APA Corp.: 10.6% Combined Yield

Nov. 23, 2022 3:01 AM ETAPA Corporation (APA)3 Comments

Summary

  • APA Corporation has good and bad aspects that investors need to think about.
  • The negative consideration is its proven reserves. Inventory levels are on the low side.
  • The positive is that APA has a 10.6% combined yield going forward.
  • Since the stock is priced around 5x next year's free cash flow, the risk reward here is attractive.
  • I also discuss the interest rate on its debt, and how to think about this.
  • Looking for more investing ideas like this one? Get them exclusively at Deep Value Returns. Learn More »
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Investment Thesis

APA Corporation (NASDAQ:APA) has oil and gas properties in the United States, Egypt, and the United Kingdom, plus exploration offshore Suriname. Approximately 68% of its production is based in the US.

Like all oil and gas companies, there are

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