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APA Financial Strength

: 4 (As of Jun. 2022)
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APA has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

APA's Interest Coverage for the quarter that ended in Jun. 2022 was 21.62. APA's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.44. As of today, APA's Altman Z-Score is 1.92.


Competitive Comparison

For the Oil & Gas E&P subindustry, APA's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

APA Financial Strength Distribution

For the Oil & Gas industry and Energy sector, APA's Financial Strength distribution charts can be found below:

* The bar in red indicates where APA's Financial Strength falls into.



APA Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

APA's Interest Expense for the months ended in Jun. 2022 was $-74 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,600 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,160 Mil.

APA's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1600/-74
=21.62

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

APA's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(246 + 5160) / 12188
=0.44

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

APA has a Z-score of 1.92, indicating it is in Grey Zones. This implies that APA is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


APA  (NAS:APA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

APA has the Financial Strength Rank of 4.


APA Financial Strength Related Terms

Thank you for viewing the detailed overview of APA's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


APA Business Description

APA logo
Industry
Address
2000 Post Oak Boulevard, Suite 100, One Post Oak Central, Houston, TX, USA, 77056-4400
Based in Houston, APA Corp. is an independent exploration and production company. It operates primarily in the U.S., Egypt, the North Sea, and Suriname. At year-end 2020, proved reserves totaled 913 million barrels of oil equivalent, with net reported production of 388 mboe/d (64% of which was oil and natural gas liquids, with the remainder comprising natural gas).
Executives
Stover David L director NOBLE ENERGY, INC. 1001 NOBLE ENERGY WAY HOUSTON TX 77070
Hooper Charles W director C/O APA CORPORATION 2000 POST OAK BLVD STE 100 HOUSTON TX 77056
Bretches D. Clay officer: Exec. VP, Operations C/O APACHE CORPORATION 2000 POST OAK BLVD, STE 100 HOUSTON TX 77056
Lannie P Anthony officer: Exec. Vice Pres & Gen Counsel C/O APACHE CORPORATION 2000 POST OAK BLVD., SUITE 100 HOUSTON TX 77056
Hoyt Rebecca A officer: Sr. VP, Chief Acct Officer C/O APACHE CORPORATION 2000 POST OAK BLVD., SUITE 100 HOUSTON TX 77056-4400
Bay Annell R director C/O MARATHON OIL CORPORATION 5555 SAN FELIPE ST HOUSTON TX 77056
Mckay Lamar director 2000 POST OAK BLVD STE 100 HOUSTON TX 77056
Nelson Amy H director 2000 POST OAK BLVD. SUITE 100 HOUSTON TX 77056
Montgomery William C director C/O APACHE CORPORATION 2000 POST OAK BLVD., SUITE 100 HOUSTON TX 77056
Ragauss Peter A director 2929 ALLEN PARKWAY SUITE 2100 HOUSTON TX 77019
Lowe John E director 600 N DAIRY ASHFORD HOUSTON TX 77079
Joung Chansoo director C/O WARBURG PINCUS LLC 450 LEXINGTON AVENUE NEW YORK NY 10017
Joyce Rene R director P.O. BOX 130430 HOUSTON TX 77219-0430
Rabun Daniel Wayne director 6 CHESTERFIELD GARDENS 3RD FLOOR LONDON X0 W1J 5BQ
Christmann John J director, officer: CEO and President C/O APACHE CORP 2000 POST OAK BLVD STE. 100 HOUSTON TX 77056

APA Headlines

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