APA (APA) risk factors, FY2025 10-K

APA's FY2025 10-K, filed Feb 26, 2026, lists 39 risk factors in 8 groups. Against the prior year's 37: 5 new, 3 dropped, 14 substantially reworded.

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Risk factors listed
398 groups
New this year
5vs 37 last year
Dropped
3since the prior 10-K
Substantially reworded
14of those kept
Section length
9k wordsItem 1A

What the changes say

  • APA Corp updated its risk profile to reflect lower oil and gas price ranges for 2025 compared to 2024.
  • The company added explicit disclosures regarding frontier exploration risks in Alaska, Suriname, and Uruguay.
  • Financial risks in Egypt were expanded to include foreign currency shortages and potential restrictions on fund repatriation.

What changed since the prior 10-K

New

  • NewRISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION

    Public health events, workforce disruptions, or similar global or regional events have previously and may in the future adversely impact the Company’s business, financial condition, and results of operations

    Public health events and workforce constraints could cause financial volatility and reduce global demand and prices for oil, natural gas, and NGLs.

  • NewRISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS

    Frontier exploration and development projects, including those in new or re-entered jurisdictions, involve heightened operational, regulatory, and execution risks that could adversely affect the Company’s results of operations and financial condition

    Frontier exploration projects in Alaska, Suriname, and Uruguay carry high operational, permitting, and legal risks that could lead to asset write-downs.

  • NewRISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

    amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stock

    Activism and unfavorable ESG ratings could limit capital access, increase borrowing costs, and depress common stock prices.

  • NewRISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS

    Changes to laws, regulations, guidance, and industry standards, or interpretations thereof, or higher than anticipated costs for asset retirement and decommissioning obligations could adversely affect the Company’s results of operations and cash flows

    Decommissioning liabilities and asset retirement obligations in locations like the North Sea may face stricter rules and higher financial assurance costs.

  • NewRISKS RELATED TO CLIMATE CHANGE, ENERGY TRANSITION, AND ESG MATTERS

    The impacts of climate change, energy transition policies, and ESG-related initiatives could adversely affect the Company’s business, operating results, and financial condition

    Shifting energy preferences and demand for lower-emission products like electric vehicles could reduce demand and prices for the company's hydrocarbons.

Dropped

  • DroppedRISKS RELATED TO PRICING, DEMAND, AND PRODUCTION FOR CRUDE OIL, NATURAL GAS, AND NGLs

    Global pandemics have previously, may continue to, and may in the future adversely impact the Company’s business, financial condition, and results of operations; the global economy; the demand for and prices of oil, natural gas, and NGLs; and the performance of the Company’s workforce

  • DroppedRISKS RELATED TO CLIMATE CHANGE

    The impacts of energy transition could adversely affect the Company’s business, operating results, and financial condition

  • DroppedRISKS RELATED TO CLIMATE CHANGE

    development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services

Reworded

  • 70% rewrittenRISKS RELATED TO INTERNATIONAL OPERATIONS

    A deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business

    Added risks of new taxes, fees, levies, and fund transfer limitations in Egypt alongside prior foreign currency shortages.

    Was: A further deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business

  • 70% rewrittenRISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

    The Company’s ability to declare and pay dividends, and to repurchase common stock, is subject to limitations

    Added a specific warning that any downward revision in dividends or share repurchases could adversely affect common stock prices.

  • 65% rewrittenRISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION

    The Company’s commodity price and other risk management and trading activities, including interest rate and foreign exchange hedging, and contracts priced in foreign currencies may prevent it from benefiting fully from price increases and market movements and may expose it to other risks

    Expanded hedging and derivative risks to include interest rates, foreign exchange contracts, and foreign currency conversion expenses.

    Was: The Company’s commodity price risk management and trading activities may prevent it from benefiting fully from price increases and may expose it to other risks

  • 55% rewrittenRISKS RELATED TO INTERNATIONAL OPERATIONS

    The Company’s operations are sensitive to currency rate fluctuations

    Added the Egyptian pound to the primary currency rate fluctuation sensitivities alongside the U.S. dollar and British pound.

  • 43% rewrittenRISKS RELATED TO INTERNATIONAL OPERATIONS

    International operations have uncertain political, economic, and other risks

    Updated international reserve figures for 2025 showing 26 percent of proved reserves outside the U.S.

  • 38% rewrittenRISKS RELATED TO CLIMATE CHANGE, ENERGY TRANSITION, AND ESG MATTERS

    Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact the Company’s business

    Softened U.S. greenhouse gas regulation language by noting federal focus was more active in previous periods.

  • 32% rewrittenRISKS RELATED TO COUNTERPARTIES AND JOINT VENTURES

    The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations

    Added specific risks that joint venture and joint operating partners may be state-owned entities with conflicting governmental priorities.

  • 32% rewrittenRISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION

    Crude oil, natural gas, and NGL prices and their volatility could adversely affect the Company’s operating results and the price of APA’s common stock

    Updated 2025 NYMEX commodity price ranges, showing oil dropping to a low of $55.44 and natural gas to $2.65.

  • 32% rewrittenRISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS

    The Company has previously not realized, and may in the future not realize, an adequate return on wells that it drills

  • 30% rewrittenRISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS

    Proposed federal, state, or local regulation regarding hydraulic fracturing could increase the Company’s operating and capital costs

  • 30% rewrittenRISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS

    Changes in tax rules and regulations, or interpretations thereof, may adversely affect the Company’s business, financial condition, and results of operations

  • 29% rewrittenRISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS

    Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects

  • 28% rewrittenRISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

    A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital

  • 22% rewrittenRISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

    Market conditions may restrict the Company’s ability to obtain funds for future development and working capital needs, which may limit its financial flexibility

All 39 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION

  1. 01Crude oil, natural gas, and NGL prices and their volatility could adversely affect the Company’s operating results and the price of APA’s common stock32% rewritten
  2. 02The Company’s commodity price and other risk management and trading activities, including interest rate and foreign exchange hedging, and contracts priced in foreign currencies may prevent it from benefiting fully from price increases and market movements and may expose it to other risks65% rewritten
  3. 03Public health events, workforce disruptions, or similar global or regional events have previously and may in the future adversely impact the Company’s business, financial condition, and results of operationsNew

RISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS

  1. 04The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents
  2. 05The Company has previously not realized, and may in the future not realize, an adequate return on wells that it drills32% rewritten
  3. 06Frontier exploration and development projects, including those in new or re-entered jurisdictions, involve heightened operational, regulatory, and execution risks that could adversely affect the Company’s results of operations and financial conditionNew
  4. 07The Company’s insurance policies do not cover all of the risks the Company faces, which could result in significant financial exposure
  5. 08A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations
  6. 09Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects29% rewritten

RISKS RELATED TO RESERVES, ESTIMATES, AND LEASEHOLDS

  1. 10Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production
  2. 11The Company may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves
  3. 12Crude oil, natural gas, and NGL reserves are estimates, and actual recoveries may vary significantly
  4. 13Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage

RISKS RELATED TO COUNTERPARTIES AND JOINT VENTURES

  1. 14The credit risk of financial institutions could adversely affect the Company and result in a significant loss
  2. 15The Company’s liabilities, including for the decommissioning of previously owned assets, could be adversely affected in the event one or more of its transaction counterparties are financially distressed or become the subject of a bankruptcy case
  3. 16The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations32% rewritten

RISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

  1. 17A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital28% rewritten
  2. 18Market conditions may restrict the Company’s ability to obtain funds for future development and working capital needs, which may limit its financial flexibility22% rewritten
  3. 19The Company’s ability to declare and pay dividends, and to repurchase common stock, is subject to limitations70% rewritten
  4. 20amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stockNew
  5. 21The Company faces strong industry competition that may have a significant negative impact on the Company’s results of operations
  6. 22The Company’s ability to utilize net operating losses and other tax attributes to reduce future taxable income may be limited if the Company experiences an ownership change
  7. 23The Company’s ability to realize its deferred tax assets may be limited if it experiences changes in expected future cash flows related to reserves or ARO
  8. 24APA is a holding company and is dependent on the operations of and distributions from its subsidiaries, including Apache

RISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS

  1. 25The Company may incur significant costs related to environmental matters
  2. 26The Company’s U.S. operations are subject to governmental risks
  3. 27Proposed federal, state, or local regulation regarding hydraulic fracturing could increase the Company’s operating and capital costs30% rewritten
  4. 28Changes in tax rules and regulations, or interpretations thereof, may adversely affect the Company’s business, financial condition, and results of operations30% rewritten
  5. 29Changes to laws, regulations, guidance, and industry standards, or interpretations thereof, or higher than anticipated costs for asset retirement and decommissioning obligations could adversely affect the Company’s results of operations and cash flowsNew

RISKS RELATED TO CLIMATE CHANGE, ENERGY TRANSITION, AND ESG MATTERS

  1. 30The impacts of climate change, energy transition policies, and ESG-related initiatives could adversely affect the Company’s business, operating results, and financial conditionNew
  2. 31Weather and climate may have a significant adverse impact on the Company’s revenues and production
  3. 32Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact the Company’s business38% rewritten
  4. 33Enhanced focus on ESG matters could have an adverse effect on the Company’s operations
  5. 34The Company’s estimates used in various scenario planning analyses could differ materially from actual results and could expose the Company to new or additional risks
  6. 35The treatment and disposal of produced water is becoming more highly regulated and restricted and could expose the Company to additional costs or limit certain operations

RISKS RELATED TO INTERNATIONAL OPERATIONS

  1. 36International operations have uncertain political, economic, and other risks43% rewritten
  2. 37A deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business70% rewritten
  3. 38The Company’s operations are sensitive to currency rate fluctuations55% rewritten
  4. 39Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover

Other APA 10-Ks

  • FY2024 10-K risk factors
    37 risks

    APA's risks are heavily concentrated on volatile commodity prices, operational and geopolitical exposures in Egypt and the U.K., and regulatory shifts related to environmental and energy transition pressures.

    Filed Feb 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.