Ticonderoga Reiterates a 'Buy' on Apache Corp. (APA); Raising Estimates and PT - Brushing Off Adversity in Q1
Tweet
Share
E-mailGet Alerts APA Hot Sheet
Price: $40.47 +1.18%
Rating Summary:
19 Buy, 26 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 26 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Ticonderoga reiterates a 'Buy' on Apache Corp. (NYSE: APA), raises PT to $155.
Ticonderoga analyst says, "Despite headwinds across the portfolio that we had expected to dip production slightly (cyclones in Australia, unrest in Egypt, freeze-ups across West Texas), APA managed to bump sequential production by about 0.5%. Combined with high oil prices, this production gain gave the company its third best quarter in its history. We are raising our estimates on better expected production and realizations going forward, and our NAV rises to $192."
"Given Q1 cash flow of $2.2 B, and a forecast of $9.9 B for the year, APA wouldn’t have any trouble paying down debt. However, much of APA’s revenue is coming from overseas, and debt is in the US, so for tax reasons management is in no rush. We forecast modest debt reductions in 2011. Guidance for 2011 capex is $7.5 billion, but we expect it to be higher, with the difference spent mostly in North America. We are modeling $7.9 billion in capex for the year."
For more ratings news on Apache Corp. click here and for the rating history of Apache Corp. click here.
Shares of Apache Corp. closed at $126.92 yesterday.
Ticonderoga analyst says, "Despite headwinds across the portfolio that we had expected to dip production slightly (cyclones in Australia, unrest in Egypt, freeze-ups across West Texas), APA managed to bump sequential production by about 0.5%. Combined with high oil prices, this production gain gave the company its third best quarter in its history. We are raising our estimates on better expected production and realizations going forward, and our NAV rises to $192."
"Given Q1 cash flow of $2.2 B, and a forecast of $9.9 B for the year, APA wouldn’t have any trouble paying down debt. However, much of APA’s revenue is coming from overseas, and debt is in the US, so for tax reasons management is in no rush. We forecast modest debt reductions in 2011. Guidance for 2011 capex is $7.5 billion, but we expect it to be higher, with the difference spent mostly in North America. We are modeling $7.9 billion in capex for the year."
For more ratings news on Apache Corp. click here and for the rating history of Apache Corp. click here.
Shares of Apache Corp. closed at $126.92 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- APA Corp. (APA) PT Raised to $49 at Wells Fargo
- UBS Reiterates Buy Rating on HF Sinclair (DINO)
- UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
