APA Corp. targets $700M annual cost cuts by 2027 and over 5% oil growth for next three years, with Suriname project set for mid-2028 start
APA Corp. expects approximately $700 million in lower annual cash costs by 2027, including $500 million in structural savings and $175 million in reduced interest expense. The company aims for more than 5% compound annual oil growth over the next three years, primarily driven by the Gran Morgu offshore Suriname project. This project, a 50/50 partnership with TotalEnergies, is anticipated to begin production in mid-2028 with a 220,000-barrel-per-day floating production, storage, and offloading (FPSO) vessel and a projected breakeven of $30 per barrel. Additionally, APA forecasts its 2026 Permian production at 123,000 barrels per day and expects gas-trading operations to generate $950 million in cash flow this year. The company's 2026 capital budget is $2.1 billion, with plans to end the year with debt near $3 billion.
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