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Earnings Highlights APA, CIVI, CHRD, HP, OXY, TALO, & VTLE

 

Apache Corporation (APA)

Apache exceeded Q2 2025 reported production guidance in all three operating regions while delivering global upstream capital expenditures in line with guidance. Apache initiated its planned Permian rig count reduction from eight to six during the second quarter due to a step change increase in drilling efficiencies. The company now expects to keep Permian volumes flat with six rigs, down from six and a half rigs mentioned in May 2025.

In the Permian, the company exceeded production guidance while reducing rig counts by 25% due to continued efficiency gains in the field. Full year 2025 US production guidance is unchanged from the prior reporting quarter after adjusting for asset sales. 

Civitas Resources (CIVI)

Q2 2025 results exceeded expectations, with strong operating performance including higher than expected oil production and lower than expected capital and operating costs.

The company is on track with cost optimization and capital efficiency efforts, targeting $40 million in savings in 2025 and $100 million in 2026. Year-to-date, Civitas has improved field-level execution. Average daily oil volumes increased six percent from the first quarter, almost entirely from the Permian Basin as a result of new wells commencing production in the first half of the year.

Capital expenditures were at the low end of expectations, benefiting from well cost optimization, capital efficiencies, and activity timing adjustments.

For Q3 2025, Civitas anticipates more than five percent oil volume growth, with both the Permian and DJ Basins showing meaningful increases. Permian Basin production is anticipated to maintain high levels in the fourth quarter while the DJ Basin is reduced primarily as a result of the non-core divestitures.

Full year total production guidance is unchanged from the prior reporting quarter. Oil guidance is revised higher and NG and NGL guidance is revised lower from the prior reporting quarter.

Chord Energy (CHRD)

Chord delivered net cash provided by operating activities and adjusted free cash flow above expectations, driven by efficient execution and strong asset performance. The company drilled four 4-mile laterals to date with costs below budget. Chord is now accelerating 4-mile activity and now is on track to turn-in-line ("TIL") seven 4-mile laterals in 2025.

Chord raised full year 2025 oil production guidance and reduced capital expenditures by -$20MM at the midpoint of guidance. Chord Energy is on schedule to return a second completion crew in Q4 2025.

Production volumes exceeded the high-end of guidance. Full year 2025 NG production guidance is revised higher from the prior reporting quarter.

Helmerich & Payne (HP)

HP expects a slight reduction in activity during its fiscal 4th quarter (calendar 3rd quarter). Oil and natural gas will remain central to the global energy landscape, and HP is optimistic about the sector's long-term prospects.

The company had 141 active rigs in North America at the end of June 2025. HP expects its average rig count in fiscal 4th quarter (calendar 3rd quarter) to be between 138-144 contracted rigs.

Occidental Petroleum (OXY)

Total company production for Q2 2025 was above the mid-point of guidance. Oxy continues to have well performance leadership and a focus on enhanced operational efficiencies.

Compared to 2023, Oxy is 20% more efficient on rig hours per job. First half of 2025 Delaware Basin drilling duration per well improved 20% compared to 2024, supporting a 14% reduction in well costs.

Talos Energy (TALO)

Talos Energy’s improved full-year 2025 guidance reflects higher production, lower operating expenses and lower capital expenditures.

The company’s strong performance enabled it to repurchase 3.8 million shares for approximately $33 million. Talos resumed drilling operations at the Daenerys prospect, with results anticipated by the end of the third quarter of 2025.

Q2 2025 production was above the high end of midpoint guidance, especially for natural gas. Full year 2025 natural gas production is revised higher from the prior reporting quarter.

Vital Energy (VTLE)

Vital Energy commenced production on the company's first two J-Hook wells. The wells will convert 135 straight 10,000’ wells to 90 J-Hook 15,000’ laterals, lowering expected WTI breakeven costs by $5 per barrel.

The company is on schedule to TIL all 38 second-half 2025 wells by early October 2025. The planned completion of 38 wells in late third quarter/early fourth quarter is expected to meaningfully increase production volumes.

Full year 2025 production guidance is revised higher from the prior reporting quarter.