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APA (APA)
NASDAQ:APA
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APA
(NASDAQ:APA)
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Rating:73Outperform
Price Target:
$26.00
▼(-0.04% Downside)
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 (APA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.47B
Dividend Yield3.8%
Average Volume (3M)4.92M
Price to Earnings (P/E)6.4
Beta (1Y)0.98
Revenue Growth4.88%
EPS Growth-41.34%
CountryUS
Employees2,305
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.93
Shares Outstanding354,669,250
10 Day Avg. Volume5,309,748
30 Day Avg. Volume4,916,585
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)1.54
Price to Sales (P/S)0.84
P/FCF Ratio10.60
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda2.44
Forecast
1Y Price Target
$25.39Price Target Upside-2.38% Downside
Rating ConsensusHold
Number of Analyst Covering19
EPS Forecast (FY)2.73
Revenue Forecast (FY)$7.68B
APA Business Overview & Revenue Model
Company DescriptionAPA 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 MoneyAPA generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company's revenue model includes the direct sale of hydrocarbons to various customers, including utilities, refineries, and other energy companies. Additionally, APA earns income from service agreements related to gas processing and transportation, which further diversifies its revenue streams. Significant partnerships with other energy companies and participation in joint ventures enhance its operational capacity and market reach, contributing to its overall profitability. Furthermore, fluctuations in global oil and gas prices directly impact APA's earnings, making commodity pricing a critical factor in its revenue generation strategy.
APA Key Performance Indicators (KPIs)
Any
Daily Oil Volume by Geography
Monitors oil production levels in various regions, indicating operational scale, regional strengths, and exposure to geopolitical or market risks.
Monitors oil production levels in various regions, indicating operational scale, regional strengths, and exposure to geopolitical or market risks.
Data provided by:
The Fly
The FlyAPA Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflected strong operational performance and cost savings achievements, bolstering financial flexibility and future growth prospects. However, challenges remain with derivative losses and anticipated cash flow impacts from Egypt gas pricing changes and North Sea production declines.Q3-2025 Updates
Positive Updates
Strong Third Quarter Results
APA Corp exceeded production guidance in all operating areas, with capital investment and operating costs below guidance.
Cost Reduction Achievements
APA is on track to realize $300 million in savings this year and aims for a run rate savings target of $350 million by the end of 2025, two years ahead of the original goal.
Egypt Operations Success
Received substantial payments nearly eliminating past due receivables. Gross BOEs grew sequentially, driven by gas program success.
Permian Basin Performance
Strong operational execution resulted in oil production above guidance, with consistent capital investment and operating costs.
Debt Reduction and Financial Flexibility
Net debt reduced by approximately $430 million, ending the quarter with $475 million in cash, providing financial flexibility for 2026.
Negative Updates
Unrealized Loss on Derivatives
Reported a $148 million unrealized loss on derivatives impacting net income.
Challenges with Egypt Gas Pricing
Anticipated reduction in cash flow due to the roll-off of legacy cost recovery, impacting free cash flow by approximately $60 million in 2026.
North Sea Production Decline
Expected production to decline 15% to 20% year-over-year with minimal investment and increased ARO spending.
Company Guidance
During the third quarter of 2025, APA Corporation demonstrated strong operational execution and financial performance, surpassing production guidance across its operating areas while keeping capital investment and operating costs below expectations. In the Permian, oil production exceeded guidance, and capital investment was in line with projections. In Egypt, operational success and significant payments nearly eliminated past due receivables, contributing to gross BOE growth. APA reported consolidated net income of $205 million, or $0.57 per diluted share, with adjusted net income at $332 million, or $0.93 per share. The company generated $339 million in free cash flow, returning $154 million to investors. APA's cost reduction efforts are on track to achieve $300 million in savings for 2025, with a target of $350 million by the end of 2025, two years ahead of schedule, and an additional $50 million to $100 million in savings anticipated by the end of 2026. For 2026, APA is focused on capital discipline, with development capital expected to be 10% lower than 2025, maintaining Permian oil production at approximately 120,000 barrels per day, and exploring additional efficiencies across its portfolio.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.72
Positive
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.65
Positive
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.78
Positive
| 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 | 4.59B | 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
Positive
26.01
Price Trends
24.76
Positive
23.96
Positive
20.87
Positive
Market Momentum
0.27
Negative
56.76
Neutral
77.55
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 26.01 is above the 20-day moving average (MA) of 24.72, above the 50-day MA of 24.76, and above the 200-day MA of 20.87, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APA.
APA Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $5.42B | 6.97 | 15.06% | 3.14% | 14.77% | -17.38% | |
76 Outperform | $5.37B | 36.58 | 2.02% | 5.73% | 8.43% | -86.63% | |
73 Outperform | $9.47B | 6.42 | 27.24% | 3.80% | 4.88% | -41.34% | |
71 Outperform | $7.92B | 14.04 | 14.18% | 1.00% | 23.88% | 20.55% | |
67 Neutral | $4.89B | 34.95 | 2.76% | 4.15% | -13.92% | -68.34% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | $6.46B | 93.58 | 2.86% | ― | 35.41% | ― |
* Energy Sector Average
APA
APA
26.01
2.84
12.26%
CRK
Comstock Resources
20.85
-0.52
-2.43%
MTDR
Matador Resources
42.79
-19.13
-30.89%
MUR
Murphy Oil
33.68
2.72
8.79%
RRC
Range Resources
33.60
-7.07
-17.38%
CHRD
Chord Energy
91.94
-27.80
-23.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.