APA Corp
APA: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$91.00 | Bdcv | Vjcrlfwmt |
APA Earnings: Delays to Suriname Deal a Blow to Our Fair Value Estimate
We reduce our fair value estimate for no-moat-rated APA to $45 from $54, mostly due to delays from its Suriname development. Suriname will be APA's growth engine, producing low-cost volumes at Brent exposed prices. Any delays to these barrels have a significant impact on the firm's value. Our forecast now reflects first oil in 2028, whereas our model had been expecting volumes in 2026. We thought as a final investment decision neared, a first oil date might be moved up as new information was gathered, but that has not been the case.