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HOUSTON - APA Corporation (NASDAQ:APA), an energy company with a market capitalization of $7.38 billion that InvestingPro analysis suggests is currently undervalued, announced the completion of its previously disclosed New Mexico asset sale for approximately $575 million in net proceeds after closing adjustments and transaction costs, according to a company statement released Wednesday.
The transaction, which closed in June, reduced APA’s second-quarter U.S. production by approximately 1.8 thousand barrels of oil equivalent per day (MBoe/d), with oil comprising 33% of that output. The company, which generated $10.15 billion in revenue over the last twelve months, had its full-year 2025 U.S. production guidance issued in May account for approximately 13.0 MBoe/d from these assets in the second half of 2025, with oil representing 50% of that production.
APA also reported it curtailed approximately 10 million cubic feet per day of U.S. natural gas production and 750 barrels per day of U.S. natural gas liquids during the second quarter in response to weak or negative pricing at the Waha hub.
The company disclosed its estimated average realized prices for the second quarter, with U.S. oil at $64.85 per barrel, U.S. natural gas liquids at $19.80 per barrel, and U.S. natural gas at $1.00 per thousand cubic feet. International prices were higher, with oil at $66.20 per barrel, natural gas liquids at $41.60 per barrel, and natural gas at $4.00 per thousand cubic feet.
APA reported Egypt tax barrels of 32-33 MBoe/d and dry hole costs of $30-35 million before tax. The company also noted a net gain on oil and gas purchases and sales of $158 million before tax, which includes the impact of realized gains or losses from commodity derivatives.
The company’s estimated weighted-average basic common shares for the second quarter is 361 million. APA will discuss its complete second-quarter 2025 results during a conference call scheduled for August 7. The company, which maintains a healthy dividend yield of 4.88% and trades at a P/E ratio of 7.37x, continues to demonstrate strong profitability with $5.97 billion in EBITDA over the last twelve months. For deeper insights into APA’s financials and exclusive analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Permian Resources Corporation has completed its acquisition of leasehold and royalty interests in Eddy and Lea Counties, New Mexico, from APA Corporation. This transaction, involving oil and natural gas properties in the Delaware Basin, expands Permian Resources’ holdings to approximately 450,000 net acres in the Permian Basin region. No financial terms were disclosed for this acquisition. Meanwhile, APA Corporation has announced a leadership change with the termination of D. Clay Bretches, Executive Vice President of Operations, effective June 4, 2025. Additionally, APA Corporation has promoted Aneil Kochar to vice president and treasurer, succeeding Ben C. Rodgers, who advanced to chief financial officer. In another development, APA Corporation declared a regular cash dividend of 25 cents per share, payable on August 22, 2025, with a record date of July 22, 2025. Furthermore, Raymond James has maintained its Outperform rating on Apache Corp., a subsidiary of APA, and raised the stock’s price target from $23.00 to $25.00, citing strong production and earnings performance. These developments reflect ongoing strategic and financial activities within both companies.
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