APA Corporation
APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The company has oil and gas operations in the United States, Egypt, and North Sea. It also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.
What does it do?
APA Corporation is an oil and gas company that drills for and produces crude oil, natural gas, and natural gas liquids — basically the raw fuels that power cars, homes, and industries. They operate in three main places: the Permian Basin in Texas, offshore in the North Sea between the UK and Norway, and onshore in Egypt through a long-running government partnership. They also have newer exploration bets in Suriname, a small South American country where they've made some promising offshore discoveries alongside TotalEnergies.
APA sits at the center of global energy supply at a time when oil prices are volatile and energy security is a top priority for governments worldwide. The Suriname offshore project could be a company-defining moment — if it gets developed, it would dramatically increase APA's oil reserves and production at a time when finding new large oil deposits is increasingly rare. With a market cap of $11 billion but $9.2 billion in annual revenue, the market is pricing in real skepticism, which creates both risk and opportunity.
How does it make money?
APA makes money by selling crude oil, natural gas, and natural gas liquids that it pumps out of the ground across its three operating regions. In the U.S., it focuses on the Permian Basin in Texas, one of the most productive oil fields in the world. In Egypt, it operates under a profit-sharing contract with the Egyptian government, meaning it splits revenues after costs are covered. The North Sea operations are older and more mature, generating steady but declining cash flow — APA brought in $9.2 billion in revenue last year, turning $1.4 billion of that into net profit.
Why do investors care?
The big story for investors is Suriname — APA and TotalEnergies have discovered significant offshore oil deposits that could unlock billions of barrels of new production if a final development decision is made. Investors who believe in that upside are essentially getting the existing cash-generating U.S. and Egypt businesses plus a potentially huge wildcard. What has to go right: oil prices need to stay above roughly $60-70 per barrel for the economics to work, Suriname development needs to get a green light and stay on budget, and APA needs to manage the natural decline in its North Sea assets.
Deep Dive
MemberA full investor briefing on APA Corporation — history, leadership, risks, and outlook.