| Brought their leverage down to 0.75x EBITDA. Their target? $3 billion in total debt by 2030 - retiring over half their outstanding debt from the Callon acquisition. APA just beat Q2 earnings while growing free cash flow 6% despite lower commodity prices. They returned over 100% of free cash flow to shareholders through dividends and buybacks. The company is forecasting a 12% free cash flow yield for 2025 at current strip prices. APA cut their rig count from 6.5 to 6 rigs but maintained stable production. They've saved $200 million year-to-date through CAPEX and G&A cuts. Instead of chasing flashy initial production rates, they're maximizing total recovery with smaller, more capital-efficient wells. Their Egypt operations just expanded by 2 million acres, bringing their total to 7.5 million acres. Nothing comparable exists in the United States. Revised contract terms are delivering a 10% production increase and 30% price increase by year-end. Their third-party natural gas profits jumped $30 million this quarter - a 25% gain. Your Action Plan APA's production cost sits around the 40s. Crude is trading in the 60s. Now their borrowing costs are dropping. The company expects Q3 and Q4 free cash flow to jump by $200 million combined, putting them on track for roughly $800 million in FCF generation for 2025. If crude oil pulls back, APA will feel it. That's reality. But the fundamental transformation happening here suggests any weakness should be bought, not feared. The market started pricing this in two days ago when APA moved 8x more than crude. Now that rates are officially lower, the thesis just got stronger. Apache isn't just riding the energy wave - they're executing a complete financial makeover while the Fed just made capital cheaper. I've been doing this for a long time. You can spot these setups. The rate cut delivered. Now watch what disciplined operators do with expanding margins. These are exactly the type of plays we hunt for in Catalyst Cashouts. If you'd like to learn more about this opportunity and others, click here to get started. |
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