In the United States, crude oil extraction in the Midland and Delaware Basins seeks to increase efficiency with fewer drilling rigs by increasing production volumes. The company's EBTIDA margin of 58.80% is extremely interesting. Furthermore, the leveraged free cash flow margin of 22.45% is extremely significant. I would like to emphasize that if we annualize the latest value and compare it to the current EV of $13.15 billion, the EV/EBITDA ratio is 2.21x.
APA (APA) closed at $18.29 in the latest trading session, marking a -1.45% move from the prior day.
APA and OXY are expanding their operations and have a strong presence in the Permian Basin.
APA (APA) concluded the recent trading session at $20.78, signifying a +1.37% move from its prior day's close.
Crude jumps on Middle East tensions. Oil stocks like CIVI, APA and FANG rally on supply fears and rising risk premiums.
In the latest trading session, APA (APA) closed at $19.61, marking a +1.71% move from the previous day.
According to Bank of America, oil could push higher on short covering. Working with a financial advisor can help individuals navigate ongoing political and economic uncertainty.
APA Corporation is trading at recession-like valuation levels, with ultra-low price-to-sales and cash flow ratios rarely seen outside crisis periods. Shares offer a high 17% free cash flow yield and an above-average dividend yield of 5.4%, making it an attractive income and value play in oil/gas. Key risks include elevated debt and the potential for continued low selling prices for fossil fuels, but debt maturities are manageable and cash flow is robust.
APA (APA) reported earnings 30 days ago. What's next for the stock?
APA, PBR and PR stand out in a volatile oil market, backed by strong dividends and robust cash flow strategies.
APA Corporation's stock experienced a ~30% drop due to subdued oil prices, but Q1 2025 results exceeded expectations, driving an 8% post-earnings jump. Management's focus on cost cuts and improved drilling efficiencies in the Permian and Egypt gas assets are positive indicators for future performance. Despite risks like debt and volatile oil prices, APA is undervalued compared to peers, presenting a speculative buy opportunity for patient investors.
APA's first-quarter production averaged 468,978 BOE/d (67% liquids), up 20.5% year over year and above our estimate of 465,009 BOE/d.