NYSE:APA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs).


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Apache's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.3%

APA

0.7%

US Oil and Gas

3.0%

US Market


1 Year Return

-59.9%

APA

-33.4%

US Oil and Gas

9.9%

US Market

Return vs Industry: APA underperformed the US Oil and Gas industry which returned -32.9% over the past year.

Return vs Market: APA underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

APAIndustryMarket
7 Day-11.3%0.7%3.0%
30 Day-4.3%5.9%8.2%
90 Day-56.8%-14.3%0.4%
1 Year-58.5%-59.9%-30.3%-33.4%12.4%9.9%
3 Year-75.0%-76.9%-29.6%-37.0%31.0%22.3%
5 Year-79.1%-81.5%-38.0%-47.8%58.1%40.3%

Price Volatility Vs. Market

How volatile is Apache's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apache undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: APA ($10.79) is trading above our estimate of fair value ($4.54)

Significantly Below Fair Value: APA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APA is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: APA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APA has negative assets, so we can't compare its PB Ratio to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Apache forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

71.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: APA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: APA's is expected to become profitable in the next 3 years.

Revenue vs Market: APA's revenue (6.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: APA's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Apache performed over the past 5 years?

40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APA is currently unprofitable.

Growing Profit Margin: APA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APA is unprofitable, but has reduced losses over the past 5 years at a rate of 40.7% per year.

Accelerating Growth: Unable to compare APA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: APA is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.8%).


Return on Equity

High ROE: APA has a negative Return on Equity (-2406.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Apache's financial position?


Financial Position Analysis

Short Term Liabilities: APA's short term assets ($1.9B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: APA's short term assets ($1.9B) do not cover its long term liabilities ($11.0B).


Debt to Equity History and Analysis

Debt Level: APA's debt to equity ratio (2562.6%) is considered high.

Reducing Debt: APA's debt to equity ratio has increased from 52.5% to 2562.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable APA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: APA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 44.9% per year.


Next Steps

Dividend

What is Apache's current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: APA's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: APA's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (4.52%).


Stability and Growth of Payments

Stable Dividend: APA's dividends per share have been stable in the past 10 years.

Growing Dividend: APA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: APA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: APA's dividends in 3 years are not forecast to be well covered by earnings (172% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

John Christmann (52yo)

5.42yrs

Tenure

US$14,287,300

Compensation

Mr. John J. Christmann, IV, has been the Chief Executive Officer and President at Apache Corporation since January 20, 2015. Mr. Christmann served as an Executive Vice President and Chief Operating Officer ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD14.29M) is above average for companies of similar size in the US market ($USD5.91M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Christmann
CEO, President & Director5.42yrsUS$14.29m0.13% $5.3m
Stephen Riney
Executive VP & CFO5.25yrsUS$6.20m0.043% $1.7m
P. Lannie
Executive VP & General Counsel17.25yrsUS$4.26m0.041% $1.7m
David Pursell
Executive Vice President of Development Planning2.25yrsUS$3.71m0.0027% $110.0k
David Bretches
Executive Vice President of Operations0.42yrno data0.0014% $56.2k
Rebecca Hoyt
Senior VP9.58yrsno data0.019% $786.8k
Mark Maddox
Senior Vice President of Administration0.42yrno datano data
Gary Clark
Vice President of Investor Relations5.83yrsno datano data
Castlen Kennedy
Vice President of Corporate Communications & Public Affairs4.92yrsno datano data
Ben Rodgers
Senior VP of Midstream and Marketing & Treasurer0.17yrno datano data

5.1yrs

Average Tenure

53yo

Average Age

Experienced Management: APA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Christmann
CEO, President & Director5.42yrsUS$14.29m0.13% $5.3m
John Lowe
Independent Non-Executive Chairman5.08yrsUS$499.85k0.0080% $323.8k
Rene Joyce
Independent Director3.08yrsUS$299.93k0.0027% $107.9k
Daniel Rabun
Independent Director5.08yrsUS$299.93kno data
Amy Nelson
Independent Director6.33yrsUS$304.93k0.00066% $26.9k
William Montgomery
Independent Director8.75yrsUS$319.93k0.0053% $217.5k
Annell Bay
Independent Director6.08yrsUS$314.93kno data
Juliet Ellis
Independent Director1.08yrsUS$184.97k0.00093% $37.9k
Chansoo Joung
Independent Director9.33yrsUS$319.93k0.012% $488.7k
Peter Ragauss
Independent Director5.5yrsUS$304.93kno data

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: APA's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Apache Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apache Corporation
  • Ticker: APA
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$4.072b
  • Shares outstanding: 377.43m
  • Website: https://www.apachecorp.com

Number of Employees


Location

  • Apache Corporation
  • One Post Oak Central
  • Suite 100
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
APADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
APA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0HGCLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
A1PA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs). The company has operations in onshore assets located in the Permian and Midcontinent/Gulf Coast onshore regions; and offshore assets situated in the Gulf of Mexico region. It also holds onshore assets in Egypt’s Western desert; and offshore assets in the North Sea region, including the United Kingdom. In addition, the company has an offshore exploration program in Suriname. As of December 31, 2019, it had total estimated proved reserves of 551 million barrels of crude oil, 186 million barrels of NGLs, and 1.6 trillion cubic feet of natural gas. Apache Corporation was founded in 1954 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 03:02
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.