Apache Corp (NYSE:APA)

Gas and Oil are exploding in price

It has been my second best stock ever, so I had to add it. Besides it still is a great company.

$95/Barrel oil for 1 reason...I do not own yet for reason 2

oil is overbought in the near term.

Oil is overbought

Slightly undervalued in category, hot sector with momentum. APA has relatively stable country operations compared to competitors.

I expect to see high oil prices for the medium term and I think this company will benefit.

Apache's technology in improving and extending the life of wells that are past the peak yields should help them to outperform over the next few years before alternative energies are more widely used and as oil and natural gas become tighter.

Oil is the best thing in my portfolio. Xom has made me more money more consistently than any other stocxk.I recently added Slb. It's making me money. I bet Apa and dvn will make money for the same reasons

Oil company with a P/E of 11.5 from Jubak

Gas is good

Conservative pricing for oil and gas in the models they use to communicate with analysts, as well as a diversified portfolio of properties for exploration will prove a winning strategy for long-term shareholders.

Jubak:
Who Profits?
You can debate whether the world is running out of oil all you want. It is certain, however, that the world has run out of cheap oil.

Almost any oil stock will profit from that scenario, especially if the company owns oil still in the ground. In an era of rising prices for oil, such companies are sitting on an appreciating asset.

But the oil company that is best positioned for the scenario painted by the International Energy Agency is Apache. Apache has become a specialist in producing more barrels -- often lots more barrels -- out of older, "depleted" oil fields that other oil companies have given up on.

This company is no slouch when it comes to finding new oil. Projects in Egypt, Australia and Canada are projected to add 108,000 barrels of oil a day by 2011. And potential resources are set to climb, according to management, to 8.8 billion barrels from 7.1 billion barrels at the end of 2005.

But it's Apache's ability to get more oil out of old fields that makes this an oil stock that I want to own during the supply crunch of the next five years (or longer). For example, Apache bought the North Sea's Forties Field from BP in 2003 for $688 million. Production at the field had declined from a peak of 500,000 to less than 50,000 barrels a day.

Apache invested $911 million in new cranes, pumps and other equipment, and cut operating costs in half. By the end of 2005, the company had increased production to 81,000 barrels a day and raised cash margins per barrel to $24 from $6. The two parts of the company's strategy fit together well: Buying older fields and increasing production there provides a steady cash flow that Apache can then use to explore for new oil.

The stock is a relative bargain in the oil industry, trading at a forward price-to-earnings ratio of 11.5, vs. 13.1 for Devon Energy or 12.90 for Exxon Mobil. And its price may keep gushing up as our oil supply starts to sink.

Mentioned in Volume 28, Number 15 - August 1st, 2007

Takeover target

good growth in right industry

$80 - $120 ???

Probably the best run oil company. This is a can't miss bet.

oil