HOUSTON, TX - APA Corporation (NASDAQ:APA), a company engaged in the exploration and production of crude petroleum and natural gas, announced the expansion of its board of directors and the appointment of a new member. On Monday, the company's board was expanded to eleven directors with the addition of Kenneth M. Fisher, effective last Thursday.
Kenneth Fisher, aged 62, brings a wealth of experience to APA's board, having served as Executive Vice President and Chief Financial Officer of ChampionX Corporation since February 1, 2021. Prior to this, he was the Executive Vice President and Chief Financial Officer of Noble Energy (NASDAQ:NBL), Inc. until its acquisition by Chevron (NYSE:CVX) in October 2020. Fisher's career also includes senior leadership roles at Shell (LON:SHEL) and General Electric Company (NYSE:GE).
In his new role, Fisher will join the Audit Committee and the Cybersecurity Committee of the board. His compensation aligns with that of other non-employee directors of APA Corporation, details of which are disclosed in the company's definitive proxy statement filed on April 12, 2024.
APA Corporation clarified that there were no material plans, contracts, or arrangements entered into or materially amended in connection with Fisher's appointment. Moreover, Fisher has no direct or indirect material interest in any transaction or series of transactions that would require disclosure under SEC regulations.
The appointment of Fisher to APA Corporation's board is part of the company's governance and oversight strategy, ensuring experienced leadership to navigate the evolving energy sector. APA Corporation's decision to expand its board and bring in a new director is based on a press release statement.
In other recent news, APA Corporation reported Q3 2024 gains, including a $3 million realized gain on commodity derivatives and a substantial $178 million gain on natural gas transactions with Cheniere. The company also announced the sale of non-core assets in the Permian Basin for $950 million. APA Corporation and TotalEnergies (EPA:TTEF) have committed to a $10.5 billion investment in Suriname's Block 58 offshore oil project, expected to produce over 750 million barrels of oil starting in 2028.
JPMorgan (NYSE:JPM) raised its target for Apache Corp (NASDAQ:APA) to $29, reflecting expectations of a slight outperformance against consensus estimates for Q3 2024. Analyst firms Truist Securities and Wolfe Research upgraded their price targets for APA Corporation, citing operational opportunities in Suriname, the Permian region, and Egypt. However, Mizuho maintained an underperform rating, noting the higher costs of the Suriname project.
Apache Corp reported a reduction in natural gas output by 103 million cubic feet per day and a cut in natural gas liquids production, exceeding previous estimates due to pricing adjustments.
InvestingPro Insights
APA Corporation's recent board expansion comes at a time when the company faces both challenges and opportunities in the volatile energy market. According to InvestingPro data, APA's stock price movements have been quite volatile, and the company is currently trading near its 52-week low. This volatility is reflected in the company's year-to-date price total return of -28.45% as of the latest data.
Despite these market challenges, APA Corporation shows signs of financial resilience. The company boasts a low P/E ratio of 2.82 for the last twelve months as of Q2 2024, suggesting that it may be undervalued relative to its earnings. Additionally, APA has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns even in turbulent times. The current dividend yield stands at 4.03%, which may be attractive to income-focused investors.
InvestingPro Tips highlight that analysts predict the company will be profitable this year, and indeed, APA has been profitable over the last twelve months. This profitability is underscored by the company's strong gross profit margin of 71.39% for the last twelve months as of Q2 2024.
The appointment of Kenneth M. Fisher to the board, particularly to the Audit and Cybersecurity Committees, aligns with the company's need for experienced leadership in financial management and risk oversight. This move could be crucial as APA navigates the current market conditions and seeks to improve its financial performance.
For investors looking for more comprehensive analysis, InvestingPro offers additional tips and insights on APA Corporation. There are 5 more InvestingPro Tips available, which could provide further context to the company's financial health and market position.
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