APA (APA) AI Stock Analysis

• Market Cap: $8.45B
• Dividend Yield: 4.2%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.96
• Revenue Growth: 4.88%
• EPS Growth: -41.34%
• Country: US
• Employees: 2,305
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.93
• Shares Outstanding: 354,669,250
• 10 Day Avg. Volume: 8,124,484
• 30 Day Avg. Volume: 7,321,997
• PEG Ratio: -0.13
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 10.60
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 2.44
• 1Y Price Target: $23.33
• Price Target Upside: -2.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $26.00 ▲(9.11% Upside)

APA's overall stock score is driven by its solid financial performance, attractive valuation, and positive earnings call outcomes. The company's strong profitability, improved leverage, and effective cash flow management are significant strengths. While technical analysis presents mixed signals, the low P/E ratio and high dividend yield enhance its investment appeal. Challenges in derivative losses and regional production declines are noted but are offset by strategic cost reductions and operational efficiencies.

Positive Factors

Cost Reduction Achievements

Achieving cost savings ahead of schedule enhances APA's financial flexibility, allowing for reinvestment and strengthening its competitive position.

Debt Reduction and Financial Flexibility

Reducing debt levels and maintaining significant cash reserves improve APA's balance sheet strength, supporting long-term strategic initiatives.

Strong Operational Execution

Consistent operational excellence and cost management enhance APA's ability to sustain profitability and adapt to market changes.

Negative Factors

Unrealized Loss on Derivatives

Significant derivative losses can affect financial results and indicate potential volatility in earnings, impacting investor confidence.

Challenges with Egypt Gas Pricing

Changes in Egypt gas pricing could reduce cash flow, affecting APA's ability to fund operations and investments, posing long-term challenges.

North Sea Production Decline

Declining production in the North Sea may lead to reduced revenue and increased costs, impacting APA's overall financial performance.

APA Business Overview & Revenue Model

Company Description

APA Corporation, through its subsidiaries, explores for, develops, and produces oil and gas properties. It has operations in the United States, Egypt, and the United Kingdom, as well as has exploration activities offshore Suriname. The company also operates gathering, processing, and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines. APA Corporation was founded in 1954 and is based in Houston, Texas.

How the Company Makes Money

APA generates revenue primarily through the transportation of natural gas via its extensive pipeline network, charging fees for the transmission services provided to its customers. Key revenue streams include long-term contracts with utility companies and industrial users, which provide a stable income base. Additionally, APA earns income from its gas storage facilities, where customers pay for storage capacity and related services. The company also benefits from partnerships with energy retailers and other stakeholders in the energy market, enhancing its earnings through collaborative projects and joint ventures in renewable energy initiatives.

APA Financial Statement Overview

Summary

APA demonstrates solid financial health with strong profitability and improved leverage. The company has effectively managed its cash flows, supporting its operations and growth. While revenue growth has been inconsistent, APA's ability to maintain profitability and improve its balance sheet metrics positions it well for future stability and potential growth.

Income Statement

APA's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -4.14%, but the company maintains strong profitability with a net profit margin of 15.65% and an EBIT margin of 32.15%. The gross profit margin is healthy at 37.83%, although it has decreased from previous years. The company has shown resilience in maintaining profitability despite revenue fluctuations.

Balance Sheet

The balance sheet reflects a significant improvement in leverage with a debt-to-equity ratio of 0.39 in the TTM period, down from 1.22 in the previous year. Return on equity is robust at 21.78%, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting potential risks if asset values fluctuate.

Cash Flow

APA's cash flow statement is strong, with a notable free cash flow growth rate of 16.46% in the TTM period. The operating cash flow to net income ratio is 2.05, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.40, showing a solid conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.64B	9.74B	8.28B	11.07B	7.99B	4.43B
Gross Profit	3.72B	4.30B	4.23B	6.25B	3.54B	905.00M
EBITDA	5.62B	4.17B	4.75B	7.61B	3.66B	-2.64B
Net Income	1.51B	804.00M	2.85B	3.67B	1.14B	-4.78B
Balance Sheet
Total Assets	17.70B	19.39B	15.24B	13.15B	13.30B	12.75B
Cash, Cash Equivalents and Short-Term Investments	475.00M	625.00M	87.00M	245.00M	302.00M	262.00M
Total Debt	4.49B	6.16B	5.30B	5.62B	7.61B	8.89B
Total Liabilities	10.84B	13.03B	11.55B	11.80B	14.02B	13.39B
Stockholders Equity	5.96B	5.28B	2.65B	423.00M	-1.59B	-1.64B
Cash Flow
Free Cash Flow	1.90B	769.00M	772.00M	2.54B	2.39B	114.00M
Operating Cash Flow	4.77B	3.62B	3.13B	4.94B	3.50B	1.39B
Investing Cash Flow	-1.50B	-924.00M	-2.14B	-1.51B	-833.00M	-1.47B
Financing Cash Flow	-2.86B	-2.16B	-1.15B	-3.49B	-2.62B	93.00M

APA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APA, the sentiment is Positive. The current price of 23.83 is above the 20-day moving average (MA) of 22.83, above the 50-day MA of 23.20, and above the 200-day MA of 19.85, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APA.

APA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	76 Outperform	$4.89B	6.30	15.06%	3.34%	14.77%	-17.38%
APA	73 Outperform	$8.45B	5.73	27.24%	4.20%	4.88%	-41.34%
RRC	71 Outperform	$8.90B	15.78	14.18%	0.93%	23.88%	20.55%
CHRD	70 Outperform	$4.97B	33.83	2.02%	6.28%	8.43%	-86.63%
MUR	66 Neutral	$4.06B	28.98	2.76%	4.48%	-13.92%	-68.34%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRK	61 Neutral	$6.75B	103.32	2.86%	―	35.41%	―

APA Corporate Events

APA Corporation Reports Strong Q3 2025 Results

APA Corporation, a prominent player in the oil and natural gas sector, operates across the United States, Egypt, the United Kingdom, and offshore Suriname, focusing on exploration and production activities.

APA Corp. Earnings Call: Strong Performance Amid Challenges

The recent earnings call for APA Corp. painted a picture of robust operational performance and strategic cost savings, setting a promising stage for future growth. Despite these strengths, the company faces challenges with derivative losses and potential cash flow impacts due to changes in Egypt’s gas pricing and declining production in the North Sea.

APA Corp. Earnings Call: Strategic Gains Amid Challenges

The recent earnings call for APA Corp. painted a picture of robust financial health and strategic advancements, despite some operational challenges. The sentiment was generally positive, underscoring significant debt reduction, successful cost-saving measures, and strategic expansion in Egypt. However, the company acknowledged hurdles such as declining oil production in Egypt, uncertainties in the Permian Basin, and temporary production constraints.

APA Corporation Reports Strong Q2 2025 Results

APA Corporation, a leading oil and natural gas exploration and production company, operates primarily in the United States, Egypt, and the United Kingdom, with additional exploration activities offshore Suriname. The company is known for its strategic initiatives and efficient operational practices in the energy sector.