APA Corp. (APA) Update - Jan 24

[dan_s]

APA is going to acquire Callon Petroleum (CPE) in an all-stock merger that is expected to close late in Q1 2024. I have not had time to build a proforma forecast model for APA. I have lowered my valuation of CPE from $66 to $45 per share, which is just the current TipRanks' price target for APA.

HOUSTON, Jan. 23, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain fourth-quarter 2023 financial and operational results. This information is intended only to provide additional information regarding current estimates management believes will affect results for the fourth-quarter 2023. It is provided to assist investors, analysts and others in formulating their own estimates, and is not intended to be a comprehensive presentation of all factors that will affect fourth-quarter 2023 results. Actual results and the impact of factors identified here may vary depending on the impact of other factors not identified here and are subject to finalization of the financial reporting process for fourth-quarter 2023.

See more at his link: https://finance.yahoo.com/news/apa-corporation-provides-fourth-quarter-211500547.html

Note that APA's realized U.S. oil price was $79/bbl in the quarter (not including cash settlements on their hedges). It is higher than the WTI oil price used in my forecast models of $75/bbl.