Apache Corp (NYSE:APA)

Lucrative valuation given it's exposure to global oil&gas production and bearing in mind the potential trouble in the persian gulf etc.

apa

bought this when it was MUCH higher; believe in company to keep what I had and buy again.

133. Apache Corporation (NYSE: APA) has been beaten down pretty severly in October. I'm absolutely perplexed why this has gotten beat down so bad recently. Thank you Bret Jensen for doing all the hard DD and sleuthing for me on this one. Target: $100-$110. I'm a fan of growing companies that are trading at the bottom of their 5-year valuation metrics. This is going to be a big winner in my CAPS portfolio.

http://beta.fool.com/bradford86/2012/01/04/price-market-part-25/

Floater.

Undervalued when compared to peers, with significant investment in gas and oil over the next few years.

Operating metrics are at the top in almost every category when compared to their peers.

It should be trading around 120

Only drawback is that their is a small dividend which hasn't increased since 2007.

Apache is one of the largest U.S. exploration and production companies, but still has annual production growth above 10%. They have great diversity among gas/oil and international/domestic production. Upside looks significantly greater than what you would expect in the major integrated oil stocks. They have one of the cheapest valuations according to Citi Research with a Price/NAV (net asset value) of 0.57x compared to the E&P group average of 1.09x. Other more traditional valuation gauges are compelling. The price-to-earnings ratio is 8x compared to a ten-year average of 12x. If you take the average earnings over the last ten years, something that enables you to get a full cycle picture on a cyclical company, you end up with a similar story. The price-to-book sits at 1.34x, again a level only hit during the global financial crisis and after September 11th, 2001. This stock is compelling for long-term investors and should fare well in 2012 on a relative basis.

no stopping this company..

Apache Corp. is an Oil and Gas Exploration and Production company with operations around the globe including the United States, Canada, Egypt, the North Sea, Australia, and Argentina. Apache has put a significant amount of Capital into recent development projects as well as made three major asset acquisitions including BP’s assets in Egypt and the US, the acquisition of Mariner Energy a Gulf of Mexico E&P company, and ExxonMobil’s Beryl North Sea assets.

Investment thesis:
1. Recent Acquisitions and Capex Spend will drive increased production levels in 2013 and 2014
a. BP – Western Egypt and US Permian Basin, Mariner Energy US Gulf of Mexico Deepwater and Shelf, ExxonMobil Beryl North Sea, Devon US Gulf of Mexico Shelf
b. Acquired assets are near existing operational assets which allows for quick and efficient asset integration
2. Focus on diverse assets by geography, geologic risk, and hydrocarbon mix
a. Liquids Production up from 44% liquids in 2010 to 50% liquids as of Q3 2012
3. Management is efficient: Been successful in the past at integrating past acquisitions - their ROA and ROI are higher than industry average (17.41 % and 11.51% respectively)
4. Relative Valuation within Industry (EV/EBIDTA = 4.9 compared to industry avg of 7.06, PEG of 1 vs industry avg of 1.73)

Diversified all over the globe. Decent yield. Way too cheap when compared to it's peers.

Punished by global recession fears. There will never be enough oil, with the world population increasing at the rate it is there will only be more need for the most widely used energy source. Highly profitable, well managed, growth prospect.

My great great great grandmother was Apache. Oh and the company has a low P/E. I think Low P/E's are a bit sexy. Needs a bit more insider ownership for it to be perfect but they do make money.

Best blend of value and growth in my opinion. At a current 9.x P/E, it has a very high chance of besting S&P.

Apache has there hands in everything. They have revilutionized the Oil & gas industry by the angled drilling technology and with the huge $7 bn purchase from BP in order for BP to pay off people because of the Gulf of Mexico spill, Apache is showing that they plan on growing even more. They are a very diverse company that is willing to explore new avenues throughout the world. They have a big bank account and even though there it's a hugh insider stock holding percentage. The company is good at what they do and doing it smart.

Besides its core business and stats, I'm looking at this from the LNG standpoint. It's a much safer play for LNG (liquified natural gas) than LNG (Cheniere Energy) which is building a liquification plant with help from APA.

Growth rate 20 to 30%, PE is only 12

great company,
great resources,
oil is going higher

going to be more demand for natural gas

Expecting natural gas use to increase over time.