APA

Apache Corp

Energy


Presented:10/06/2016
Price:$63.33
Cap:$24.00B
Current Price:$24.85
Cap:$9.19B

Presented

Date10/06/2016
Price$63.33
Market Cap$24.00B
Ent Value$30.17B
P/E RatioN/A
Book Value$18.83
Div Yield0.02%
Shares O/S379.00M
Ave Daily Vol3,957,920
Short Int5.86%

Current

Price$24.85
Market Cap$9.19B
Apache Corp. explores, develops and produces natural gas, crude oil and natural gas liquids. The company has exploration and production interests in six countries: the U.S., Canada, Egypt, the U. K. in the North Sea and Argentina. The North American asset base comprises operations in the Permian Basin, the Anadarko basin in western Oklahoma and the Texas Panhandle, Gulf Coast onshore and offshore areas of the U.S., and operations in Western Canada. . It is focused on oil projects located primarily in Alberta and Saskatchewan. The company's operations in Egypt are conducted pursuant to production-sharing agreements, in various separate concessions. The company was founded by Raymond Plank, Charles Arnao and Truman Anderson on December 6, 1954 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Apache Corporation (APA), Chesapeake Energy Corporation (CHK), EOG Resources Inc (EOG)

Highlights

The presenter is short shares of Apache Corporation (APA) at $64 and sees the potential for the exploration and production company’s stock to decline to ~$45 over the next 12-18 months. At the core of his thesis is his belief that APA’s new “Alpine High” play (in the Delaware Basin) is over-hyped and there is $15/ share of value baked into the current stock price that could evaporate over time. The setup reminds him of 2007 when Chesapeake raised billions in capital to expand in the Haynesville - at peak levels - after saying it was done raising capital. Then Chesapeake went out and did a bunch of deals using its stock as currency. In his opinion, the initial coverage of APA’s exciting new resource play and how John Christmann explained its discovery are curious, at best.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.