Wang & Lee Group board approves 250-to-1 reverse share split
On Friday, Raymond (NSE:RYMD) James maintained its Outperform rating on Apache Corp . (NASDAQ:APA) and raised the stock’s price target from $23.00 to $25.00. The adjustment follows Apache’s first-quarter results and the company’s updated financial guidance for the year 2025. Stifel analysts highlighted Apache’s strong performance, noting it surpassed expectations in both production and earnings per share. According to InvestingPro data, Apache trades at an attractive P/E ratio of 6.28x and shows a solid EV/EBITDA of 2.13x, though 13 analysts have recently revised their earnings expectations downward.
The revised financial model takes into account the lower capital expenditure guidance provided by Apache for 2025, reflecting a response to the current weaker oil environment. Raymond James’ production forecast of 463 thousand barrels of oil equivalent per day (Mboe/d) aligns with the guidance provided by Apache and the consensus on the Street. The firm’s estimated total spending for Apache in 2025 is approximately $2.28 billion, which is slightly below the Street’s forecast but consistent with Apache’s own projections. InvestingPro analysis indicates a "GOOD" overall Financial Health score, with the company maintaining its dividend payments for 55 consecutive years, currently yielding 5.77%.
Apache plans to reduce its Permian rig count from eight to six by the end of the second quarter, aiming to maintain production levels in the region at around 126 Mboe/d. The company’s cost-cutting initiatives are reportedly progressing faster than expected, with $130 million in savings realized in 2025—more than double the initial guidance of $60 million. By the end of 2025, Apache anticipates achieving run-rate savings of $225 million, surpassing the previously forecasted range of $100-125 million.
The financial firm also pointed to Apache’s attractive free cash flow to enterprise value (FCF/EV) yield, which stands at approximately 11% for 2025. The increase in the target price to $25 from $23 is attributed to the higher commodity prices since the last report by Raymond James. This price target revision reflects the firm’s confidence in Apache’s financial strategy and operational efficiency moving forward.
In other recent news, APA Corporation reported a strong financial performance for the first quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $1.06, compared to the forecasted $0.74. The company’s revenue also exceeded predictions, reaching $2.61 billion against the anticipated $2.11 billion. APA Corporation has declared a regular cash dividend of 25 cents per share, payable on August 22, 2025, to shareholders on record as of July 22, 2025. In a strategic move to streamline its leadership, APA promoted Aneil Kochar to vice president and treasurer, following Ben C. Rodgers’ advancement to chief financial officer.
Furthermore, APA Corporation announced the sale of its New Mexico Permian properties for $68 million, with plans to allocate most proceeds towards debt reduction. The company has also been focusing on cost reduction initiatives, achieving $800,000 per well in cost savings in the Permian Basin. Analyst firms, including Raymond James, noted APA’s significant progress in operational efficiencies and cost management. These recent developments highlight APA Corporation’s ongoing efforts to enhance financial performance and shareholder value.
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