APA Corporation (APA)

Over the past six months, APA Corp.'s stock price has declined, underperforming the S&P 500 Index due to concerns over declining natural gas prices and elevated inventory levels. APA announced a definitive agreement to acquire Callon Petroleum Company in January 2024, which was completed, and in May 2024, APA announced increased expected annual cost synergies from the transaction by 50% to $225 million. In May 2024, APA Corp. announced its Q1 2024 results, reporting net income attributable to common stock of $132 million, or $0.44 per diluted share, and announced a high-quality oil discovery at the King Street #1 well in Alaska.

APA Corporation's products are subject to commodity price volatility, and demand for oil and natural gas can be influenced by seasonal factors. Increased demand for heating in winter months for natural gas and increased demand for transportation fuels during summer driving seasons for oil can affect prices. Seasonal travel demand can provide support to crude oil prices.

APA Corporation is an independent energy company involved in the exploration, development, and production of crude oil, natural gas, and NGLs, operating within the Energy sector, specifically in the Oil & Gas E&P industry. APA's core business segments include Upstream Exploration and Production, Midstream Operations, and Energy Transition Initiatives. Its major products are crude oil, natural gas, and natural gas liquids.

APA Corporation has a global presence with operations in the United States, Egypt, and offshore the United Kingdom in the North Sea. In the U.S., its assets are concentrated in the Permian Basin in West Texas, including the Midland and Delaware sub-basins, and it also has legacy operations offshore in the Gulf of America. APA also has active development, exploration, and appraisal operations ongoing in Suriname, and exploration interests in Uruguay, Alaska, and other international locations.

APA Corporation's brand reputation has been influenced by its commitment to sustainability, which aligns with global energy transition goals. However, the company's stock performance and concerns over declining natural gas prices have posed challenges. A Seeking Alpha article downgraded APA to a "HOLD" rating, citing that APA's assets generate below-average rates of return.

APA Corporation's stock ownership is a mix of institutional, retail, and individual investors. Approximately 71.88% of the company's stock is owned by Institutional Investors, 0.44% by Insiders, and 27.68% by Public Companies and Individual Investors. Major institutional owners include Vanguard Group Inc., Hotchkis & Wiley Capital Management Llc, Harris Associates L P, State Street Corp, BlackRock, Inc., Charles Schwab Investment Management Inc, Invesco Ltd., Smead Capital Management, Inc., Geode Capital Management, LLC, and Dimensional Fund Advisors LP.