Why Apollo Global Management (APO) Is Up 10.8% After $3 Billion Natural Gas Partnership Announcement

• In early December 2025, Capital Power announced it had signed an MOU with Apollo Funds to pursue U.S. merchant natural gas generation acquisitions, with up to US$3.00 billion of potential equity commitments and Capital Power operating the acquired assets and earning management and performance fees.
• Alongside this push into large-scale energy and data-center-linked power assets, Apollo is also extending its reach in private markets through areas such as sports ownership and retirement solutions, underlining how its credit, infrastructure, and annuity platforms are being used to finance long-dated real‑asset growth.
• Against this backdrop, we’ll now examine how Apollo’s US$3.00 billion natural gas partnership could influence its investment narrative and growth focus.

Find companies with promising cash flow potential yet trading below their fair value.

Apollo Global Management Investment Narrative Recap

To own Apollo, you need to be comfortable with a complex alternative asset manager that leans heavily on execution, disciplined growth and its Athene-powered retirement platform. The US$3.0 billion natural gas MOU with Capital Power looks additive to its credit and infrastructure story rather than a material shift in the near term, while internal execution and maintaining spreads in a competitive insurance market still stand out as key short term swing factors.

The new gas generation partnership also sits neatly alongside Apollo’s push into financing long dated real assets tied to the AI and data center build out, as highlighted in recent commentary about private credit supporting multibillion dollar, multi year projects. For investors tracking catalysts, the common thread is Apollo using its annuity and credit platforms to fund large, asset backed opportunities where underwriting quality and disciplined pacing of growth remain central.

Yet, even as these opportunities expand, investors should be aware that increased competition in the insurance space could pressure spreads and...

Read the full narrative on Apollo Global Management (it's free!)

Apollo Global Management's narrative projects $1.1 billion revenue and $6.6 billion earnings by 2028. This implies a 64.6% yearly revenue decline and an earnings increase of about $3.5 billion from $3.1 billion today.

Uncover how Apollo Global Management's forecasts yield a $158.22 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$110 to about US$203 per share, with some members far above the current price. You are weighing those views against execution risks and spread pressure in Apollo’s insurance and retirement services business, which could have broader implications for how reliably the firm converts its growth ambitions into sustainable earnings power.

Explore 6 other fair value estimates on Apollo Global Management - why the stock might be worth as much as 36% more than the current price!

Build Your Own Apollo Global Management Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Apollo Global Management research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Apollo Global Management research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Apollo Global Management's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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