This Decision Sent Apache Corporation's Stock Slumping Nearly Double Digits in October
Apache Corporation (NYSE: APA) sold off 9.7% in October after updating investors on its future. That included the decision to outspend cash flow by as much as $1 billion this year, with another significant gap anticipated next year. That shortfall has investors concerned that Apache is a step behind rivals that intend on living within cash flow in 2018.
Apache told investors in mid-October that it was on pace to outspend cash flow by $1 billion this year, which is a significant departure for a company that believes it should live within cash flow. It also thought it would outspend cash flow by about $500 million in 2018, and that's assuming oil averages $55 a barrel. The company believes that this is the right decision because it needs to spend above what it's bringing in so it can complete the testing and begin development of its Alpine High play. In addition, it needed to invest money in building the infrastructure required to support that recent discovery.
Image source: Getty Images.
Source: Fool.com
APA Corporation Aktie
Die Community bevorzugt leicht APA Corporation mit mehr Buy- als Sell-Einschätzungen.
Für APA Corporation sieht die Community ein Kursziel von 46 €, was eine erhebliche Steigerung um über 50% gegenüber dem aktuellen Kurs von 26.21 € bedeutet.