Nov 25 The recent share-price decline of energy
exploration outfit Apache Corp, hurt in part by a
deterioration in oil and natural gas prices, has pushed the
stock into inexpensive territory, business weekly Barron's said
Shares of Apache are down to $77.14, from a high of $111.57
Aside from lower energy prices, which have pressured
revenues, the company disappointed the market with a one-time
charge of $539 million in the third quarter for a write-down in
the value of exploration property in Canada, Barron's said.
The stock is down about 6 percent since the latest quarterly
results were released.
"Apache seems cheap relative to its history and peers,"
Barron's said, adding that the company's earnings per share have
risen an average of 23 percent a year since 2002.
Apache is trading at 7.65 times consensus analysts' earnings
estimates for next year, versus a historic median of 10 times,
and the stock is trading at book value, versus a median of two
times book, the newspaper said.
"As for energy prices, they have a funny way of going up as
well as down. A further deterioration could hurt Apache
short-term, but it's a good bet oil and gas will eventually turn
up, and so will Apache shares," Barron's said.