On Friday, TD Cowen maintained its Hold rating on Apache Corp . (NASDAQ: NASDAQ:APA) with a steady price target of $36.00. The firm's stance comes after adjustments to its model following Apache's recent supplemental 8-K filing.
The report indicated a downturn in domestic gas pricing to $0.30 per thousand cubic feet (Mcf), leading Apache to reduce its natural gas output by 78 million cubic feet per day (MMcf/d). Additionally, the company curtailed 7.6 thousand barrels of oil equivalent per day (Mboe/d) of associated natural gas liquids (NGLs), a figure 50% higher than the previous guidance.
The energy company has also reported repurchasing 1.5 million shares within the quarter at an average price of $28.71. This buyback activity is part of Apache's ongoing efforts to manage its share count and return value to shareholders.
In another positive development, the production of taxed barrels in Egypt was 9% higher than TD Cowen's model had anticipated. This increase could indicate a quarter-over-quarter improvement in the company's operations within the region.
The provided data underscores a strategic response by Apache to the current market conditions, balancing its production with financial maneuvers such as share repurchases. The analyst's reiteration of the Hold rating and price target reflects a measured outlook on the company's performance amidst these operational adjustments.
In other recent news, APA Corporation has been in the spotlight due to a series of strategic decisions and analyst revisions. APA Corporation recently sold its non-core assets in two transactions, generating over $700 million, which will primarily be used to lower near-term borrowings.
Meanwhile, Truist Securities has adjusted its price target for APA Corporation, reducing it to $52 while maintaining a Buy rating. This adjustment was influenced by APA's recent results and revised production guidance, which includes curtailments of gas and natural gas liquids production.
On the other hand, Evercore ISI has downgraded APA's stock from Outperform to In Line, citing factors such as disappointing performance in Egypt and ongoing challenges in the North Sea. Other analyst firms such as Wells Fargo (NYSE:WFC) Securities and RBC Capital Markets have assigned APA Corp. an Overweight and a Sector Perform rating, respectively.
In a separate development, Morgan Stanley (NYSE:MS) Energy Partners has completed the sale of Durango Permian LLC to Kinetik Holdings Inc. The transaction includes a mix of cash and equity, with additional contingent consideration tied to the launch of the Kings Landing Gas Gathering and Processing Development.
These are the recent developments for these companies.
InvestingPro Insights
InvestingPro data highlights that Apache Corp. (NASDAQ: APA) maintains a strong financial position with a market capitalization of $11.06 billion and a very attractive P/E ratio of 3.32, which adjusts to 3.76 over the last twelve months as of Q1 2024. This signals that the stock could be undervalued relative to its earnings. Moreover, the company boasts a robust Return on Assets of 21.96% for the same period, indicating efficient management of its assets to generate profits.
Investors will also find it reassuring that Apache has maintained dividend payments for 54 consecutive years, with a current dividend yield of 3.36%. This consistent return to shareholders is a testament to the company's commitment to delivering value, even in challenging market conditions. Additionally, with a Gross Profit Margin of 71.2%, Apache demonstrates strong profitability in its operations.
For those seeking further insights, there are additional InvestingPro Tips available, including an analysis of the company's stock price volatility and future profitability forecasts. Interested investors can explore these tips and more on InvestingPro, and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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