Benchmark Starts Apache Corp. (APA) at Buy, 'The below-average EV/EBITDA multiple should rise'

Benchmark analyst Subash Chandra initiates coverage on Apache Corp. (NASDAQ: APA) with a Buy rating and a price target of $46.00.

The analyst comments "APA has significant leverage to a recovery in global energy prices. The company’s assets in Suriname (worth $4 per share @ $80 oil, by our estimate) and contract to sell LNG beginning August 1 are differentiated. Domestic assets are a source of FCF while the Suriname development nears a declaration of commerciality. The below-average EV/EBITDA multiple should rise as Suriname increasingly reflects in the share price. The multiple is currently burdened by domestic assets which are viewed as gassy and mature. "

For an analyst ratings summary and ratings history on Apache Corp. click here. For more ratings news on Apache Corp. click here.

Shares of Apache Corp. closed at $37.28 yesterday.

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