It feels like it wasn't all that long ago when Apache (NYSE:APA)
was one of the most well-regarded energy companies in the game.
Management had a knack for acquiring assets from larger companies at
attractive prices and driving a surprising amount of productivity out of
them. Along the way, the company developed a very broad portfolio that
was well-balanced between oil/gas, individual basins, and
near-term/long-term productivity.
Unfortunately, there's a blurry line “diversified” and “unfocused”, and
Wall Street has come to the conclusion that Apache is too much of the
latter these days. What's more, there are now substantial questions
about the company's asset mix and its ability to generate good returns
from those assets. Management is responding to these concerns with an
asset sale program, and while Egypt is going to loom large in investors'
minds for a while yet, I believe these shares are meaningfully
undervalued today.
Please follow this link for more:
http://www.investopedia.com/stock-analysis/071013/can-apache-regain-its-reputation-apa-xom-apc-eog.aspx
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