Apache Corp (APA)

GS751 (28.70) Submitted: 4/10/2008 9:02:57 PM : Start Price: $131.81 APA Score: -14.68

reserves Plus energy prices going up. I would like to see a little better cash flow management but it gets a green thumb for now. Production for the quarter was up 8%, while for the year, it grew 12%. The firm provided some exciting news about Australian natural-gas prices: Long-term contracts in Australia have more than tripled in the past year, from less than $2 to more than $7 per thousand cubic feet (I am extremely bullish on the price of natural gas long term). Basically apache buys the unloved stuff from XOM and BP. As long as crude and natural gas prices stay high they firm's margins should do fine. About 70% of Apache's reserves are in North America. This eliminates political risk. NA reserves are usually older and harder to get but apache is a low cost producer which is nice. There are a lot of things I like here. If Oil stays above $90 a barrel APA should do well.