in shallow water, with the potential for Josh Silverstein

tie-in development. Analyst

josh.silverstein@ubs.com

Egypt. Egypt continues to trend well for APA. The country is working to reduce

+1-212-713 3513

its dependency on gas imports, aligning it with APA's efforts to grow gas volumes.

Exploration activity should provide long-term gas upside. The Egyptian Pound is Peyton Dorne

rising vs. the dollar, supporting the asset from a financial perspective as well. Analyst

peyton.dorne@ubs.com

Permian. APA reiterated its maintenance outlook despite the large swing in strip +1-212-713 4359

pricing QTD. On in-basin gas pricing, APA estimates that 2Bcfpd+ of gas is behind William Barber

the pipe/curtailed, so new Permian egress capacity in 2H26 will likely be filled Associate Analyst

quickly. Longer-term, the higher GOR of the play's emerging formations is seen as william.barber@ubs.com

supporting ample Permian gas supply growth. +1-212-713 5553

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 8,192 9,737 8,919 9,760 8,905 8,977 10,955 11,440

EBIT (UBS) 3,256 3,031 2,745 4,571 3,832 3,700 5,114 5,617