APA
Cheap, but not in a sad way
APA is one of those stocks that looks like it’s been left on the discount rack for too long. The note points to a forward P/E of 6.7x and EV/EBITDA of 3.6x — the kind of multiples that make value investors perk up like they just heard free nachos.
The setup: less spending, more breathing room
The bullish case isn’t just “oil might go up someday.” The analyst is leaning on a few concrete levers:
- cost cuts that should help margins
- a 10% capex cut for 2026
- stable operations in Egypt
That combo should, in theory, leave APA with more free cash flow and a better shot at holding up even if crude prices decide to be dramatic.
Suriname is the extra plot twist
The headline also nods to Suriname optionality, which is finance-speak for “there’s a maybe-big upside thing in the background.” That kind of optionality can matter a lot in E&Ps, because one successful development project can change the whole story faster than Wall Street can update its models.
Big picture
This isn’t a moonshot call; it’s a classic value pitch with a side of operational discipline. If the cost cuts stick and oil doesn’t get too unruly, APA could keep looking like the kind of stock that makes you ask: why is this still this cheap?