Hello, Fool! | Login | Signup | My Fool
Oct 13, 2008 3:07 PM ET | Feedback | Site Changes | Help
An independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids.
View All Commentary (APA)
Recs
TheGarcipian (99.04) Submitted: 6/11/08 9:21 PM : Start Price: $138.32 APA Score: -16.68
An oil-n-gas sector play, this stock should be a winner for some time to come. Given the present investing climate of rising oil prices and seemingly insatiable demand for oil, I think this stock, with its very fair PEG ratio of 1.09 and an incredibly low EnterpriseValue-to-EBITDA ratio of only 6, is a bargain right now, with that fact screaming at me just like their Indian namesake. I only wished I'd stumbled across it sooner! This company has interests in all the right places in the world: Gulf of Mexico, Texas, Australia, the North Sea, Argentina, Egypt, and Western Canada. Projected growth rates for the 1-yr, 3-yr and 5-yr time frames are all double-digits (10.2%, 11.8% and 27.6%, respectively). Their margins are extremely healthy at 30% (Profit) and 51.5% (Operating). Return on Assets is good at 12.9%, but their Return on Equity is excellent at 22.6%. Revenue steadily increased all of last year (2007), rising 50% from the 1st quarter to the 4th quarter -- unbelievable! Apache grew yearly revenue from $8.07B in 2006 to $9.96B in 2007, a 23.4% increase. Very nice. The only question is: can it sustain this growth? With an operating cash flow of $6.42B, I think it can.But has anyone done a DCF (Discounted Cash Flow) analysis on Apache? If you're willing to share that with me, please post a Reply below. Thanks!SOURCES: Motley Fool and Yahoo! Finance.
Report this Post Replies: 0 | Reply
Oops! There appears to be a problem with your comment. Check to see if there's something you left out.