APA Earnings: Production Beat Plus Progress on Suriname

APA’s third-quarter results were slightly above our expectations, as production was 412,000 barrels of oil equivalent a day, a bit better than our 407,000 boe/d forecast. This was primarily attributable to strength in the Permian as well as the North Sea. After refreshing our model for the latest oil and gas prices as well as third-quarter results, our fair value estimate moves up to $56 per share from $55, while our no-moat rating is unchanged. We continue to think that Suriname's potential is mispriced by investors and that APA remains very undervalued.