APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. APA offers strong free cash flow generation driven by favorable natural gas price differentials and underappreciated reinvestment opportunities in Suriname, Egypt, and potentially Alaska. Despite concerns over shorter Permian resource life, APA trades at attractive value metrics relative to its free cash flow yield and remains leveraged to a structurally undersupplied global energy market.

APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. APA offers strong free cash flow generation driven by favorable natural gas price differentials and underappreciated reinvestment opportunities in Suriname, Egypt, and potentially Alaska. Despite concerns over shorter Permian resource life, APA trades at attractive value metrics relative to its free cash flow yield and remains leveraged to a structurally undersupplied global energy market.

APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and in Egypt. The company offers strong free cash flow generation driven by favorable natural gas price differentials and has underappreciated reinvestment opportunities in Suriname, Egypt, and potentially Alaska. Despite concerns over shorter Permian resource life, APA trades at attractive value metrics relative to its free cash flow yield and remains leveraged to a structurally undersupplied global energy market. The stock's recent decline was attributed to oil price retreat, but quarterly results were in line with expectations and supportive of our investment thesis.

APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. What really excites us about APA is that it remains leveraged to a structurally undersupplied global energy market. The Company generates strong free cash flow in a range of commodity price scenarios, and remains priced at a discount to the market despite being a superior business that grows above GDP while returning most of its cash to shareholders.

APA Corp. (APA) is an independent oil and gas exploration and production company operating in the Permian and in Egypt. The quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. What really excites us about APA is that it remains leveraged to a structurally undersupplied global energy market. The Company generates strong free cash flow in a range of commodity price scenarios.

APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. What really excites us about APA is that it remains leveraged to a structurally undersupplied global energy market. That said, the Company generates strong free cash flow in a range of commodity price scenarios.

APA Corp. (APA) is an independent oil and gas E&P (exploration & production) company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. APA offers strong free cash flow generation driven by favorable natural gas.

APA Corp. (APA) is an independent oil and gas E&P company operating in the Permian and Egypt. The quarterly results were in line with expectations and supportive of our investment thesis. APA offers strong free cash flow generation driven by favorable natural gas price differentials and underappreciated reinvestment opportunities in Suriname, Egypt, and potentially Alaska. Despite concerns over shorter Permian resource life, APA trades at attractive value metrics relative to its free cash flow yield and remains leveraged to a structurally undersupplied global energy market.

Despite a challenging quarter where our energy holdings fell -17%, we believe in the long-term value of companies like APA Corporation. They own irreplaceable, long-lived, low-obsolescence assets, and we purchased their shares at a time of falling exploration budgets despite rising demand. We expect our patience to be rewarded in time as the market recognizes the intrinsic value of these assets.

We continue to view APA constructively. The company’s strategy remains firmly anchored in disciplined capital allocation, prioritizing free cash flow generation and balance sheet strength over volume growth. We believe APA is well positioned to deliver shareholder value across the cycle, supported by its focus on free cash flow generation and balance sheet strength.