Each year, we reevaluate well productivity for our entire US shale coverage. For each covered company, we scrutinize third-party data on both a basin and region basis. As in prior years, our process prompted mostly modest valuation changes but left our moat, capital allocation, and uncertainty ratings unchanged.
The modernization of APA's production-sharing contract with the government in Egypt makes incremental investment more attractive and has turned a stable cash cow into a lucrative growth asset.
With operations in Egypt, the company is exposed to geopolitical risk in the Middle East. The Arab Spring in the early 2010s serves as an example of unrest.
|
Metric
|
APA
|
FANG
|
DVN
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.67 | 10.91 | 9.23 |
Price/Book Value | 3.70 | 2.18 | 2.77 |
Price/Sales | 1.21 | 4.37 | 2.21 |
Price/Cash Flow | 2.82 | 6.48 | 5.05 |
|
Metric
|
APA
|
FANG
|
DVN
|
|---|---|---|---|
Quick Ratio | 0.71 | 0.68 | 0.83 |
Current Ratio | 1.02 | 0.77 | 1.07 |
Interest Coverage | 9.79 | 25.26 | 13.38 |
|
Metric
|
APA
|
FANG
|
DVN
|
|---|---|---|---|
Return on Assets (Normalized) | 10.22% | 12.53% | 15.38% |
Return on Equity (Normalized) | 131.66% | 21.98% | 32.24% |
Return on Invested Capital (Normalized) | 21.40% | 15.63% | 21.67% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
COP
| ConocoPhillips | Sxqmffxplp | Jfhnnm | $152.4 Bil | |
EOG
| EOG Resources Inc | Qnpgzgcql | Smjsz | $77.9 Bil | |
PXD
| Pioneer Natural Resources Co | Jcllsghw | Vncclp | $64.3 Bil | |
OXY
| Occidental Petroleum Corp | Rvjrbtyd | Lppxp | $60.2 Bil | |
HES
| Hess Corp | Qpfwwvcb | Rwbdhw | $49.0 Bil | |
FANG
| Diamondback Energy Inc | Qywfxpjcbf | Lzrkzns | $36.9 Bil | |
DVN
| Devon Energy Corp | Xjbrqbckp | Rmmkbq | $33.1 Bil | |
MRO
| Marathon Oil Corp | Hxnsbkbw | Ttx | $15.9 Bil | |
AR
| Antero Resources Corp | Fqhvwjmh | Prlh | $10.1 Bil |
