Investing in Apache (APA) simply for its fruits of great returns, smart management plays, innovation and creativity, and sticking by its philosophy of strong organic growth should be enough to convince any investor to jump on board. However, when a company this size can be typically seen as “small business, small returns” it is difficult to match it up to the giants of ConocoPhillips (COP), Anadarko (APC), Total (TOT), BP (BP), and especially Exxon Mobil (XOM).
But we must not be fooled by its stature. With a market cap of $33.63 billion, a P/E of 8, and a dividend yield of .80%, Apache is not a company to sneeze at. In fact, it I believe it is one to embrace. Oh, and did I mention that the company just discovered what is thought to be one of the world’s largest shale-gas discoveries? It may be chugging along behind the giants, but it is turning heads and making money for investors. Getting on board now for a very long term would be a wise move today.
Oil production in West Texas and the central U.S. will create most of the growth for Apache through year 2016, according to CEO Steve Farris. The company expects the Permian Basin in West Texas to grow by 13% per year and that the Central U.S. plays will grow by 24%. Farris stated “We’re now in a position to really move the needle in the United States. We have the inventory to do that and the acreage to do that.To continue reading, click here.