APA Corp. on upside catalyst watch at Citi with more exposure to global LNG

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APA Corp. (NASDAQ:APA) +2.3% in Tuesday's trading as Citi analysts opened a 90-day upside catalyst watch, anticipating a period of strength for the stock even after outperforming their oil and gas E&P peers, as multiple catalysts converge.

Maintaining a Buy rating and raising its price target to $52 from $43, Citi expects the commencement of a gas sales contract with Cheniere Energy will give APA (APA) exposure to global liquefied natural gas prices, an uplift relative to domestic LNG prices.

Citi also sees APA's (APA) free cash flow doubling in this year's H2 compared to H1 given growing production, lower capex and potential for higher commodity prices; ongoing, robust cash returns; and the growing probability that exploration discoveries in offshore Suriname will result in a project to develop and produce the discovered resource.

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