Apache Corporation (NYSE: APA) is trading lower after beating earnings estimates. The company’s adjusted earnings were $2.94 EPS versus Thomson Reuters estimates of $2.87 EPS. After beating earnings and with the problems in north African operations, it would have seemed that the bar was being set low. A gain of 75% in earnings sounds great on the surface. So why is the stock lower?
Apache’s proven reserves grew about 1% in 2011 and it replaced 133% of its production. These seem to be not good enough for a $40 billion exploration and production giant. A cape-ex plan of $9.5 billion in 2012 also seems a bit high when you consider production growth of 7% to 13%.
Apache is down 1.4% at $106.14 and the 52-week trading range is $73.04 to $134.13. The good news is that at about ten-times earnings it should not fall apart too much. Still, it looks as though investors still want more for less… more output and reserves with lower spending.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
