Seeking Alpha

Apache faces difficult choice in Egypt: Get out or wait it out

  • Apache (APA) faces a dilemma in Egypt: whether to sell its substantial oil and natural gas operations there or wait out the recent violence.
  • "Investors have plenty of risk in the stock market. They don't want civil war risk in their portfolios, too," Oppenheimer's Fadel Gheit says, but selling now would mean resorting to fire-sale prices.
  • Analysts at Raymond James say fears about Egypt for APA's stock are overdone: "Political uprisings have happened before and the company has never lost a single barrel of production."
  • APA also is among energy companies exposed to Libya, where lawlessness is spinning out of control.
Comments (3)
  • frankpeel@gmail.com
    , contributor
    Comments (120) | Send Message
     
    The worries about Apache in Egypt are overdone.
    The army owns or controls about 25% of the economy
    So it has a strong vested interest in keeping the economy
    going and undamaged. This is demonstrated by the number
    of shops and businesses and plants that rapidly reopened
    even though the violence is far from over and may continue
    for some time.

     

    23 Aug 2013, 10:35 AM Reply Like
  • MDHJr
    , contributor
    Comments (74) | Send Message
     
    Sure sell your assetts at the bottom.....great idea
    23 Aug 2013, 11:28 AM Reply Like
  • Crazyinvestor
    , contributor
    Comments (3) | Send Message
     
    Long term I think Apache should be alright at least I am hoping so. I'm down way too much!
    23 Aug 2013, 05:14 PM Reply Like
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