APA Corporation (APA)

Energy · $15.1B market cap · SEC CIK 0001841666

Next reports on Feb 23, 2027, after the close, with analysts expecting $1.93 in earnings per share.

52-week range $23.06 to $52.96. 15% below its 52-week high and 96% above its low.

The case for APA

• Cheap for its growth: 7.0× earnings, where 6%+ a year of growth plus a 2.7% dividend would justify about 21×.
• Earns 32% back on shareholder equity.
• 23% of revenue drops through to net profit.
• Pays a 2.7% dividend while you wait.
• Has compounded revenue at 15.0% a year over five years.
• Gross margin of 81% absorbs cost shocks.

The case against

• Revenue was flat on the year (−1.9%).
• Current liabilities exceed current assets (ratio 0.85).
• Long-term debt of $4.3B against $516M of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
• Its profits follow commodity prices, so last year's change in earnings per share is not counted as growth.
• Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.

The financials

The financials, five years deep

Pulled from APA Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

Risk factors APA lists in its 10-K

• Crude oil, natural gas, and NGL prices and their volatility could adversely affect the Company’s operating results and the price of APA’s common stock
• Public health events, workforce disruptions, or similar global or regional events have previously and may in the future adversely impact the Company’s business, financial condition, and results of operations
• The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents
• The Company has previously not realized, and may in the future not realize, an adequate return on wells that it drills
• The Company’s insurance policies do not cover all of the risks the Company faces, which could result in significant financial exposure
• A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations
• Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects
• Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production
• The Company may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves
• Crude oil, natural gas, and NGL reserves are estimates, and actual recoveries may vary significantly
• Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage
• The credit risk of financial institutions could adversely affect the Company and result in a significant loss
• The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations
• A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital
• Market conditions may restrict the Company’s ability to obtain funds for future development and working capital needs, which may limit its financial flexibility
• The Company’s ability to declare and pay dividends, and to repurchase common stock, is subject to limitations
• The Company faces strong industry competition that may have a significant negative impact on the Company’s results of operations
• The Company’s ability to utilize net operating losses and other tax attributes to reduce future taxable income may be limited if the Company experiences an ownership change
• The Company’s ability to realize its deferred tax assets may be limited if it experiences changes in expected future cash flows related to reserves or ARO
• APA is a holding company and is dependent on the operations of and distributions from its subsidiaries, including Apache
• The Company may incur significant costs related to environmental matters
• The Company’s U.S. operations are subject to governmental risks
• Proposed federal, state, or local regulation regarding hydraulic fracturing could increase the Company’s operating and capital costs
• Changes in tax rules and regulations, or interpretations thereof, may adversely affect the Company’s business, financial condition, and results of operations
• The impacts of climate change, energy transition policies, and ESG-related initiatives could adversely affect the Company’s business, operating results, and financial condition
• Weather and climate may have a significant adverse impact on the Company’s revenues and production
• Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact the Company’s business
• Enhanced focus on ESG matters could have an adverse effect on the Company’s operations
• The Company’s estimates used in various scenario planning analyses could differ materially from actual results and could expose the Company to new or additional risks
• The treatment and disposal of produced water is becoming more highly regulated and restricted and could expose the Company to additional costs or limit certain operations
• International operations have uncertain political, economic, and other risks
• A deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on the Company’s business
• The Company’s operations are sensitive to currency rate fluctuations
• Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover

Filings

Other Energy companies