Valued at a market cap of $9.3 billion, APA Corporation (APA) is an independent energy company, primarily engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. With operations in the U.S., Egypt, and the North Sea, the company is a significant player in the Permian Basin and is expanding its international footprint. The Houston, Texas-based company is set to release its fiscal Q3 earnings results after the market closes on Wednesday, Nov. 6.
Ahead of this event, analysts expect the oil and natural gas producer to report a profit of $1.06 per share, a decline of 20.3% from $1.33 in the same quarter last year. The company has surpassed Wall Street’s EPS estimates in two of the past four quarters while missing on two other occasions. In the most recent quarter, APA surpassed the consensus EPS estimate by a margin of 23.2%.
For fiscal 2024, analysts expect APA to report an EPS of $4.04, a 10.8% decrease from $4.53 in fiscal 2023.
APA Corporation experienced a significant decline of 39.4% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 38.7% increase and the Energy Select Sector SPDR Fund's (XLE) marginal rise over the same period.
Despite reporting better-than-expected Q2 adjusted EPS of $1.17 and revenue of $2.8 billion on Jul. 31, shares of APA Corporation fell marginally the next day due to the announcement of plans to curtail natural gas production by 90 million cubic feet per day (MMcfpd) in Q3. Concerns over weaker natural gas prices and ongoing high inventory levels also drove the drop.
Overall, analysts' consensus view on APA Corporation stock is cautious, with a "Hold" rating. Out of 25 analysts covering the stock, eight recommend a "Strong Buy," 13 give a "Hold" rating, one suggests a "Moderate Sell" rating, and three advise a "Strong Sell."
The average analyst price target for APA is $34.65, implying a potential upside of 37.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
