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APA Corp APA

Morningstar Rating
$32.22 +0.55 (1.74%)
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Company Report

APA Expects Greater Synergies From Callon Assets

APA is an upstream oil and natural gas producer with assets in the United States and overseas. The vast majority of its domestic production is derived from the Permian Basin. The firm's footprint of 500,000 net acres extends across several subbasins and mainly focuses on the same reservoirs that competitors are targeting (the Spraberry and Wolfcamp intervals in the Midland Basin and the Bone Spring and Wolfcamp formations in the Delaware). However, APA also has its own discovery in the Permian region, the Alpine High play. Alpine High wells are characterized by very strong initial production rates but with a much higher gas and natural gas liquids content than we'd expect elsewhere in the Permian. This gives the firm optionality: When natural gas prices compare favorably with oil prices, APA can allocate more capital to its gassier assets.

Price vs Fair Value

APA is trading at a 558% premium.
Price
$32.22
Fair Value
$89.00
Uncertainty
Very High
1-Star Price
$94.30
5-Star Price
$87.00
Economic Moat
Pmgnm
Capital Allocation
Ksglxdyvx

Bulls Say, Bears Say

Bulls

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.

Bears

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.

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News

Trading Information

Previous Close Price
$31.67
Day Range
$31.8432.51
52-Week Range
$27.1746.15
Bid/Ask
$32.20 / $32.39
Market Cap
$11.96 Bil
Volume/Avg
4.9 Mil / 5.8 Mil

Key Statistics

Price/Earnings (Normalized)
6.65
Price/Sales
1.20
Dividend Yield (Trailing)
3.10%
Dividend Yield (Forward)
3.10%
Total Yield
5.51%

Company Profile

Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Value
Total Number of Employees
2,271

Competitors

Valuation

Metric
APA
DVN
EOG
Price/Earnings (Normalized)
6.659.0111.11
Price/Book Value
3.722.532.66
Price/Sales
1.202.073.28
Price/Cash Flow
2.804.716.68
Price/Earnings
APA
DVN
EOG

Financial Strength

Metric
APA
DVN
EOG
Quick Ratio
0.790.861.87
Current Ratio
1.161.042.32
Interest Coverage
8.7712.3462.85
Quick Ratio
APA
DVN
EOG

Profitability

Metric
APA
DVN
EOG
Return on Assets (Normalized)
9.00%14.30%16.00%
Return on Equity (Normalized)
84.28%29.77%25.23%
Return on Invested Capital (Normalized)
18.64%20.25%21.58%
Return on Assets
APA
DVN
EOG
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Oil & Gas E&P Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ConocoPhillips
COP
BbfpzrcgJqlgx$135.2 Bil
EOG Resources Inc
EOG
QkzhlglhwVfjnqzb$76.1 Bil
Occidental Petroleum Corp
OXY
QvqjbzyhqMyd$56.0 Bil
Hess Corp
HES
RmrvsppjxShbxnpl$47.6 Bil
Diamondback Energy Inc
FANG
HncnsrvthcKsfkqy$37.6 Bil
Devon Energy Corp
DVN
JfswbrjckSxjnf$30.5 Bil
Marathon Oil Corp
MRO
PtlsvcpZytr$16.3 Bil
EQT Corp
EQT
SycgnyjbDyp$15.7 Bil
Antero Resources Corp
AR
WygjqftwWjjh$9.3 Bil

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