Apache Corp. (APA) is scheduled to report its Q2 2012 results on August 2, 2012, after the bell. The Street expects EPS and revenue of $2.53 and $4.26B, respectively.
In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from APA and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
In the last quarter, it reported $3.00 EPS, failing to meet analyst estimates of $3.09.
The consensus EPS estimate is $2.53 based on 26 analysts' estimates, down from $3.22 a year ago. Revenue estimates are $4.26B, down from $4.34B a year ago. The median target price by analysts for the stock is $116.50.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On May 7, 2012, Barclays reiterated Overweight rating for the company.
- On May 4, 2012, RBC Capital Markets reiterated Sector Perform rating for the company.
- On March 6, 2012, Global Hunter Securities initiated Buy rating for the company.
- On May 30, 2012, Apache Corp announced that the Board of Directors of the Company have declared regular cash dividends on the Company's common shares and 6% Mandatory Convertible Preferred Stock, Series D. The dividend on common shares is payable on August 22, 2012, to stockholders of record on July 23, 2012, at the rate of $0.17 per share.
- On April 4, 2012, Apache Corporation announced that it has priced $3 billion in aggregate principal amount of notes in a public offering consisting of $400 million principal amount of 1.75% notes due in 2017, $1.1 billion principal amount of 3.25% notes due in 2022, and $1.5 billion principal amount of 4.75% notes due in 2043.
- On March 1, 2012, Yara International ASA (Yara) announced that it has signed a heads of agreement with Orica and Apache via a joint venture to build a 330,000 metric tons ammonium nitrate plant on the Burrup peninsula, and to distribute ammonium nitrate and other explosives products to the mining customers in the Pilbara region.
- On February 16, 2012, Apache Corporation announced that it anticipate production will increase in the range of 7%-13% in fiscal 2012.
- On February 12, 2012, Tap Oil Limited announced that it has executed an agreement to sell its wholly owned subsidiary, Tap (Harriet) Pty Ltd, to a subsidiary of Apache Corporation (Apache) for USD 10 million.
- On February 9, 2012, Apache Corporation announced that it has raised the regular quarterly cash dividend on the Company's common shares to $0.17 per share, an increase of 13%. The dividend on common shares is payable on May 22, 2012, to stockholders of record on April 23, 2012.
- On February 1, 2012, Apache Corporation announced that its Apache Energy Limited subsidiary has completed previously announced plans to acquire an interest in Burrup Holdings Limited, owner of an ammonia fertilizer plant in the Burrup Peninsula region of Western Australia, from ANZ Bank.
Chesapeake Energy Corporation (CHK), Chevron Corporation (CVX), Devon Energy Corporation (DVN), Occidental Petroleum Corporation (OXY), and Exxon Mobil Corporation (XOM) are considered major competitors for Apache and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.
Competitors' Latest Developments
- On July 25, 2012, Chevron announced that it declared a quarterly dividend of $0.90 per share, payable September 10, 2012, to holders of common stock as shown on the transfer records of the Corporation at the close of business on August 17, 2012.
- On July 25, 2012, Exxon Mobil announced that it has declared a cash dividend of $0.57 per share on the Common Stock, payable on September 10, 2012 to shareholders of record of Common Stock at the close of business on August 13, 2012.
- On July 24, 2012, Reuters reported that Iraq has decided to blacklist Chevron and bar it from signing any oil deals with the oil ministry after the U.S. major purchased stakes in two blocks in Iraq's Kurdistan, the oil ministry said in a statement on July 24, 2012.
- On July 20, 2012, Occidental Petroleum Corporation announced the appointment of Cynthia L. Walker as Executive Vice President and Chief Financial Officer, effective August 6, 2012.
- On July 19, 2012, Chevron announced that its subsidiaries have completed a transaction to acquire interests in two blocks in the Kurdistan Region of Iraq. Chevron will acquire Reliance Exploration & Production DMCC's 80% interest and operatorship of the production sharing contracts (PSCs) covering the Rovi and Sarta blocks.
- On July 19, 2012, Dow Jones reported that Chevron Corp has signed a preliminary deal with Reliance Industries Ltd that would see the U.S. company take stakes in two oil exploration blocks in the Kurdish region of Iraq.
- On July 17, 2012, CNBC TV18 reported that Reliance Industries Ltd is in talks with Chevron Corp, to sell its assets in Iraq at a valuation of close to USD200 million.
- On July 9, 2012, Reuters reported that Danish oil and shipping group AP Moeller Maersk A/S (Maersk) announced that a Danish state-run fund, Nordsofonden, had taken a 20% interest in the Danish Underground Consortium owned by Maersk, Chevron Corp and Royal Dutch Shell Plc (Shell).
- On July 5, 2012, Reuters reported that Exxon Mobil Corp reported a snag in the number 2 amine treater at its 560,640 barrel-per-day (bpd) refinery in Baytown, Texas, according to a filing with the U.S. National Response Center.
- On July 3, 2012, Reuters reported that The U.S. Justice Department is probing Chesapeake Energy Corp and Encana Corp for possible collusion after a Reuters report showed that top executives of the two rivals plotted in 2010, to avoid bidding against each other in Michigan land deals, a source close to the probe said.
- On July 2, 2012, Chesapeake Energy Corp announced that Global Infrastructure Partners (GIP) has closed the previously announced acquisition of all of Chesapeake's ownership interests in Chesapeake Midstream Partners LP for $2.0 billion, resulting in an anticipated pretax gain to Chesapeake of approximately $1.0 billion.
- On June 26, 2012, Reuters reported that Exxon Mobil reported a leak in a supply line on the T1 tower at its 502,000 barrel per day (bpd) refinery in Baton Rouge, Louisiana, that led to a release of benzene, according to a filing with the National Response Center.
- On June 25, 2012, Attorneys with Allen Stewart, P.C. announced that a group of Pennsylvania landowners represented by the Dallas-based law firm have settled their claims against oil and gas giant Chesapeake Energy Corp for $1.6 million.
- On June 22, 2012, Reuters reported that NK Rosneft' OAO has been in talks with Exxon Mobil over the possibility of teaming up with the American company to tap Iraq's huge West Qurna-1 oilfield, Kommersant daily reported.
- On June 21, 2012, Chesapeake Energy announced that Archie W. Dunham, has been appointed by the Board as Chesapeake's new independent Non-Executive Chairman. Aubrey K. McClendon has relinquished the position of Chairman but remains a Director and will continue to serve as Chesapeake's Chief Executive Officer and as President.
- On June 21, 2012, Reuters reported that Exxon Mobil will reconfigure its Fawley refinery, permanently decommissioning one crude distillation unit. The reconfiguration includes the decommissioning of one of Fawley's three 'pipestills' -installations more commonly known as distillation towers, in which crude oil is boiled to separate it into its component parts.
- On June 20, 2012, Chevron announced that its wholly owned subsidiary Chevron Global Energy Inc. (Chevron) will be assigned a 50% working interest in Blocks 42 and 45 offshore Suriname through an agreement with Kosmos Energy.
- On June 20, 2012, Zamansky & Associates, LLC announced the filing of a class action lawsuit under the Employee Retirement Income Security Act (ERISA) on behalf of all employee and former employee participants in the Chesapeake Energy Corp`s Savings and Incentive Stock Bonus Plan (Plan).
- On June 19, 2012, Reuters reported that Chesapeake Energy is eliminating about 70 jobs from its North Texas operations as the U.S. oil and gas producer seeks to fill funding gap. The cuts, primarily in areas such as public affairs and community relations, represent 8% of its workforce in the prolific Barnett Shale field.
- On June 18, 2012, Reuters reported that Chevron Corp has signed a deal to supply additional liquefied natural gas to Tokyo Electric Power Co.(TEPCO), as well as an equity stake in the Wheatstone project in Australia.
- On June 12, 2012, Chesapeake Energy Corp announced that its Board of Directors has declared a $0.0875 per share quarterly dividend that will be paid on July 31, 2012 to common shareholders of record on July 16, 2012.
- On June 8, 2012, Chesapeake Midstream Partners LP (CHKM) announced that Global Infrastructure Partners has agreed to acquire all of Chesapeake Energy Corporation's ownership interest in CHKM for $2.0 billion.
- On June 6, 2012, Reuters reported that Chesapeake Energy is in late-stage talks to sell nearly all of its pipeline assets for over $4 billion to Global Infrastructure Partners (GIP), according to a person familiar with the matter, as the Company scrambles to close a $9 billion to $10 billion funding shortfall.
- On June 6, 2012, Grant & Eisenhofer P.A. announced that it has filed a class action lawsuit asserting claims under the Securities Exchange Act of 1934 on behalf of those who purchased or otherwise acquired shares of Chesapeake Energy Corp. between and including April 30, 2009 and May 10, 2012.
- On June 1, 2012, Reuters reported that Exxon Mobil, plans to build a multi-billion dollar chemical plant in Texas to take advantage of cheap North American shale gas, according to a U.S. environmental filing seen by Reuters.
- On May 30, 2012, Reuters reported that Chesapeake Energy seeking to sell around 57,000 acres of leaseholdings in East Texas, as the Company works to raise cash to meet an expected funding gap, according to a prospectus released by one of its advisers.
- On May 26, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Chesapeake Energy Corporation. Chesapeake CEO Aubrey K. McClendon (McClendon) currently owns roughly 1.35 million shares of Chesapeake stock (presently worth approximately $24 million).
- On May 26, 2012, Reuters reported that Carl Icahn revealed he had bought a 7.6% stake in Chesapeake Energy Corp and called for the natural gas producer to replace at least four directors, saying the board has failed "in a dramatic fashion" in its oversight of management.
- On May 24, 2012, Reuters reported that Chesapeake Energy Corporation has put 504,000 acres in the DJ Basin in Wyoming and Colorado up for sale, as the U.S. energy company scrambles to raise cash to close a $9 billion to $10 billion funding shortfall.
- On May 22, 2012, Reuters reported that Nigeria expects to renew onshore oil licenses with Chevron and Royal Dutch Shell Plc by June.
- On May 16, 2012, Dow Jones reported that the European Commission approved the proposed acquisition of the Angolan company Angola LNG by BP Plc, Chevron, Eni SpA, Sociedade Nacional de Combustiveis de Angola (Sonangol) of Angola and Total SA. The joint venture (JV) will produce liquefied natural gas in Angola, to be sold on to customers around the world for re-gasification.
- On May 14, 2012, Chevron announced that its Australian subsidiaries have signed a non-binding Heads of Agreement with Tohoku Electric Power Company Incorporated for the delivery of liquefied natural gas from the Chevron-operated Wheatstone natural gas project in Australia.
- On May 11, 2012, Pomerantz Haudek Grossman & Gross LLP announced that it has filed a securities class action the federal District Court in Oklahoma City on behalf of all persons who purchased Chesapeake Energy Corporation common stock between April 30, 2009 and April 17, 2012.
- On May 10, 2012, Dow Jones reported that Chevron Corp and Royal Dutch Shell Plc are set to be named by Ukraine to explore two vast fields for shale gas exploration, The Financial Times reported.
- On May 3, 2012, Chesapeake Energy Corporation announced that the Company and its Chairman and CEO, Aubrey K. McClendon, have been notified by the Securities and Exchange Commission (SEC) that its Fort Worth Regional Office has commenced an informal inquiry and requested that the Company and Mr. McClendon retain certain documents.
- On May 1, 2012, Chesapeake Energy Corporation announced that its Board of Directors has renegotiated the terms of the Company's Founder Well Participation Program with Chairman and Chief Executive Officer Aubrey K. McClendon to provide for the early termination of the FWPP on June 30, 2014, 18 months before the end of its current term on December 31, 2015.
- On May 1, 2012, Law Firm Johnson & Weaver, LLP announced that it is investigating whether certain officers and directors of Chesapeake Energy Corp. breached their fiduciary duties and committed securities fraud.
The stock has a market capitalization of $34.24B and traded Monday at $87.61 with a 52-week range of $73.04 - $124.05. The stock's year-to-date performance has been -2.75%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.