Market Overview

Atlantic Equities Upgrades Apache To Overweight Amid Alpine High Discovery


Atlantic Equities thinks Apache Corporation (NYSE: APA) stands to gain from a fresh shale play citing high profile areas like Marcellus and SCOOP/STACK in Oklahoma. The brokerage pointed out that the company leased more than 300,000 acres at a cheap cost of $1,300 per acre over a two-year period.

Analyst Barry MacCarthy said most of them were pleasantly surprised by the new policy and that the Permian Basin's potentials to become a crucial player in the shale segment. The analyst has upgraded shares from Neutral to Overweight and boosted the target price from $41 to $70.

In a note, the brokerage said, "Apache has unveiled a "world class resource play", the Alpine High, in the Texas Permian Basin. It has a commanding 307,000 net acres, at a very modest $1,300/acre leasing cost in the southwest Permian, an area previously ignored by the industry. Activity is focused on the Woodford/ Barnett intervals in which natural gas (60%) and NGLs (28%) dominate production."

MacCarthy also expects upside potential from other sources, pointing out that Alpine High's value could get a boost from longer horizontal well sections and closer well spacing. He thinks that oil-prone areas indicated solid potentials, which have yet to be added into the company's resource projections.

During the recent investor day, Apache indicated its pre-tax return of 30 – 200 percent based on a "net value of $2 - $15 million per well in a $40" per barrel of oil and "$2.5 per MMBtu gas price environment."

Latest Ratings for APA

Jan 2021BarclaysUpgradesEqual-WeightOverweight
Jan 2021Truist SecuritiesUpgradesHoldBuy
Nov 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for APA
View the Latest Analyst Ratings


Related Articles (APA)

View Comments and Join the Discussion!

Posted-In: Atlantic EquitiesAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at