APA Corporation

Good day, and thank you for standing by. Welcome to the APA Corporation Fourth Quarter and Full Year 2025 Financial and Operational Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stephan Aka, Managing Director of Investor Relations. Please go ahead.

Good morning, and thank you for joining us on APA Corporation's fourth quarter and full year 2025 Financial and Operational Results Conference Call. We will begin the call with an overview by CEO John Chrisman. Steve Reine, President, will then provide an update on our Permian inventory, and Ben Rogers, CFO, will share further color on our results and outlook. Tracy Henderson, Executive Vice President of Exploration, is also on the call and available to answer questions. We will start the call with prepared remarks and allocate the remainder of time to Q&A. In conjunction with yesterday's press release, I hope you have had the opportunity to review our financial and operational supplement, which can be found on our investor relations website at investor.apacorp.com. Please note that we may discuss certain non-GAAP financial measures. A reconciliation of the differences between these measures and the most directly comparable GAAP financial measures can be found in the supplemental information provided on our website. Consistent with previous reporting practices, adjusted production numbers cited in today's call are adjusted to exclude non-controlling interests in Egypt and Egypt tax barrels. I'd like to remind everyone that today's discussion will contain forward-looking estimates and assumptions based on our current views and reasonable expectations. However, a number of factors could cause actual results to differ materially from what we discuss in today's call. A full disclaimer is located with the supplemental information on our website. And with that, I will turn the call over to John.

Good morning, and thank you for joining us. On today's call, I will review our four-year 2025 results, outline our continued progress across key strategic initiatives, and discuss our outlook and plans for 2026. 2025 was a highly successful year for APA, defined by continued progress against our strategic priorities and strong execution across our asset base. We entered the year with a clear objective to materially reduce our overall cost structure, part of which was to make significant further strides in terms of operational excellence. We set a goal to reduce our controllable spend by $350 million on a run rate basis by the end of 2027 without compromising safety, asset integrity, or our commitment to exploration. Through the dedication of our employees and strong leadership alignment, We exceeded this target over a significantly shorter time frame and have line of sight to exiting 2026 at a $450 million run rate. Ben will provide more details on this topic. During the year, we also met or exceeded oil production guidance in the Permian every quarter in 2025 on a lower than planned capital budget. In addition, we also made significant progress on a comprehensive assessment of our Permian Basin inventory, incorporating our improved cost structure. This effort confirmed the depth and quality of our drilling opportunities and validated substantial upside potential. Additionally, it increased our confidence in sustaining long-term oil production while delivering competitive capital efficiency. Steve will provide further color on our Permian inventory position shortly. Moving to Egypt, our focused activity under the new gas pricing framework drove meaningful production growth, establishing the foundation for a sustained multi-year strategic focus. On the oil side, strong reservoir management through targeted water flow activity has helped stabilize gross volumes over the past three quarters. In Suriname, our partner, Total, continues to execute at a high level as we advance toward a mid-2028 first oil date. On the exploration front, our sockeye discovery in Alaska further confirmed the prospectivity of our approximately 325,000 acre position, providing a strong basis for future exploration and appraisal activity. In summary, The disciplined execution across our asset base and strong delivery of our cost reduction initiatives drove more than $1 billion in free cash flow generation in 2025, of which we returned approximately $640 million to shareholders. We also significantly strengthened our balance sheet, ending the year with less than $4 billion in net debt. Turning to 2026, our strategic priorities are clear and our capital plan is disciplined. We will sustain operational momentum, further reduce our cost structure, continue strengthening our balance sheet, and invest in the future through exploration. In the United States, our $1.3 billion capital program is designed to maintain relatively flat oil production year-over-year at approximately 120,000 to 122,000 barrels per day, despite significant weather-related downtime in the first quarter. This represents an improvement relative to our preliminary outlook discussed in November, reflecting continued gains in operational and capital efficiency. In Egypt, we will invest approximately $500 million to slightly grow BOE production year over year. As our activity becomes increasingly gas-weighted, gross oil production is expected to decline slightly, while gross gas volumes continue on a growth trajectory year over year. After just one year of focused, successful gas drilling, we now have visibility into a runway of new development inventory and near-field exploration opportunities. This has laid the foundation to support continued growth and we expect to deliver approximately 540 to 550 million cubic feet per day this year. This volume outlook includes a minor impact from our withdrawal from a small non-core concession, which Ben will address shortly. Under our new pricing framework, increased gas production strengthens free cash flow and further establishes Egypt as a key value driver within our portfolio. For the Grand Morgue development in Suriname, we will allocate approximately $230 million in capital. On the exploration front, we are investing approximately $70 million to advance high-impact opportunities across our portfolio. This includes a return to exploration drilling in Suriname Block 58 in the fourth quarter and planning and readiness spend ahead of an active first quarter 2027 drilling season in Alaska. In aggregate, our total portfolio spend is $2.1 billion, roughly 10% lower than last year. This plan is operationally manageable and preserves flexibility to scale activity in response to commodity price movements. In closing, the progress we delivered in 2025 reflects a fundamental transformation of APA's base business over the past several years. We have high graded the portfolio significantly reduced our cost structure, strengthened the balance sheet, and further advanced our exploration efforts, resulting in a more focused, resilient, and capital-efficient company. These actions have translated into stronger free cash flow generation and a structurally more competitive asset base in both the Permian and Egypt. In the Permian, we have enhanced returns through disciplined capital allocation and significant efficiency gains. while building depth and durability in our inventory, which is expected to sustain oil production and deliver competitive capital efficiency for the next decade. In Egypt, we continue to strengthen asset durability through both commercial and operational initiatives. This includes a focused gas strategy supported by an improved pricing framework that complements our established oil base. Our high-quality development and near-field exploration program is expected to drive gas growth and support a strong long-term outlook. Together, the strength of these base businesses form the foundation for sustained free cash flow generation for the next several years. Starting in 2028, the addition of SIRLOM will provide a meaningful step change and continued growth in free cash flow through at least the early 2030s. I will now turn it over to Steve, who will provide more details on our Permian inventory. Thank you, John.