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Apache

Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).

APA Corp

APPIA RARE EARTHS URANIN by APPIA RARE EARTHS & URANIUM CORP.

Appia Rare Earths & Uranium Corp

STONEBRIDGE ACQUISITION CORP UNIT 1 CL A & 1/2 WT EXP

APA GROUP STAPLED SEC by APA Group Stapled Security

APA Group

Artisan Partners Asset Management Inc. Class A Common Stock

Artisan Partners Asset Management Inc

APA ORD

<ul>
<li>In 2016, Apache announced a major oil and natural gas discovery in the Alpine High region in Texas and promised massive returns to investors.</li>
<li>Apache drilled numerous wells at Alpine High but failed to disclose that many produced no oil or gas, with zero production.</li>
<li>In September 2016, Apache reported a well, producing 281 barrels per day, but by November, it had dropped to zero and stayed that way for five months.</li>
<li>In early 2020, when the site&#8217;s unviability was revealed, Apache was forced to take a $3 billion write-down and slash its dividend by 90%. Its stock, once $69 per share, dropped 93% by March 2020.</li>
<li>In 2021, investors sued Apache for hiding Alpine High&#8217;s poor performance, including zero output and sharp declines from several wells.</li>
<li>Apache has agreed to a $65 million settlement with shareholders to resolve the lawsuit. Affected investors can now <a href="https://11thestate.com/cases/apache-corp-investor-settlement">file a claim</a> to receive their payouts.</li>
</ul>
<h3 class="wp-block-heading has-medium-font-size">Overview</h3>
In 2014, APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) acquired nearly 300,000 acres in West Texas, branding it "Alpine High" and promoting it as a major oil and gas discovery with promises of huge profits. Despite knowing the land was economically unviable, senior management misrepresented information regarding the actual oil production of the site, and delayed regulatory documents. When the truth emerged, Apache&#8217;s stock plummeted 93%, wiping out $24 billion in market value. After that, investors filed a lawsuit against the company, and Apache recently agreed to settle, paying $65 million to damaged shareholders.
<h3 class="wp-block-heading has-medium-font-size">Alpine High: From "Oilmen's Graveyard" to "World-Class Discovery"</h3>
In 2014, Apache shifted focus to North American shale oil and appointed Steven Keenan as head geologist.&nbsp;
Since the 1950s, competitors had drilled the area, later called &#8220;Alpine High,&#8221; with no success, labelling it as &#8220;where oilmen go to die.&#8221; Despite conducting internal studies that also suggested the site's economic unviability, Apache issued a press release in 2016, touting Alpine High as a major oil discovery in Texas.
John J. Christmann, the company's CEO at the time, hailed Alpine High as "an immense resource that we believe will deliver significant value for our shareholders for many years."&nbsp;
Christmann touted the discovery's "large inventory of repeatable, high-value drilling opportunities" and "oil-prone locations," referring to it as a "world-class resource play" expected to yield large amounts of natural gas, natural gas liquids, and oil.
Given the site's history and previous dismissals by competitors, some market analysts and investors remained sceptical. Still, Christmann reassured them that the potential of Alpine High was unlocked by Apache's lead geologist and his team&#8217;s expertise, allowing them to spot opportunities others had missed.
Upon the discovery of the site, Apache <a href="https://money.cnn.com/2016/09/08/investing/apache-huge-oil-discovery/index.html">revealed</a> that the site could be worth over $8 billion. Commenting on the potential of Alpine, Apache's CEO John Christmann <a href="https://www.forbes.com/sites/christopherhelman/2016/09/28/apache-ceo-alpine-high-discovery-shows-how-to-survive-and-thrive-amid-the-oil-bust/">said</a>:
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<cite>"Alpine High will be very difficult to compete with on an economic basis."</cite></blockquote>
Following positive news and the CEO&#8217;s comments about Alpine High&#8217;s potential, Apache&#8217;s stock price rose by 61% since the beginning of 2016, reaching its highest point in over a year.
<h3 class="wp-block-heading has-medium-font-size">Court Findings: The Truth Begins To Unravel</h3>
The truth started to surface by mid-October 2019, following the presentation of Project Neptune&#8217;s findings to CEO Christmann and other executives.&nbsp;
On February 26, 2020, Apache announced a $3 billion write-down for Alpine High, wiping out its profits from the previous two years. The company also slashed its dividend by 90%.&nbsp;
Major media outlets highlighted the $3 billion write-down and halt of exploration at Alpine High, noting this was "in stark contrast" to the CEO's statements over the previous three years defending the play's prospects.&nbsp;
Bloomberg's February 27, 2020 <a href="https://www.bloomberg.com/news/articles/2020-02-26/apache-slashes-shale-budget-after-3-billion-alpine-high-charge">article</a>, titled "Apache Calls It Quits on Alpine High After $3 Billion Write Down" reported that Apache abandoned the disappointing shale discovery.
In the fourth-quarter earnings webcast, CEO Christmann recognized that 2019 posed significant challenges, with Alpine High identified as the primary issue. He indicated that "further testing is not warranted at this time" and confirmed that Apache "dropped the remainder of our drilling rigs in the fourth quarter and chose to defer some previously planned completions."&nbsp;
The controversy had a severe effect on investors, as seen by the stock's collapse of 93%.&nbsp;
After these events, investors sued Apache, claiming the company misled them about Alpine High&#8217;s poor performance and concealed key production information.
<h3 class="wp-block-heading has-medium-font-size">Resolving The Case</h3>
To resolve the lawsuit from investors, Apache Corporation has agreed to a cash settlement of up to $65 million. If you invested in Apache, you may be eligible to <a href="https://11thestate.com/cases/apache-corp-investor-settlement">claim a portion</a> of this settlement to recover your losses.
Following the fallout, Apache ultimately abandoned the Alpine High project. Since then, the company&#8217;s stock price has rebounded, climbing from a low of $4.46 in March 2020 to about $25 today. There were also leadership changes, including the exit of Steve Keenan, the senior vice president of worldwide exploration. Apache has since shifted its focus to the Suriname project in South America and other ventures in Egypt, which analysts see as key opportunities to rebuild investor confidence and improve stock performance. However, the shadow of Alpine High still looms over the company&#8217;s operations.

Markets

General

Inside Apache's Alpine High Fiasco: Deception, Fraud, And A $3 Billion Write-Down

Crude oil prices plummeted over 6% on Monday, approaching levels not seen since early October, as investors processed news of targeted <a href="https://www.benzinga.com/news/24/10/41567809/oil-etfs-plunge-premarket-after-israels-strikes-on-iran">Israeli airstrikes in Iran</a>.
U.S. energy stocks followed suit during premarket trading in New York, with sector ETFs posting sharp losses at the start of the week. 
Contracts on West Texas Intermediate (WTI) light crude, as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), fell over 6% to around $67 per barrel on Monday morning, marking what could be the worst one-day drop since July 2022.
The sell-off followed Israeli airstrikes over the weekend that targeted military facilities in Iran but spared the country's oil infrastructure.
According to the Israel Defense Forces, the strikes were "targeted and precise," focusing on Iranian missile production and air defense installations. 
This measured response likely averted a deeper crisis in the oil market, as analysts warned that a broader assault on Iran's energy sector could have risked up to 1.7 million barrels per day (bpd) of Iranian crude exports and led to further regional destabilization. 
U.S. President Joe Biden had cautioned Israel against actions that would directly impact Iran's oil output, warning that such moves could prompt Tehran to retaliate by targeting oil shipping routes in the Middle East.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png" alt="" class="wp-image-617043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Analysts Expect Oil Prices To Remain Under Pressure</h3>
Goldman Sachs analysts had previously estimated that a sustained 1 million bpd disruption to Iranian oil supply could have pushed Brent prices up by $10–$20 per barrel. 
With no immediate threat to Iran's oil exports, the bank's forecast for Brent reaching the mid-$80s by late 2025 now appears overly optimistic compared to the consensus view.
The restrained nature of Israel's actions has led some analysts to predict that oil prices will remain subdued, especially in light of broader market dynamics. 
Warren Patterson, head of commodity strategy at ING Group, highlighted that Israel's focused response leaves "the door open for de-escalation," which seems to be reflected in Monday&#8217;s price action.
"If we do see some de-escalation, it would allow fundamentals to dictate price direction once again," Patterson explained, adding that a projected market surplus in 2025 &#8220;would mean that oil prices are&nbsp;likely to remain under pressure.&#8221;
Ole Hansen, head of commodity strategy at Saxo Bank, indicated that crude prices have now retraced most of the gains made in early October, which were fueled by Chinese economic stimulus and concerns over potential disruptions to Iran's supply. Hansen pointed out that "sluggish demand" and the impending reintroduction of OPEC+ barrels could further weigh on oil prices.
<h3 class="wp-block-heading">China's Declining Demand, OPEC+ Production Decisions Add To Bearish Sentiment</h3>
On the demand side, Chinese consumption—accounting for roughly 15% of global oil demand—has been trending downward since May 2024
According to Pascal Devaux, an economist at BNP Paribas, this decline is tied not only to China's economic slowdown but also to structural changes within its energy sector. "Around 45% of new car registrations in China are for electric vehicles, either battery-powered or hybrid," Devaux said, underscoring the impact of the country's low-carbon transition on oil demand.
Capital Economics forecasts that if OPEC+ follows through on its plan to unwind voluntary production cuts initiated in October, an increase in oil supply combined with weak demand growth could drive prices lower throughout the remainder of 2024 and into 2025.
<h3 class="wp-block-heading">US Energy Stocks See Sharp Losses</h3>
Sector ETFs posted notable declines in early trading:
<ul>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks large-cap U.S. energy companies, was down 2.3% at the start of Monday's session. APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), and Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>) all registered losses between 3% and 4%.</li>
</ul>
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), a broader measure of exploration and production stocks, slid 2.8%. Kosmos Energy Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Vital Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTLE#NYSE">VTLE</a>) are both down 4%.</li>
</ul>
<ul>
<li>VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropped 1.7%. Companies like ProPetro Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PUMP#NYSE">PUMP</a>), Liberty Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LBRT#NYSE">LBRT</a>), and Noble Corporation plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>) were hit particularly hard, each falling by about 4%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41571526/exxon-shell-warren-buffett-backed-occidental-petroleum-and-other-oil-stocks-tumble-in-premarket-afte">Exxon, Shell, Warren Buffett-Backed Occidental Petroleum And Other Oil Stocks Tumble In Premarket After Israel&#8217;s Strikes On Iran</a></li>
</ul>
Image: Shutterstock

Analyst Color

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Sector ETFs

Emerging Markets

Specialty ETFs

Commodities

Global

Econ #s

ETFs

FANG

LBRT

PUMP

VTLE

Crude Oil Faces Steepest One-Day Drop In Over Two Years, Energy Stocks Plunge: Prices 'Are Likely To Remain Under Pressure,' Analyst Says

During the last three months, 22 analysts shared their evaluations of APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), revealing diverse outlooks from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">12</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for APA, presenting an average target of $36.59, a high estimate of $52.00, and a low estimate of $26.00. This current average has decreased by 8.73% from the previous average price target of $40.09. 
<img src="https://www.benzinga.com/files/images/story/2024/1729256411_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive APA. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Positive</td>
<td>$48.00</td>
<td>$52.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$28.00</td>
<td>$29.00</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Perform</td>
<td>$27.00</td>
<td>$30.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$36.00</td>
<td>$34.00</td>
</tr>
<tr>
<td>Neil Mehta</td>
<td>Goldman Sachs</td>
<td>Lowers</td>
<td>Sell</td>
<td>$26.00</td>
<td>$30.00</td>
</tr>
<tr>
<td>Betty Jiang</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$30.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$47.00</td>
<td>$49.00</td>
</tr>
<tr>
<td>Stephen Richardson</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>In-Line</td>
<td>$33.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$34.00</td>
<td>$46.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$29.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$41.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>William Janela</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Underperform</td>
<td>$28.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Arun Jayaram</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$27.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>Stephen Richardson</td>
<td>Evercore ISI Group</td>
<td>Maintains</td>
<td>In-Line</td>
<td>$39.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Betty Jiang</td>
<td>Barclays</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$35.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$41.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Positive</td>
<td>$52.00</td>
<td>$57.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$29.00</td>
<td>$34.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$49.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$35.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$46.00</td>
<td>$45.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$45.00</td>
<td>$52.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to APA. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of APA compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of APA's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of APA's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/APA/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on APA analyst ratings.</a>
<h2>Discovering APA: A Closer Look</h2>
Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
<h3>APA's Economic Impact: An Analysis</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining APA's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 41.59% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Net Margin: APA's net margin is impressive, surpassing industry averages. With a net margin of 21.27%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): APA's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.47% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): APA's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.08% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a high debt-to-equity ratio of 1.26, APA faces challenges in effectively managing its debt levels, indicating potential financial strain.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Key Takeaways From APA Analyst Ratings

Susquehanna analyst Biju Perincheril maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Positive and lowers the price target from $52 to $48.

News

Price Target

Susquehanna Maintains Positive on APA, Lowers Price Target to $48

WIIM

APA Corp shares are trading lower after Piper Sandler lowered its price target on the stock from $29 to $28.

Oil prices took a sharp dive on Tuesday, tumbling over 5% in morning trading in New York, as geopolitical tensions in the Middle East slightly eased after Israeli Prime Minister Benjamin Netanyahu reportedly pledged that Iran's crude oil infrastructure would be spared from <a href="https://www.benzinga.com/news/24/10/41321699/oil-prices-drop-after-netanyahu-says-israel-will-attack-military-not-oil-or-nuclear-targets-in-iran">any potential retaliatory strikes. </a>
West Texas Intermediate (WTI) crude, the U.S. benchmark, tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), nosedived to $70 per barrel, down more than 5% as of 10 a.m. ET. This marks the steepest one-day decline in over a year.
The selloff followed a Monday report from The Washington Post that said that Netanyahu assured the Biden administration that Israel would avoid targeting Iranian oil and nuclear facilities in any retaliatory military actions.
The assurance suggested a narrower scope of potential conflict, reducing fears of widespread supply shocks in the global oil market.
Market analysts had previously warned that an Israeli strike on Iran&#8217;s oil infrastructure could send crude prices skyrocketing by $20 per barrel, highlighting concerns that Tehran would retaliate by attacking oil installations throughout the Gulf region, potentially triggering a broader energy crisis.
<h3 class="wp-block-heading">Crude Suffers Worst Drop In Over 1 Year As Middle East Supply Fears Recede</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="469" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png" alt="" class="wp-image-596308" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-300x137.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-768x351.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1536x703.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118.png 1884w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101524&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure>
<h3 class="wp-block-heading">Energy Sector Tanks: US Oil Giants Lead Declines</h3>
The immediate reaction in the markets was swift: U.S. energy stocks plunged, while airlines and cruise lines — typically sensitive to fuel prices — enjoyed a sharp relief rally.
The energy sector was one of the biggest losers on the day. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major U.S. energy companies, slid 2.8%, setting up for its worst day since late April. 
АРА Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) were the worst performers within the XLE ETF, with declines of about 4%.
Companies involved in upstream exploration and production were hit even harder, with the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) falling 3.1%. Talos Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>), Kosmos Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Crescent Energy Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRGY#NYSE">CRGY</a>) each tumbled by over 4%. 
Downstream oil service providers also struggled, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropping 3.6%. Major oilfield services companies like Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) both fell about 3%, while Transocean Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>) underperformed, down 5%. 
<h3 class="wp-block-heading">Airlines And Cruise Lines Rally: Lower Fuel Costs, Strong Earnings Expectations Lift Sentiment</h3>
While energy stocks suffered, sectors reliant on cheaper fuel prices thrived. Airlines and cruise lines, in particular, were among the best performers within the S&amp;P 500 as the prospect of lower oil prices offered some relief.
Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) surged 4.3%, while Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) jumped 5.3%. 
Goldman Sachs recently raised its price target on Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) from $195 to $220, anticipating strong earnings momentum. Similarly, NCLH saw its price target lifted from $22 to $24.
In the airline space, American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) rallied 3.5%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) gained 1.2%, reaching its highest level since February 2020, and Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) rose 1.3%.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41331839/financial-sector-hits-record-highs-as-goldman-sachs-bank-of-america-citi-beat-q3-ea">Financial Sector Hits Record Highs As Goldman Sachs, Bank of America, Citi Beat Q3 Earnings Expectations</a></li>
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Photo via Shutterstock.

Large Cap

Mid Cap

Politics

Movers

CRGY

NCLH

TALO

Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities: Energy Stocks Sink, Airlines, Cruise Lines Rally

Piper Sandler analyst Mark Lear maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Neutral and lowers the price target from $29 to $28.

Piper Sandler Maintains Neutral on APA, Lowers Price Target to $28

EONR

EQNR

INDO

MTDR

SHEL

TRGP

Shares of energy stocks are trading lower as oil prices fall after Israel reportedly indicated it could target military sites in Iran but not oil or nuclear targets.

Scotiabank analyst Paul Cheng maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Sector Perform and lowers the price target from $30 to $27.

Scotiabank Maintains Sector Perform on APA, Lowers Price Target to $27

Production update
APA curtailed approximately 103 MMcf/d of U.S. natural gas production in the third quarter in response to weak or negative Waha hub prices. APA also curtailed an estimated 10,000 barrels per day of natural gas liquids during the quarter, which were mostly associated with the voluntary gas curtailments. Previous third quarter guidance issued in July contemplated curtailments of ~90 MMcf/d of natural gas and ~7,500 barrels per day of NGLs.

Guidance

APA Curtailed Approximately 103 MMcf/d Of U.S. Natural Gas Production In Q3 In Response To Weak Or Negative Waha Hub Prices; Also Curtailed An Estimated 10,000 Barrels Per Day Of Natural Gas Liquids During The Quarter, Which Were Mostly Associated With The Voluntary Gas Curtailments

Truist Securities analyst Neal Dingmann maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Buy and raises the price target from $34 to $36.

Truist Securities Maintains Buy on APA, Raises Price Target to $36

Goldman Sachs analyst Neil Mehta maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Sell and lowers the price target from $30 to $26.

Goldman Sachs Maintains Sell on APA, Lowers Price Target to $26

Shares of U.S. energy giants surged this week, marking the strongest performance in two years, as fears of a wider conflict in the Middle East between Iran and Israel drove oil prices <a href="https://www.benzinga.com/government/24/10/41172781/oil-prices-rally-biden-confirms-us-discussions-with-israel-about-striking-iran-facilities">to $75 per barrel. </a>
The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks 31 major U.S. energy companies, including giants like Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), recorded a remarkable 6.4% gain this week.
Investors poured nearly $300 million into the XLE ETF this week, the highest inflow since late July, according to Tradingview data.
Exxon Mobil, the largest U.S. oil company, reached a record high of $125 per share on Friday. The stock posted its sixth consecutive day of gains, ending the week up over 7%, marking its best performance since October 2022.
Oil prices continued their rally, with West Texas Intermediate (WTI) crude recording its fourth straight day of gains, hitting levels last seen in late August. The geopolitical tensions between Israel and Iran have sparked concerns over global oil supply disruptions.
<h3 class="wp-block-heading">Rising Middle East Tensions, Biden Calls For Measured Israeli Response</h3>
Israel promised a strong retaliation after Iran launched more than 180 ballistic missiles on Tuesday. While Israel&#8217;s air defense systems successfully intercepted most of the missiles, the attack further intensified the already heightened regional instability.
On Friday, President Joe Biden addressed the escalating crisis during a rare appearance at the White House daily press briefing. He mentioned Israel&#8217;s right to defend itself but said the country had not yet decided how it would respond to Iran&#8217;s ballistic missile strike.
Biden said he advised Israel against further escalating the conflict, suggesting that Israel might consider alternatives to targeting oil fields in its retaliation.
In his first public appearance since the attack, Iran's Supreme Leader Ayatollah Ali Khamenei defended the strike as &#8220;legitimate punishment&#8221; for what he called Israeli crimes and urged greater resistance against Israel in the region, Reuters reported.
Iran's deputy commander of the Islamic Revolutionary Guard Corps also issued a stark warning, stating that Iran could target Israeli oil refineries and gas fields if Israel chooses to strike Iranian territory.
<h3 class="wp-block-heading">This Week&#8217;s Top 10 Performing US Energy Stocks</h3>
U.S. energy stocks posted sharp gains, with the top performers this week including:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Price Chg. % (5D)</td>
<td>Market Cap</td>
</tr>
<tr>
<td>Diamondback Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>)</td>
<td>13.62%</td>
<td>$57.14B</td>
</tr>
<tr>
<td>APA Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APA#NYSE">APA</a>)</td>
<td>9.36%</td>
<td>$9.92B</td>
</tr>
<tr>
<td>The Williams Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>)</td>
<td>9.04%</td>
<td>$60.02B</td>
</tr>
<tr>
<td>Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>)</td>
<td>8.44%</td>
<td>$16.06B</td>
</tr>
<tr>
<td>Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td>
<td>8.35%</td>
<td>$51.71B</td>
</tr>
<tr>
<td>Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>)</td>
<td>8.25%</td>
<td>$27.38B</td>
</tr>
<tr>
<td>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>)</td>
<td>8.19%</td>
<td>$131.57B</td>
</tr>
<tr>
<td>EOG Resources, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td>
<td>8.05%</td>
<td>$75.23B</td>
</tr>
<tr>
<td>Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>)</td>
<td>7.94%</td>
<td>$26.33B</td>
</tr>
<tr>
<td>Kinder Morgan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>)</td>
<td>7.82%</td>
<td>$52.15B</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
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Photo: Shutterstock

Macro Economic Events

Economics

US Energy Stocks Notch Biggest Weekly Gains In 2 Years, Exxon Hits Record Highs As Crude Surges To $75 On Israel-Iran Jitters

Barclays analyst Betty Jiang maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Equal-Weight and lowers the price target from $35 to $30.

Barclays Maintains Equal-Weight on APA, Lowers Price Target to $30

TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) shares are trading higher premarket on Wednesday. The company inked a mid-term LNG supply contract with Santos to supply <a target="_blank" href="https://www.santos.com/wp-content/uploads/2024/10/Santos-signs-mid-term-LNG-supply-contract.pdf" rel="noreferrer noopener">20 LNG</a> cargoes, or up to 0.5 million tonnes annually, over three years plus one quarter.
Starting in the fourth quarter of 2025, the LNG will be sourced from Santos&#8217; global portfolio and delivered ex-ship.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said, &#8221;This oil indexed contract, along with the recently executed long-term LNG Sales and Purchase Agreement with Hokkaido Gas in Japan, and the mid-term contract with Glencore, demonstrates Santos' strong LNG portfolio position and customer relationships in the region.&#8221;
&#8220;Our portfolio is nicely balanced over the short to medium term with around eighty percent of volumes indexed to oil price and around twenty percent exposed to spot pricing.&#8221;
&#8221;There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions. Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region.&#8221;
Yesterday, TotalEnergies, along with APA Corporation and Staatsolie Maatschappij Suriname, disclosed a Final Investment Decision (FID) for the first oil development in&nbsp;<a target="_blank" href="https://benzinga.com/markets/equities/24/10/41125582/why-is-apa-corp-stock-seeing-blue-skies-on-tuesday" rel="noreferrer noopener">Block 58, located offshore Suriname</a>.
The total investment is estimated at $10.5 billion, with the first oil expected in 2028.
Investors can gain exposure to the stock via&nbsp;Advisor Managed Portfolios Miller Value Partners Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MVPA#NYSE">MVPA</a>) and&nbsp;Octane All-Cap Value Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCTA#NASDAQ">OCTA</a>).
Price Action: TTE shares are up 2.60% at $67.39 premarket at the last check Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/09/41067021/totalenergies-inks-another-eagle-ford-basin-deal-exec-says-stake-purchase-strengthens-upstream-g" target="_blank" rel="noreferrer noopener">TotalEnergies Inks Another Eagle Ford Basin Deal, Exec Says Stake Purchase &#8216;Strengthens Upstream Gas Position&#8217;</a></li>
</ul>

Contracts

MVPA

OCTA

OILT

TotalEnergies Inks LNG Supply Contract With Santos: Details

Ratings for APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) were provided by 21 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">13</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">7</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated APA and provided 12-month price targets. The average target is $37.95, accompanied by a high estimate of $52.00 and a low estimate of $27.00. Experiencing a 8.71% decline, the current average is now lower than the previous average price target of $41.57. 
<img src="https://www.benzinga.com/files/images/story/2024/1727816444_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive APA. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$47.00</td>
<td>$49.00</td>
</tr>
<tr>
<td>Stephen Richardson</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>In-Line</td>
<td>$33.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$34.00</td>
<td>$46.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$29.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$41.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>William Janela</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Underperform</td>
<td>$28.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Arun Jayaram</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$27.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>Stephen Richardson</td>
<td>Evercore ISI Group</td>
<td>Maintains</td>
<td>In-Line</td>
<td>$39.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Betty Jiang</td>
<td>Barclays</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$35.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$41.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Positive</td>
<td>$52.00</td>
<td>$57.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$29.00</td>
<td>$34.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$49.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$35.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$46.00</td>
<td>$45.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$45.00</td>
<td>$52.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Neutral</td>
<td>$34.00</td>
<td>$33.00</td>
</tr>
<tr>
<td>Bob Brackett</td>
<td>Bernstein</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$30.00</td>
<td>$37.00</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Perform</td>
<td>$30.00</td>
<td>$37.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$52.00</td>
<td>$53.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$41.00</td>
<td>$41.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to APA. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of APA compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of APA's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into APA's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/APA/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on APA analyst ratings.</a>
<h2>All You Need to Know About APA</h2>
Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
<h3>Financial Insights: APA</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, APA showcased positive performance, achieving a revenue growth rate of 41.59% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 21.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): APA's ROE stands out, surpassing industry averages. With an impressive ROE of 13.47%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): APA's ROA stands out, surpassing industry averages. With an impressive ROA of 3.08%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: APA's debt-to-equity ratio stands notably higher than the industry average, reaching 1.26. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Peeling Back The Layers: Exploring APA Through Analyst Insights

Wells Fargo analyst Roger Read maintains APA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) with a Overweight and lowers the price target from $49 to $47.

Wells Fargo Maintains Overweight on APA, Lowers Price Target to $47

APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) shares are trading higher after the company announced a Final Investment Decision (FID) for the first oil development in<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/g41116965/apa-announces-final-investment-decision-for-first-oil-development-offshore-suriname" rel="noreferrer noopener"> Block 58, located offshore Suriname</a>.
In June 2024, APA, along with TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) and Staatsolie Maatschappij Suriname disclosed key advancements towards the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39187808/suriname-oil-boom-on-the-horizon-totalenergies-apa-near-fid-for-block-58" rel="noreferrer noopener">FID for developing offshore&nbsp;Block 58</a>.
TotalEnergies and APA operate Block 58, with each holding a 50% stake. Staatsolie, Suriname&#8217;s national oil company, has the option to join the development project with up to a 20% interest once the FID is made.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34579825/totalenergies-eyes-9b-oil-venture-in-block-58-offshore-suriname-production-to-begin-in-2028" rel="noreferrer noopener">TotalEnergies Eyes $9B Oil Venture In Block 58 Offshore Suriname, Production To Begin In 2028</a>
The total investment is estimated at $10.5 billion, with first oil expected in 2028.
The project, named GranMorgu, includes production from the Krabdagu and Sapakara oil discoveries and has confirmed gross estimated recoverable resources exceeding 750 million barrels of oil through appraisal drilling.
GranMorgu will utilize technology to minimize greenhouse gas emissions, featuring an all-electric FPSO configuration with zero routine flaring and complete reinjection of associated gas into reservoirs.
Alongside securing approval for the Phase-1 Central Area Field Development, the partnership has maintained the option for additional exploration in Block 58.
This will enable the companies to thoroughly investigate the substantial untapped potential of the block within the established trend, as well as explore untested areas.
Investors can gain exposure to APA via&nbsp;Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) and Octane All-Cap Value Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCTA#NASDAQ">OCTA</a>).
Price Action: APA shares are up 4.80% at $25.64 at the last check Tuesday.
Photo via Shutterstock
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Why Is APA Corp Stock Seeing Blue Skies On Tuesday?

APA shares are trading higher after the company announced a final investment decision for the first oil development in Block 58, located offshore Suriname.

50-50 joint venture with TotalEnergies&#39; subsidiary (Block 58 operator) for 220,000 barrels of oil per day Floating Production Storage and Offloading (FPSO) unit
<ul>
<li>First oil production from the Krabdagu and Sapakara fields anticipated in 2028</li>
<li>Project to feature new technologies to minimize greenhouse gas emissions
	&nbsp;</li>
</ul>
PARAMARIBO, Suriname, Oct. 01, 2024 (GLOBE NEWSWIRE) -- APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) announced today that its subsidiary has reached a positive final investment decision (FID) for the first oil development in Block 58, located offshore Suriname. The project has been named GranMorgu, which is derived from a local language and means both &quot;new dawn&quot; and &quot;goliath grouper.&quot;
GranMorgu will include production from the Krabdagu and Sapakara oil discoveries, where appraisal drilling confirmed gross estimated&nbsp;recoverableresources of more than&nbsp;750 million barrels of oil. Total investment is estimated at $10.5 billion, with first oil in 2028. TotalEnergies EP Suriname B.V. is the operator of Block 58, with a 50% interest, alongside APA Suriname 58 Corporation LDC (50%). Staatsolie, Suriname&#39;s national oil company, has the option to enter the development project with up to 20% interest upon FID.
At meetings held in Paramaribo, John J. Christmann IV, CEO of APA, met with His Excellency Chandrikapersad Santokhi, President of the Republic of Suriname, and Annand Jagesar, CEO of Staatsolie, to review the development plans for Block 58, as well as with Patrick Pouyann&eacute;, Chairman and CEO of TotalEnergies.

APA Announces Final Investment Decision For First Oil Development Offshore Suriname; Total Investment Is Estimated At $10.5B, With First Oil In 2028

Generative AI's Chartreuse Adoption Moment

Oakmark U.S. Large Value Strategy  Q3 2024 Commentary

The oil and gas market presents a solid investment opportunity due to geopolitical supply constraints, rising global demand, and favorable long-term growth projections despite the shift toward cleaner fuels. Therefore, it could be wise to consider buying top-rated oil and gas stocks such as APA Corporation (APA), Adams Resources & Energy, Inc. (AE), and VAALCO Energy, Inc. (EGY), which are still trading at a discount in 2024. Read on... Geopolitical factors, including unrest in Libya and production cuts from Iraq and Russia, are tightening oil supply, potentially increasing prices and profit margins for oil companies. Although the industry is shifting toward cleaner fuels, oil remains a vital energy source, and varying forecasts on this transition create near-term investment opportunities.
Amid this backdrop, it could be wise to consider buying strong oil and gas stocks such as APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>), Adams Resources &amp; Energy, Inc. (<a href="https://stocknews.com/stock/AE/">AE</a>), and VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>), which remain undervalued in 2024.
Despite economic shifts, OPEC projects global oil demand to <a href="https://www.reuters.com/markets/commodities/opec-cuts-2024-2025-global-oil-demand-growth-view-again-2024-10-14/">rise by 1.93 million barrels per day (bpd) in 2024</a>, indicating steady consumption. The report also highlights potential production increases in the fourth quarter, with demand anticipated at 43.7 million bpd. Notably, stimulus measures in China are expected to further boost oil demand during this period.
Additionally, according to Statista, primary energy consumption is projected to reach approximately <a href="https://www.statista.com/statistics/282801/primary-energy-demand-by-source-world/">364 million barrels of oil equivalent per day by 2045</a>. Oil and gas are expected to lead this growth, contributing 110 and 90 million barrels of oil equivalent per day, respectively. Furthermore, advancements in exploration, and production, enhance market prospects, fostering an optimistic outlook for the industry.
Considering these favorable trends and strong demand, let's now explore the fundamentals of the three featured <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> stocks, starting with number three.
Stock #3: APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>)
APA is an independent energy company that explores, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and the North Sea. The company also conducts exploration and appraisal activities in Suriname and holds interests in projects located internationally.
On October 1, 2024, APA announced a final investment decision for the first oil development offshore Suriname, a joint venture with TotalEnergies. The project, expected to start production in 2028, aims to produce 220,000 barrels of oil per day using technologies to minimize greenhouse gas emissions.
In terms of forward non-GAAP P/E, APA's 6.31x is 47.8% lower than the 12.09x industry average. Its 1.85x forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp">EV/Sales</a> is 5.6% lower than the 1.96x industry average. Similarly, its 1x forward Price/Sales is 32.9% lower than the 1.50x industry average.
In the second quarter, which ended on June 30, APA's total revenue increased 41.6% year-over-year to $2.54 billion. The company's adjusted earnings were $434 million, or $1.17 per share, up 64.4% and 37.6% from the prior year's quarter, respectively. Additionally, its adjusted EBITDAX increased 29.5% year-over-year to $1.58 billion.
For the quarter ending December 31, 2024, APA's EPS is expected to increase 20.4% year-over-year to $2.28 billion. Its revenue for the quarter ending March 31, 2025, is expected to increase 32.9% year-over-year to $1.04.  APA's stock has gained 1.5% over the past month to close the last trading session at $24.80.
APA's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this positive outlook. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Within the <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> industry, it is ranked #25 out of 77 stocks. It has a B grade for Value and Quality. To see the other ratings of APA for Growth, Momentum, Stability, and Sentiment, <a href="https://stocknews.com/stock/APA/">click here</a>.
Stock #2: Adams Resources &amp; Energy, Inc. (<a href="https://stocknews.com/stock/AE/">AE</a>) 
AE primarily engages in the marketing, transportation, terminalling, and storage of crude oil and other related products in the United States. The company operates through four segments: Crude Oil Marketing, Transportation, Pipeline and Storage, and Logistics and Repurposing.
In terms of forward EV/EBITDA, AE's 3.31x is 44.6% lower than the 5.98x industry average. Its 0.02x forward Price/Sales is 98.3% lower than the 1.50x industry average. Moreover, its 0.03x forward EV/Sales is 98.7% lower than the 1.96x industry average.
AE's total revenue for the second quarter, which ended on June 30, 2024, increased by 15% year-over-year to $718.49 million. Its cash inflow from operating activities amounted to $8.32 million, compared to an outflow of $27.32 million in the prior-year quarter.
For the same period, the company's adjusted EBITDA stood at $4.20 million. Additionally, as of June 30, 2024, its cash and cash equivalents were $38.51 million, compared to $33.26 million as of December 31, 2023.
AE surpassed the Street revenue estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 10.2% to close the last trading session at $26.51.
AE's POWR Ratings reflect its solid fundamentals. It has an overall rating of B, equating to a Buy in our proprietary rating system.
It is ranked #10 in the same industry. It has a B grade for Value. <a href="https://stocknews.com/stock/AE/">Click here</a> to see the additional grades of AE for Growth, Momentum, Stability, Sentiment, and Quality.
Stock #1: VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>)
EGY is an independent energy company that engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada.
In terms of forward EV/Sales, EGY's 1.32x is 32.9% lower than the 1.96x industry average. Its 1.27x forward Price/Sales is 15.3% lower than the 1.50x industry average. In addition, its 7.14x forward non-GAAP P/E is 40.9% lower than the 12.09x industry average.
For the second quarter that ended on June 30, 2024, EGY's total net revenue increased 6.9% year-over-year to $116.78 million. Similarly, its income before income taxes grew 104.2% from the year-ago value to $37.45 million. Moreover, the company's net income came in at $28.15 million and $0.27 per share, up 316.9% and 350% year-over-year, respectively.
Analysts expect EGY's EPS and revenue for the quarter ended September 30, 2024, to increase 200% and 25.5% year-over-year to $0.18 and $145.89 million, respectively. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 37.9% to close the last trading session at $5.93.
EGY's POWR Ratings reflect its bright prospects. It has an overall rating of B, translating to a Buy in our proprietary rating system.
It has a B grade for Value, Sentiment, and Quality. Within the Energy - Oil &amp; Gas industry, it is ranked #6. To access EGY's additional grades for Growth, Momentum, and Stability, <a href="https://stocknews.com/stock/EGY/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
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<hr />
APA shares were trading at $24.90 per share on Thursday afternoon, up $0.10 (+0.40%). Year-to-date, APA has declined -28.93%, versus a 23.85% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/apa-ae-egy-3-oil-gas-stocks-that-are-still-undervalued-in/>3 Oil & Gas Stocks That Are Still Undervalued in 2024</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Oil & Gas Stocks That Are Still Undervalued in 2024

APA: Raised Callon Synergies, Margin-Accretive Divestment And Suriname FID Confirm Our Rating

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