NASDAQ · Energy

APA Corporation

APA · Oil & Gas E&P

$33.03

▼ -0.9 (-2.65%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 53.5%

Operating Margin 43.3%

Net Income Margin 19.2%

Fin. Health

F⤢

Years to Pay Off Debt 10.2 yrs

Working Capital vs Long-Term Debt -$4.5B

Working Capital -$202M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.81x

Cash Flow

C⤢

Free Cash Flow $8M

CapEx % of Net Income 122.4%

Owner Earnings $1.5B

Profitability

Gross Profit Margin 53.5%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 43.3%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 19.2%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 10.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$4.5B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$202M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $8M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 122.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.5B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About APA Corporation

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The company has oil and gas operations in the United States, Egypt, and North Sea. It also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

Market Data

Market Cap $11.7B

Enterprise Value $17.3B

P/E (TTM) 7.70

Dividend Yield 2.95%

Exchange NASDAQ

Key Margins

Gross Profit 53.5%

Operating Margin 43.3%

Net Margin 19.2%

Company Info

Sector Energy

Industry Oil & Gas E&P

Employees 1791

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering APA Corporation at $33.03.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $33.03, the stock trades at a 45% premium to its Graham Number of $22.76. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	53.5%▲	43.0%•	N/A
Operating Margin %	43.3%▲	32.1%•	N/A
Net Income %	19.2%▲	14.0%•	N/A
Diluted EPS	1.26▲	0.79•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$18.1B	$17.8B	N/A
Total Debt	$4.5B▼	$4.6B•	N/A
Working Capital	-$202M▲	-$450M•	N/A
Years to Pay Debt	10.17	16.45	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$8M▼	$218M•	N/A
Owner Earnings	$1.5B	$1.4B	N/A
CapEx % of Net Income	122.4%	211.5%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-41,494	-22,618
Tax Rate For Calcs	0	0
Normalized EBITDA	1,559,000	1,186,000
Total Unusual Items	-120,000	-70,000
Total Unusual Items Excluding Goodwill	-120,000	-70,000
Net Income From Continuing Operation Net Minority Interest	446,000	279,000
Reconciled Depreciation	553,000	566,000
Reconciled Cost Of Revenue	1,081,000	1,134,000
EBITDA	1,439,000	1,116,000
EBIT	886,000	550,000
Net Interest Income	-57,000	-58,000
Interest Expense	56,000	61,000
Interest Income	0	4,000
Normalized Income	524,506	326,382
Net Income From Continuing And Discontinued Operation	446,000	279,000
Total Expenses	1,320,000	1,351,000
Diluted Average Shares	354,000	355,000
Basic Average Shares	354,000	355,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	446,000	279,000
Net Income Common Stockholders	446,000	279,000
Net Income	446,000	279,000
Minority Interests	-97,000	-52,000
Net Income Including Noncontrolling Interests	543,000	331,000
Net Income Continuous Operations	543,000	331,000
Tax Provision	287,000	158,000
Pretax Income	830,000	489,000
Other Income Expense	-120,000	-93,000
Other Non Operating Income Expenses		-23,000	-32,000
Special Income Charges	-7,000	-64,000
Gain On Sale Of Business	0	16,000
Other Special Charges		0
Write Off		44,000	18,000
Restructuring And Mergern Acquisition	7,000	36,000
Gain On Sale Of Security	-113,000	-6,000
Net Non Operating Interest Income Expense	-57,000	-58,000
Total Other Finance Cost	1,000	1,000
Interest Expense Non Operating	56,000	61,000
Interest Income Non Operating	0	4,000
Operating Income	1,007,000	640,000
Operating Expense	239,000	217,000
Other Operating Expenses	67,000	76,000
Other Taxes	57,000	50,000
Selling General And Administration	115,000	91,000
General And Administrative Expense	115,000	91,000
Other Gand A	115,000	91,000
Gross Profit	1,246,000	857,000
Cost Of Revenue	1,081,000	1,134,000
Total Revenue	2,327,000	1,991,000
Operating Revenue	2,327,000	1,991,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	139,073	139,073
Ordinary Shares Number	353,445	352,965
Share Issued	492,518	492,038
Net Debt	4,121,000	3,977,000
Total Debt	4,536,000	4,590,000
Tangible Book Value	6,456,000	6,093,000
Invested Capital	10,870,000	10,586,000
Working Capital	-202,000	-450,000
Net Tangible Assets	6,456,000	6,093,000
Capital Lease Obligations	122,000	97,000
Common Stock Equity	6,456,000	6,093,000
Total Capitalization	10,736,000	10,373,000
Total Equity Gross Minority Interest	7,398,000	7,003,000
Minority Interest	942,000	910,000
Stockholders Equity	6,456,000	6,093,000
Gains Losses Not Affecting Retained Earnings	10,000	10,000
Other Equity Adjustments	10,000	10,000
Treasury Stock	6,320,000	6,320,000
Retained Earnings	-275,000	-721,000
Additional Paid In Capital	12,733,000	12,816,000
Capital Stock	308,000	308,000
Common Stock	308,000	308,000
Total Liabilities Net Minority Interest	10,681,000	10,758,000
Total Non Current Liabilities Net Minority Interest	8,190,000	8,187,000
Other Non Current Liabilities	463,000	426,000
Non Current Deferred Liabilities		0	14,000
Non Current Deferred Taxes Liabilities		0	14,000
Long Term Debt And Capital Lease Obligation	4,280,000	4,280,000
Long Term Debt	4,280,000	4,280,000
Long Term Provisions	3,447,000	3,481,000
Current Liabilities	2,491,000	2,571,000
Other Current Liabilities	251,000	227,000
Current Debt And Capital Lease Obligation	256,000	310,000
Current Capital Lease Obligation	122,000	97,000
Current Debt	134,000	213,000
Other Current Borrowings	134,000	213,000
Pensionand Other Post Retirement Benefit Plans Current	166,000	265,000
Current Provisions	337,000	280,000
Payables And Accrued Expenses	1,481,000	1,489,000
Current Accrued Expenses	554,000	506,000
Interest Payable	54,000	88,000
Payables	927,000	983,000
Total Tax Payable	129,000	112,000
Income Tax Payable	129,000	112,000
Accounts Payable	798,000	871,000
Total Assets	18,079,000	17,761,000
Total Non Current Assets	15,790,000	15,640,000
Other Non Current Assets	623,000	564,000
Non Current Deferred Assets	2,343,000	2,328,000
Non Current Deferred Taxes Assets	2,343,000	2,328,000
Net PPE	12,824,000	12,748,000
Accumulated Depreciation	-34,679,200	-33,886,000
Gross PPE	47,503,200	46,634,000
Other Properties	919,200	682,000
Current Assets	2,289,000	2,121,000
Other Current Assets	114,000	99,000
Hedging Assets Current
Assets Held For Sale Current
Prepaid Assets	92,000	93,000
Inventory	334,000	351,000
Receivables	1,456,000	1,062,000
Accounts Receivable	1,456,000	1,062,000
Allowance For Doubtful Accounts Receivable	-137,000	-140,000
Gross Accounts Receivable	1,593,000	1,202,000
Cash Cash Equivalents And Short Term Investments	293,000	516,000
Cash And Cash Equivalents	293,000	516,000

Cash Flow

	2026	2025	2024
Free Cash Flow	8,000	218,000
Repayment Of Debt	-79,000	0
Issuance Of Debt	0	0
Capital Expenditure	-546,000	-590,000
Interest Paid Supplemental Data	88,000	28,000
Income Tax Paid Supplemental Data	280,000	237,000
End Cash Position	293,000	516,000
Beginning Cash Position	516,000	475,000
Changes In Cash	-223,000	41,000
Financing Cash Flow	-235,000	-195,000
Cash Flow From Continuing Financing Activities	-235,000	-195,000
Net Other Financing Charges	-68,000	-41,000
Cash Dividends Paid	-88,000	-89,000
Common Stock Dividend Paid	-88,000	-89,000
Net Common Stock Issuance	0	-65,000
Net Issuance Payments Of Debt	-79,000	0
Net Short Term Debt Issuance	0	0
Net Long Term Debt Issuance	-79,000	0
Long Term Debt Payments	-79,000	0
Long Term Debt Issuance	0	0
Investing Cash Flow	-542,000	-572,000
Cash Flow From Continuing Investing Activities	-542,000	-572,000
Net Other Investing Changes	4,000	18,000
Net PPE Purchase And Sale	-546,000	-590,000
Purchase Of PPE	-546,000	-590,000
Operating Cash Flow	554,000	808,000
Cash Flow From Continuing Operating Activities	554,000	808,000
Change In Working Capital	-637,000	-224,000
Change In Other Working Capital	-6,000	-123,000
Change In Payables And Accrued Expense	-234,000	-6,000
Change In Accrued Expense	-163,000	54,000
Change In Payable	-71,000	-60,000
Change In Account Payable	-71,000	-60,000
Change In Prepaid Assets	-7,000	-70,000
Change In Inventory	1,000	-3,000
Change In Receivables	-391,000	-22,000
Other Non Cash Items	63,000	13,000
Asset Impairment Charge		44,000	18,000
Deferred Tax	-15,000	57,000
Deferred Income Tax	-15,000	57,000
Depreciation Amortization Depletion	553,000	566,000
Operating Gains Losses	47,000	21,000
Gain Loss On Investment Securities	47,000	37,000
Gain Loss On Sale Of Business	0	-16,000
Net Income From Continuing Operations	543,000	331,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $2.6B ▼ $2.3B -11.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 38.2% ▲ 53.5% +15.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 38.2% ▲ 43.3% +5.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 13.2% ▲ 19.2% +6.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2.3B/qtr (≈$9.3B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.92x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$8M

vs Positive

Operating Cash Flow

$554M

Latest quarter · Buffett's cash reality check

ROIC

5.1%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.6x

Net Assets: $7.4B

Asset Context — Oil & Gas E&P

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry

No auto-detected peers for Oil & Gas E&P. You can manually compare APA against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.44%

Low — management has little skin in the game

Return on Equity (ROE)

6.9%

Weak — poor returns on equity

Return on Assets (ROA)

2.5%

Fair — average asset utilization

Debt Trend YoY

-1.2% YoY

Debt is declining — management is deleveraging

Leadership Team

John Christmann IV

CEO & Director

Age 58

Pay: $5,286,085

1.185% of net income

Stephen Riney

President

Age 64

Pay: $3,400,459

0.762% of net income

Ben Rodgers

Executive VP & CFO

Age 45

Pay: $1,793,169

0.402% of net income

Tracey Henderson

Executive Vice President of Exploration

Age 58

Pay: $2,019,140

0.453% of net income

Mark Maddox

Executive Vice President of Administration

Age 58

Pay: $1,381,793

0.310% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.56%	33,780,445
Hotchkis & Wiley Capital Management, LLC	9.06%	32,015,114
State Street Corporation	7.02%	24,803,994
Vanguard Capital Management LLC	6.50%	22,973,674
Vanguard Portfolio Management LLC	4.89%	17,279,938
Dimensional Fund Advisors LP	4.63%	16,376,952
Invesco Ltd.	4.46%	15,753,595
FMR, LLC	3.62%	12,777,533

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.33

Low volatility — more stable than the market

Short Interest

10.3% of float

Moderate short interest

Debt-to-Equity

0.61x

Conservative balance sheet — low financial risk

Current Ratio

0.92x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $17.74 Current: $33.03 High: $45.66

Currently at 55% of 52-week range

APA Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis