Highlights

  • APA finalised agreements on 30 September 2026 to acquire an 80% interest in the 400MW Brigalow Peaking Power Plant in Queensland.
  • APA expects to contribute approximately $1,015 million toward the $1,269 million project cost using existing Balance Sheet capacity.
  • The project is supported by a 25-year inflation-linked hedge offtake agreement and is targeted for completion in early 2029.
  • FY26 underlying EBITDA increased 8.3% to $2,183 million, while Free Cash Flow rose 3.2% to $1,118 million.
  • FY27 underlying EBITDA guidance is $2,260 million to $2,340 million, with distributions expected at 59.0 cents per security.

APA Group (ASX:APA) is an Australian energy infrastructure Business with gas transmission, electricity generation, renewable energy and transmission assets. Its 2026 disclosures show a business combining established infrastructure Earnings with a larger development pipeline, highlighted by the Brigalow Peaking Power Plant agreement and FY26 growth in underlying EBITDA and free cash flow.

Brigalow Adds Contracted Generation Capacity

APA announced on 30 September 2026 that it had executed full-form agreements to acquire an 80% interest in the Brigalow Peaking Power Plant beside the Kogan Creek Power Station near Chinchilla, Queensland. The 400MW gas-fired Facility has an expected total project cost of $1,269 million, with APA contributing about $1,015 million and retaining responsibility for project delivery. CS Energy will hold the remaining 20% interest and operate and maintain the plant after completion.

The project is supported by an inflation-linked, 25-year hedge offtake agreement, which is designed to limit APA's exposure to wholesale electricity prices while retaining a small variable-revenue component. APA is also delivering a gas lateral and storage pipeline connecting Brigalow to its Roma to Brisbane Pipeline. Early works are complete, and project completion is targeted for early 2029.

FY26 Earnings and Cash Flow

For the year ended 30 June 2026, APA (ASX:APA) reported underlying EBITDA of $2,183 million, up 8.3%, and an underlying EBITDA Margin of 77.9%. Free Cash Flow increased 3.2% to $1,118 million, while statutory Revenue excluding pass-through revenue rose 1.9% to $2,764 million. Statutory net profit after tax increased 81.4% to $234 million.

APA (ASX:APA) also reported $80 million of enterprise-wide cost reductions during FY26, ahead of its $50 million target. Total FY26 distributions were 58.0 cents per security, including a final distribution of 30.5 cents per security. The company invested $546 million in growth projects during the year, including Brigalow, its associated pipeline, East Coast Gas Grid expansion work and the Sturt Plateau Pipeline.

FY27 Guidance and Growth Pipeline

APA has guided to FY27 underlying EBITDA of $2,260 million to $2,340 million. The company expects this to be supported by inflation-linked Tariff escalation, contributions from the Sturt Plateau Pipeline, the conversion of Basslink to a regulated asset and the annualised benefit of cost reductions. FY27 distributions are expected to be 59.0 cents per security.

Its organic growth development pipeline was approximately $3.5 billion at the FY26 result, covering projects planned across FY27 to FY29. Brigalow is part of that pipeline. APA has stated that it expects to fund planned Investment through existing balance sheet capacity and its Distribution Reinvestment Plan, while continuing to manage Credit metrics.

Key Insights

APA's 2026 disclosures show a strategy centred on contracted and regulated infrastructure, with Brigalow extending the group further into dispatchable power generation. FY26 earnings growth, cost reductions and free cash flow provide financial context for the larger project pipeline, while FY27 guidance sets measurable near-term benchmarks. Execution on major projects, funding discipline and delivery against the stated EBITDA range remain central operational factors.