APA Corporation (APA)
NASDAQEnergyOil & Gas E&pSnapshot 2026-07-08
$35.06+3.12%
Close 2026-07-08 · 1-day change
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Track APA free→APA keeps cutting costs and aims to save $450 million by end of 2026. U.S. oil production is steady at about 126,000 barrels per day. The company has beaten earnings estimates in recent quarters. Its valuation is cheap compared to peers, with a price-to-earnings ratio near 8.
Oil prices or demand could weaken, hurting revenue and profits. Cost savings may fall short of targets. Earnings estimates have recently been revised down. The stock has sold off sharply, reflecting market concerns.
The price is about 15% below our fair value near $39, reflecting some caution. Our fair value aligns with the Street median around $40. The market expects modest or negative growth over the next 3-5 years, which may be too pessimistic if cost savings and production targets hold.
Breaks if: controllable spend savings fall below $350 million run-rate by end 2025 or fail to progress toward $450 million by end 2026
APA aims to achieve $450 million in controllable spend savings by the end of 2026.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. Achieved $350 million in run-rate controllable spend savings by year-end 2025. The trajectory shows progress towards the $450 million target by 2026, with management reiterating this goal consistently.
“Now targeting $450 million run-rate controllable spend savings by year-end 2026.”
“Achieved $350 million in run-rate controllable spend savings by year-end 2025.”
“Expect to achieve $350 million in run-rate controllable spend savings by year-end 2025.”
Breaks if: EPS falls below $6.33 in FY26
Breaks if: U.S. oil production falls below 125,000 barrels per day in FY25
APA is focused on increasing U.S. oil production, with a target range of 125,000 to 127,000 barrels per day for 2025.
Stated in 4 of last 4 quarters. U.S. oil production guidance is maintained at 125,000 to 127,000 barrels per day for 2025. The company has consistently focused on increasing production, with a strong growth trajectory observed.
“Maintaining its full-year U.S. oil production guidance range of 125,000 to 127,000 barrels per day.”
“Forecasting strong U.S. oil growth in 2024, approximately 8% year-over-year.”
“Expect U.S. oil production to increase 8% from second-quarter 2024 to fourth-quarter 2024.”
“Expects U.S. oil production to increase 8% from second-quarter 2024 to fourth-quarter 2024.”