APA (APA) is expected to deliver a steady Q3, with operations holding firm across its energy portfolio and exploration plans in Alaska, Suriname and Uruguay becoming a key focus for 2027, UBS Securities said Sunday in a report.

UBS forecast Q3 EBITDA of $1.66 billion, above the Wall Street estimate of $1.57 billion, with total reported production of about 440,000 barrels of oil equivalent per day. The firm raised its 2027 and 2028 adjusted forecasts for EBITDAX, which includes exploration expenses, citing "improved operational performance and financial strength."

APA continues to demonstrate "strong Permian execution, maintaining production with a lean activity profile while preserving capital efficiency" despite inflation pressures, UBS said. Capital spending in 2027 is expected to increase by about $300 million to $400 million from $2.1 billion in 2026, with 75% of the increase directed to Alaska, Suriname and Uruguay, the report said.

Q3 results are expected Nov. 5.

UBS increased its price target on APA stock to $52 from $47 and maintained its neutral rating,

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