Morningstar Rating

Stock Research and Analysis

by Mark Hanson, CFA

Bulls Say

Apache is patient and deliberate. Big moves have been infrequent--Australia in 1993, Egypt in 1996, the North Sea in 2003 (and again in 2011), Gulf of Mexico deepwater in 2010--but have generally worked out well for the firm.
Apache's portfolio includes a mix of oil and gas and near-term and longer-dated assets, which should help mitigate project risk or potential swings in commodity prices.
Although Apache's international projects require greater amounts of upfront spending, they produce at plateau levels for upward of a decade with minimal maintenance capital required. Read more 

Bears Say

Deepwater drilling encompasses a unique set of challenges, including long lead times between exploration and production and managing supply-chain complexities.
Apache's big bet on U.S. onshore activity means the firm must now deliver on its promise of becoming a top-tier exploration and development company.
Political risk and burdensome regulations are a fact of life in international markets, as seen most recently in Egypt. Read more 

Management

Apache is led by President and CEO John Christmann, who took over from long-time leader Steve Farris earlier this year. Christmann was previously chief operating officer for Apache's North American division and has been with the company for close to   Read more 

Profile

Apache, based in Houston, Texas, is one of the largest independent exploration and production companies in the world. Its asset base includes conventional and unconventional   Read more 

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