Company Performance - APA closed at $25.11, reflecting a -0.55% change from the previous session, underperforming compared to the S&P 500's daily loss of 0.29% [1] - Over the last month, APA's shares decreased by 10.87%, contrasting with the Oils-Energy sector's loss of 2.45% and the S&P 500's gain of 1.57% [1] - Analysts expect APA to report earnings of $1.09 per share, indicating a year-over-year decline of 18.05%, while revenue is anticipated to be $2.31 billion, showing a slight increase of 0.01% compared to the previous year [1] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $4.15 per share and revenue of $9.16 billion, representing shifts of -8.39% and +12.08% from the last year, respectively [2] Analyst Estimates and Valuation - Recent changes to analyst estimates for APA suggest a shifting business landscape, with positive revisions indicating optimism about the company's outlook [2] - The Zacks Rank system currently rates APA at 3 (Hold), with a 5.34% decrease in the consensus EPS estimate over the last 30 days [3] - APA's Forward P/E ratio is 6.08, which is a discount compared to the industry's average Forward P/E of 9.95 [3] Industry Context - The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector and holds a Zacks Industry Rank of 218, placing it in the bottom 14% of over 250 industries [3] - The Zacks Industry Rank measures the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3]

Investment Thesis - APA Corporation is considered a worthy buy for less conservative investors due to its current valuation, underpricing compared to peers, and a strong dividend yield [2] - The company has experienced a share price decline of 20-25% recently, making it more attractive for investment [2] Latest News - On September 10, APA Corp. announced a $950 million agreement to sell non-core properties in the Permian Basin, resulting in a reduction of 21,000 boe/d of oil production, viewed as a positive optimization effort [3] - The company targets a production number of 307,000 boe/d for Q3, which is higher than both Q2's 303,000 boe/d and the guidance of 298,000 boe/d [3] Production Outlook - The company expects a production value of 308 MBO/D in the next quarter, including a one-off production increase of 55-60 MBOE/D from the acquisition of Callon Petroleum [4] - Production in Egypt is expected to stagnate at around 43 MBO/d, while the North Sea production is projected at 25 MBO/D, with no significant growth anticipated due to the new EPL tax regime in the UK [5] Suriname Project - APA Corp. partners with TotalEnergies on Block S8 off the coast of Suriname, with expectations of producing 200,000 barrels of oil per day starting in 2028, which could significantly enhance the company's valuation [6] Competitor Valuation - APA Corp. has a current share price of $23.82, a market cap of $8.765 billion, and a P/E ratio of 2.58, indicating it is undervalued compared to competitors [7] - The company offers a dividend yield of 4.20%, which is higher than most competitors, making it attractive for income-focused investors [7] Financial Metrics - The company has a low P/S ratio of 0.98, the lowest among its peers, indicating potential for growth from its current price level [13] - APA Corp. has a share buyback program, with plans to buy back approximately 6.25 million shares, enhancing shareholder value [13] Future Considerations - The next quarterly report will be crucial for assessing the financial balance sheet and the company's ability to cover short-term debt, with expectations for improvement [15] - Monitoring oil prices and developments in the Suriname project will be essential for evaluating the company's profitability and growth potential [15] Summary - The current price level of $23-24 is considered attractive for investment, supported by favorable valuation metrics and a high dividend yield [16] - The management's focus on the Suriname project and recent asset sales are expected to stabilize the financial position and enhance shareholder returns [16]

imaginima At the start of the year, APA Corporation (NASDAQ:APA) was joining the energy consolidation wave as it announced the purchase of Callon Petroleum in a $4.5 billion all-stock deal. The transaction added scale and balance in the Permian Basin, while growing production by some 100,000 barrels of oil-equivalent per day. Following the deal having closed, APA announced some substantial non-core asset divestment here, at prices which look pretty reasonable. Nonetheless, shares kept moving lower amids ...

Company Overview - APA's stock closed at $23.70, reflecting a +0.38% change from the previous day's closing price, which is lower than the S&P 500's gain of 0.75% on the same day [1] - Over the past month, APA's shares have decreased by 18.45%, while the Oils-Energy sector has lost 4.12% and the S&P 500 has gained 4.03% [1] Financial Performance - APA is expected to report an EPS of $1.12, indicating a 15.79% decline compared to the same quarter last year, while revenue is forecasted to be $2.36 billion, showing a 2.36% increase year-over-year [1] - For the full year, the Zacks Consensus Estimates project earnings of $4.34 per share and revenue of $9.31 billion, representing changes of -4.19% and +13.95% from the prior year, respectively [2] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for APA are important as they reflect the evolving business landscape, with positive revisions indicating optimism about the company's outlook [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks APA at 3 (Hold), with a 0.51% increase in the EPS estimate over the last 30 days [3] Valuation Metrics - APA has a Forward P/E ratio of 5.44, which is a discount compared to the industry average Forward P/E of 9.24 [3] - The Oil and Gas - Exploration and Production - United States industry, to which APA belongs, has a Zacks Industry Rank of 214, placing it in the bottom 16% of over 250 industries [3]

APA Corporation (APA) has advanced the company’s goal of refining its U.S. asset base by strategically divesting non-core properties in the Permian Basin. This $950 million transaction is a key part of APA’s strategy to optimize its portfolio and reduce debt.The sale involves properties across the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf, with a combined net production of 21,000 barrels of oil equivalent per day (boe/d), 57% of which is oil. These assets no longer align with A ...

HOUSTON, Sept. 10, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) announced today entry into an agreement for the sale of non-core producing properties in the Permian Basin to an undisclosed buyer for $950 million, prior to customary closing adjustments. The properties are located in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf and currently represent estimated net production of 21,000 barrels of oil equivalent per day (boe/d), of which approximately 57% is oil. Procee ...

These companies could be great ways to boost your passive income stream.Many oil and gas stocks have pulled back now that the price of West Texas Intermediate crude oil (the U.S. benchmark) is hovering around $74 per barrel. Oil prices have been under pressure due to concerns over slowing global economic growth and higher OPEC+ supply.Integrated energy major Chevron (CVX -1.68%) as well as exploration and production companies Chord Energy (CHRD -2.20%) and APA Corp. (APA -2.81%) are hovering within 7% of th ...

Core Insights - The Japan Hotel Market is projected to grow from US$ 23.62 billion in 2023 to US$ 26.50 billion by 2032, reflecting a CAGR of 1.29% from 2024 to 2032, driven by technological advancements and government initiatives to boost tourism [1][10]. Market Overview - The Japan hotel market offers a diverse range of accommodations, including upscale hotels, traditional ryokans, modern business hotels, budget hostels, and capsule hotels, known for their attention to detail, cleanliness, and service [2]. - Japan's rich cultural heritage, historical sites, and modern urban experiences attract millions of travelers annually, supported by government programs aimed at promoting tourism [3]. Driving Forces - Government initiatives to enhance tourism include easing visa requirements for citizens of 71 countries, which has significantly increased accessibility for international travelers [4]. - Infrastructure improvements, such as modernized airports and expanded transit networks, further enhance traveler convenience and boost hotel bookings [5]. Technological Integration - The hotel industry is experiencing growth through the adoption of advanced technologies that improve guest experiences and operational efficiency, including automated check-in/out kiosks and smart in-room technologies [6][7]. - Sustainability is also a focus, with hotels implementing energy-efficient solutions and smart climate control to reduce operational costs and environmental impact [7]. Tokyo Hotel Market - Tokyo's hotel market is characterized by a wide variety of lodging options catering to both tourists and business travelers, supported by the city's status as a global hub and its modern infrastructure [8][9]. - The recovery of international tourism post-pandemic and the city's appeal as a venue for major events and conferences are key growth drivers for Tokyo's hotel sector [9]. Key Players - Major players in the Japan hotel market include Marriott International Inc., Hoshino Resorts REIT Inc., APA Hotels & Resorts, JR Hotel Group, MYSTAYS Hotel Group, Okura Nikko Hotel Management Co. Ltd., Prince Hotels & Resorts, and Route Inn Japan Co. Ltd. [10][11].

Core Viewpoint - APA's recent earnings report shows strong performance with adjusted earnings and revenue exceeding expectations, driven by increased production from the Callon Petroleum acquisition, despite a slight decline in share price over the past month [2][4]. Financial Performance - APA reported Q2 2024 adjusted earnings of $1.17 per share, surpassing the Zacks Consensus Estimate of 95 cents and improving from 85 cents in the previous year [2]. - Revenues reached $2.8 billion, a 42.4% increase from the same quarter last year, and exceeded the Zacks Consensus Estimate by 20.7% [2]. - The company returned value to shareholders through $92 million in dividends and repurchased 1.5 million shares at an average price of $28.72 [2]. Production & Costs - Average production was 473,409 BOE/d, up 18.7% year-over-year, with U.S. output increasing by 42.5% to 303,416 BOE/d [3]. - Lease operating expenses totaled $460 million, a 27.4% increase from the previous year, while total operating expenses rose 47.8% to $1.9 billion [4]. - APA generated $877 million in cash from operating activities and reported a free cash flow of $103 million, compared to $94 million a year ago [4]. Guidance - For Q3, APA expects adjusted production to average 388,000 BOE/d, with oil volumes projected at 208,000 Bbl/d [5]. - The company has set its upstream capital expenditure for the year at $2.7 billion or more [5]. Market Position & Outlook - The consensus estimate for APA has seen a downward shift of -6.49% recently, indicating mixed investor sentiment [7]. - APA holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [9]. - The stock has an aggregate VGM Score of B, with a strong value score but weaker momentum [8]. Industry Comparison - APA operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where CNX Resources Corporation has seen a 6.5% gain over the past month [10]. - CNX Resources reported revenues of $346 million, reflecting a year-over-year increase of 2.7%, and has a Zacks Rank 3 (Hold) as well [10].

Core Viewpoint - APA Corporation is considering the sale of significant drilling properties in the Permian Basin, valued at approximately $1 billion, as part of a strategy to streamline operations and reduce its substantial debt of $6-$7 billion [1] Group 1: Importance of the Permian Basin - The Permian Basin is a prolific oil-producing region, with APA's assets in this area producing over 22,000 barrels of oil equivalent per day, of which oil constitutes about 60% [2] - The decision to sell these assets reflects APA's strategic pivot towards focusing on shale operations, which are viewed as core growth drivers [2] Group 2: Financial Implications of the Asset Sale - APA aims to reduce its debt by $2 billion over the next three years, with proceeds from the sale of the Permian Basin assets expected to significantly contribute to this goal [3] - The company has already made progress in debt reduction through a previous asset sale totaling nearly $700 million [3] Group 3: Impact on Financial Health - The divestment is anticipated to strengthen APA's balance sheet, providing increased financial flexibility and potentially improving its credit rating [4] - Focusing on high-margin shale operations is expected to enhance profitability and shareholder value in the long term [4] Group 4: Broader Industry Context - The U.S. oil and gas industry is currently experiencing a trend of mergers and acquisitions, with companies seeking to consolidate and expand their portfolios [5] - APA's activities, including the acquisition of Callon Petroleum and the sale of non-core assets, align with this industry trend [5] Group 5: Market Position and Strategic Moves - APA has positioned itself as a key player in the evolving oil and gas landscape, demonstrating flexibility in managing its portfolio by acquiring high-value assets while divesting non-core properties [6] - The potential $1 billion deal for the Permian Basin assets is a strategic step towards optimizing operations and strengthening financial position [6] Group 6: Considerations for Investors - Investors should monitor APA's shift towards shale operations, which are expected to be the primary growth engine moving forward [7] - The market's reaction to the asset sales will be a key indicator of investor sentiment, with successful redeployment of proceeds into core operations potentially leading to a positive stock trajectory [8] - Long-term growth prospects depend on APA's ability to execute its strategic plan effectively, focusing on high-margin shale operations and disciplined portfolio management [8] Conclusion - APA's exploration of the sale of its Permian Basin assets is a strategic move aimed at optimizing its portfolio and reducing debt, with significant financial and operational implications [9]