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APA Corp APA

Morningstar Rating
$30.21 +0.25 (0.82%)
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Company Report

APA Earnings: Stronger Commodity Prices Boost Our Fair Value Estimate Amid Good Quarter

APA delivered strong results, with production volumes of 405 thousand barrels per day (mboe/d) in 2023 just below the midpoint of guidance. We continue to see APA as extremely undervalued, and after refreshing our near-term commodity price forecast, we are increasing our fair value estimate to $65 from $61. The strength of the portfolio including Suriname provides ample opportunity for organic growth in the next few years even as it constrains potential cash returns to shareholders.

Price vs Fair Value

APA is trading at a 54% discount.
Price
$29.95
Fair Value
$62.00
Uncertainty
Very High
1-Star Price
$887.27
5-Star Price
$39.50
Economic Moat
Ywbp
Capital Allocation
Zmczydgm

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
$29.97
Day Range
$29.9130.30
52-Week Range
$29.4746.14
Bid/Ask
$30.21 / $30.22
Market Cap
$9.11 Bil
Volume/Avg
1.1 Mil / 5.3 Mil

Key Statistics

Price/Earnings (Normalized)
6.17
Price/Sales
1.12
Dividend Yield (Trailing)
3.34%
Dividend Yield (Forward)
3.34%
Total Yield
6.98%

Company Profile

Based in Houston, APA is an independent exploration and production company. It operates primarily in the U.S., 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)
6.177.729.58
Price/Book Value
3.422.342.36
Price/Sales
1.121.852.88
Price/Cash Flow
2.614.235.98
Price/Earnings
APA
DVN
EOG

Financial Strength

Metric
APA
DVN
EOG
Quick Ratio
0.710.831.96
Current Ratio
1.021.072.44
Interest Coverage
9.7913.3864.84
Quick Ratio
APA
DVN
EOG

Profitability

Metric
APA
DVN
EOG
Return on Assets (Normalized)
10.22%15.69%16.14%
Return on Equity (Normalized)
131.66%32.89%25.79%
Return on Invested Capital (Normalized)
21.40%22.08%21.71%
Return on Assets
APA
DVN
EOG
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FANG
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DVN
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MRO
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