Apache Energy Corporation is an independent hydrocarbon exploration company founded in 1954. The company is involved in the exploration, development and production of natural gas, oil and other hydrocarbon liquids. The company primarily operates in North America with significant projects in Egypt and the UK North Sea. Apache Corporation trades on the New York and Chicago stock exchanges under the symbol APA.
Apache stock news
Apache stock price forecast is being significantly affected by the ongoing coronavirus pandemic and the drastic decrease in global demand for oil.
As much of the world’s population remains on some form of lockdown and major airlines are all grounded, the supply of oil continues to accumulate and drive down prices. Oil prices are down more than 30 per cent and are expected to stay down long after the economy begins to jar back to life.
This is due to huge volumes of oil currently being pumped into storage and the extended period it will take for supply and demand to normalise. At the time of writing the most pressing concern for the world’s energy markets is if there will even be sufficient storage capacity as some countries are resorting to floating barges to store excess production.
While Apache stock has dropped dramatically in the first quarter of 2020 it has recently begun outpacing other energy companies and the S&P 500 in its recovery.
Trade Apache - APA CFD
APA stock analysis
Apache stock dropped drastically in the latter part of March in the market crash caused by the coronavirus pandemic. Looking at recent APA share price history it is easy to see that the stock price took a significant hit.
APA stock analysis shows that it closed at a relatively weak $25.13 per share on March 4, 2020. This was down from the 52-week high of $33.77 as energy companies suffered amid the price war between Saudi Arabia and Russia and their refusal to cut production. As the full extent of the coronavirus impact on the global economy was realised, APA stock crashed to $9.55 on March 9 and continued to decrease before closing at a low of $4.02 per share on April 1.
Still, according to the latest Apache stock news, the company has been faring significantly better than other energy companies, mainly due to its large geographically diverse reserve base and solid 2019 performance.
While it may seem that Apache stock has suffered a tremendous amount, investors do show a sense of confidence in the company’s ability to withstand the prolonged downturn in the market and be a viable competitor when the rebound inevitably comes.
Apache major rivals
Apache operates in the diverse oil and gas sector. The industry is commanded not only by corporations but also by national security interests and geopolitical relationships. Apache is considered a medium-sized player in the industry which is highly concentrated and whose largest players are state owned. Below we look at two major competitors you may find interesting to watch and trade:
Exxon Mobil (NYSE: XOM)
Exxon Mobil is an American multinational energy corporation formed by the merger of two giants, Exxon and Mobil, in 1999. It is an integrated company involved in all aspects of oil and gas production from exploration, production, refining and sales to the general public through its chain of gas stations.
The company has a market capitalisation of $189 billion and is one of the most valuable publicly traded companies in the world. The current stock price is $44.94, down from a 52-week high of $78.50. The company was severely impacted by the decreased global demand for oil caused by the coronavirus pandemic.
Pioneer Natural Resources (NYSE: PXD)
Pioneer Natural Resources is an American hydrocarbon exploration company focused on shale gas deposits in the southwestern United States. It is the largest landholder in the vast Permian Basin and has concentrated significant resources in acquiring other shale gas deposits.
The company was formed in 1997 with the merger of Parker & Parsley Petroleum and Mesa Inc. It has a market capitalisation of $13 billion and is typically included as one of the top 350 most valuable publicly traded companies. The current share price is $83.15 down from a 52-week high of $159.01.
Apache share price forecast: APA – buy or sell?
In the short-term, oil and gas companies are expected to remain extremely volatile. It does seem that the Apache stock forecast 2020 is stronger than the industry as a whole and that there is some upside. In the current economic climate and in anticipation of APA stock news later this week, Apache is a hold but not a solid buy.
According to CNN Business’s 12-month forecasts for Apache Corporation, 27 analysts set a medium target of 10.00, with a high estimate of 24.00 and a low estimate of 4.00. The medium estimate represents a 17.01 per cent decrease from the last price of 12.05 (as of May 5, 2020)
There is the potential for strong gains if the company reports stronger than anticipated earnings performance on May 7 when it releases financial results for the first quarter of 2020. It should be noted that the majority of analysts expect negative earnings per share and a stronger performance would mean a smaller negative growth of earnings than expected, although there is still no potential profit possible.
That being said, the current financial crisis will cause many bankruptcies and significantly disrupt the industry which will create longer-term opportunities for the companies which are strong enough to survive the downturn.
Apache Corporation is considered strong enough to withstand a significant downturn. Therefore, investors who can withstand the short to medium-term volatility could find a lot of value at the current APA price and consider it a buy. Traders who keep a keen eye on price fluctuations will be able to capitalise on multiple up and down rallies in the short term and will have good chances to profit through CFDs at Capital.com.