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Stock Report | October 22, 2011 | NYS Symbol: APA | APA is in the S&P 500

Apache Corp
S&P Recommendation STRONG BUY

55555

Price $94.73 (as of Oct 21, 2011)

12-Mo. Target Price $145.00

Investment Style Large-Cap Blend

UPDATE: PLEASE SEE THE ANALYST'S LATEST RESEARCH NOTE IN THE COMPANY NEWS SECTION

GICS Sector Energy Sub-Industry Oil & Gas Exploration & Production

Summary Apache is one of the largest independent exploration and production companies in the U.S. The company explores for, develops, and produces natural gas, crude oil, and natural gas liquids.

Key Stock Statistics (Source S&P, Vickers, company reports) 52-Wk Range $134.13 73.04 Trailing 12-Month EPS $9.95 Trailing 12-Month P/E 9.5 $10K Invested 5 Yrs Ago $14,853 Price Performance
30-Week Mov. Avg. 12-Mo. Target Price
160 120

S&P Oper. EPS 2011E S&P Oper. EPS 2012E P/E on S&P Oper. EPS 2011E Common Shares Outstg. (M)

12.45 13.25 7.6 383.9

Market Capitalization(B) Yield (%) Dividend Rate/Share Institutional Ownership (%)

$36.370 0.63 $0.60 86

Beta S&P 3-Yr. Proj. EPS CAGR(%) S&P Credit Rating

1.28 33 A-

Qualitative Risk Assessment


10-Week Mov. Avg. Relative Strength GAAP Earnings vs. Previous Year Up Down No Change Volume Above Avg. Below Avg. STARS

LOW

MEDIUM

HIGH

80 60

Our risk assessment for APA reflects its participation in a highly capital-intensive industry that derives value based on commodity prices that can be highly volatile. However, APA is a large exploration and production company and is diversified across major producing regions. Quantitative Evaluations

Vol. Mil. 30 20 10 0 5 1 J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 4

S&P Quality Ranking


D
5

AB B+ AA A+

B-

Relative Strength Rank


50
LOWEST = 1

MODERATE
HIGHEST = 99

2008

2009

2010

2011
Options: ASE, CBOE, P, Ph

Revenue/Earnings Data Revenue (Million $) 1Q 2Q 2011 3,925 4,338 2010 2,673 2,972 2009 1,634 2,093 2008 3,188 3,900 2007 1,997 2,468 2006 1,999 2,062 Earnings Per Share ($) 2011 2.86 3.17 2010 2.08 2.53 2009 -5.25 1.31 2008 3.03 4.28 2007 1.47 1.89 2006 1.97 2.17

Analysis prepared by Equity Analyst Michael Kay on Aug 18, 2011, when the stock traded at $104.89. Highlights

Investment Rationale/Risk

We believe a broader portfolio of assets has enlarged APA's opportunity set, providing visible production growth and significant exploration upside. First half 2011 production was up 21%, on track to meet growth targets of 13%-17%, reflecting an 80 rig global program and ramped activity at the U.S. onshore liquidsrich Granite Wash (10 rigs) and Permian Basin (24 rigs) plays. APA is benefiting from widening Brent crude (60% of oil volumes) differentials versus the U.S. WTI benchmark. A resumption of Gulf of Mexico deepwater drilling should allow APA to begin exploiting a deep prospect inventory. No disruptions in Egypt were reported and the Van Gogh field in Australia is back online after cyclone activity earlier in the year. APA's drilling capex budget of $7.5 billion for 2011 is up from $5.3 billion, excluding $12 billion in acquisitions. Under this budget, we expect substantial free cash flow this year. We see EPS of $12.45 in 2011 and $13.25 in 2012, up from adjusted EPS of $8.92 in 2010, reflecting production and oil price gains. APA's debtto-capital ratio is 24%, and we view its balance sheet as one of the strongest among peers.

We believe APA's $11.5 billion of acquisitions in 2010 will add significant future opportunity in core regions. In our view, APA has a proven track record of unlocking value from acquired assets, and it plans to focus much of 2011 on integration and exploiting mature reserves and focusing capital on international development projects. Its portfolio of reserves is balanced between liquids and natural gas (44/56) and is geographically diverse. In 2011, we see Canada and Egypt driving international production, while APA's Granite Wash and Permian Basin program should drive onshore domestic volumes. We expect APA to enhance its top-tier balance sheet with free cash flow in 2011, and we expect about $1 billion in divestments. Risks to our opinion and target price include unfavorable changes to economic, industry, and operating conditions, including increased costs, and difficulty replacing reserves. We think APA's large international oil projects provide solid growth visibility. We blend several valuation methods, including NAV ($151), DCF ($149; WACC 11%; terminal growth 3%), and relative metrics to derive our $145 target price.

3Q -3,013 2,332 3,365 2,499 2,261

4Q -3,434 2,570 1,937 3,014 1,967

Year -12,092 8,615 12,390 9,978 8,289

E2.94 2.12 1.30 3.52 1.83 1.94

E3.39 1.77 1.72 -8.80 3.19 1.56

E12.45 8.46 -0.87 2.10 8.39 7.64

Fiscal year ended Dec. 31. Next earnings report expected: NA. EPS Estimates based on S&P Operating Earnings; historical GAAP earnings are as reported.

Dividend Data (Dates: mm/dd Payment Date: mm/dd/yy)


Amount ($) Date Decl. Ex-Div. Date Stk. of Record Payment Date

0.150 0.150 0.150 0.150

11/22 02/22 05/18 09/20

01/19 04/19 07/20 10/19

01/21 04/22 07/22 10/21

02/22/11 05/23/11 08/22/11 11/22/11

Dividends have been paid since 1965. Source: Company reports.

Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies, Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Business Summary August 18, 2011 CORPORATE OVERVIEW. One of the largest independent exploration and production (E&P) companies in the U.S., Apache Corp. (APA) explores for, develops and produces natural gas, crude oil and natural gas liquids (NGLs). APA has E&P operations in seven countries, the U.S., Canada, Egypt, the U.K., Australia, Argentina and Chile. Acquisitions in 2010 substantially added to its asset base in the U.S., Canada, and Egypt. In North America, APA's interests are focused on the Gulf of Mexico, the Gulf Coast, Permian and Central regions of the U.S. and Canada. Outside of North America, APA has interests in Egypt, offshore Western Australia, offshore the U.K. in the North Sea, and onshore Argentina and Chile. APA's North American asset base comprises the U.S. Central region, U.S. Gulf Coast region, the Permian region and Canada region. In 2010 North America assets contributed 48% of production and 70% of estimated proved reserves at year end. APA has 6.3 million net acres across Canada, including approximately 1.3 million net in Western Alberta and British Columbia acquired from BP in 2010. APA and EnCana Corporation (ECA) are 50% partners and control more than 400,000 acres in the Horn River Basin shale-gas play in northeast British Columbia. Egypt holds APA's largest acreage position, with more than 11 million gross acres that provide considerable exploration and development opportunities. In addition to being the largest acreage holder in Egypt's Western Desert, APA believes it is also the largest producer of liquid hydrocarbons and natural gas in the Western Desert and the third largest in all of Egypt. In 2010, Egypt contributed 24% of total production and 10% of total estimated proved reserves. In Australia, exploration activity is focused in the offshore Carnarvon, Exmouth and Browse Basins, where APA holds 12.2 million gross acres. In 2010, the region increased production 40% and accounted for approximately 12% of total production and 11% of year-end estimated proved reserves. Increases reflect the start-up of the Van Gogh field in 2010. Proved oil and gas reserves grew 25%, to 2.95 billion barrels of oil equivalent (boe; 67% developed; 44% liquids) in 2010, reflecting close to $12 billion in acquisitions. Oil and gas production grew 13%, to 657 thousand boe per day (52% liquids). In 2010, APA participated in drilling 904 gross wells, up from 610 in 2009, with a 92% success rate. At year-end 2010, the U.S. held 44% of estimated proved reserves, Canada 26%, Egypt 10%, Australia 11%, U.K. 5%, and Argentina 4%. IMPACT OF MAJOR DEVELOPMENTS. On July 20, 2010, APA agreed to acquire BP's operations, acreage and infrastructure in the Permian Basin and Egypt's Western Desert, and substantially all of BP's upstream natural gas business in western Alberta and British Columbia. APA paid about $6.4 billion for the assets, which include estimated proved reserves of 385 MMBOE and production of 83 MBOE/day. The acquisitions were closed in 2010. On June 10, 2010, APA completed the acquisition of Devon Energy Corporation's assets in the shallow waters of the Gulf of Mexico Shelf for $1.05 billion. APA estimates net proved and probable reserves of 83 MMBOE at year-end 2009. In April 2010, APA and Mariner Energy (ME) entered into a merger agreement under which ME shareholders would receive, in aggregate, 0.17043 of a share of APA common stock and $7.80 in cash for each outstanding share of ME common stock, subject to an election feature and proration. APA also will assume $1.2 billion in debt for a total value of approximately $3.7 billion. The transaction was completed on November 11, 2010. FINANCIAL TRENDS. Since early 2010, APA has ramped up activity as it moved into development stages at Horn River, increased drilling in the Granite Wash formation, and doubled oil drilling activity in the Permian Basin. With capital expenditures budgeted at $7.5 billion for 2011, up from $5.3 billion in 2010, excluding acquisitions, we estimate a 14% boost in 2011 production and believe APA can sustain double-digit production growth through 2015. We expect free cash flow to surpass $1.5 billion in 2011, allowing APA to reduce debt and integrate acquired assets. APA is currently planning to divest $1.0 billion of properties, likely legacy conventional properties in Canada. We believe APA's project development inventory and strong balance sheet should provide built-in production growth and acquisition opportunities going forward. APA entered 2010 with nearly $2 billion of cash and a long-term debt to total capitalization ratio of 24%, versus peer averages of over 30%. It ended 2010 with a debt-to-capitalization ratio of 25%, despite capital investments of $17 billion, including acquisitions totaling more than $11 billion. Corporate Information Investor Contact A. Leon (713-296-6692) Office 2000 Post Oak Blvd Ste 100, Houston, TX 77056-4400. Telephone 713-296-6000. Website http://www.apachecorp.com

Officers Chrmn & CEO G.S. Farris COO & Co-Pres R.J. Eichler EVP & CFO T.P. Chambers EVP & CTO M.S. Bahorich EVP & General Counsel P.A. Lannie

Board Members F. M. Bohen G. S. Farris R. M. Ferlic E. C. Fiedorek A. D. Frazier, Jr. P. A. Graham S. D. Josey C. Joung J. A. Kocur G. D. Lawrence, Jr. F. H. Merelli W. C. Montgomery R. D. Patton C. J. Pittman

Domicile Delaware Founded 1954 Employees 4,449 Stockholders 440,000

Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies, Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Quantitative Evaluations S&P Fair Value Rank
31
LOWEST

Expanded Ratio Analysis


2 3 4 5
HIGHEST

Based on S&P's proprietary quantitative model, stocks are ranked from most overvalued (1) to most undervalued (5).

Fair Value Calculation Investability Quotient Percentile Volatility Technical Evaluation Insider Activity

$90.00 Analysis of the stock's current worth, based on S&P's proprietary


quantitative model suggests that APA is slightly overvalued by $4.73 or 5.0%.

Price/Sales Price/EBITDA Price/Pretax Income P/E Ratio Avg. Diluted Shares Outstg (M)
Figures based on calendar year-end price

2010 3.54 NA 8.22 14.12 359.0

2009 4.02 NA NM NM 335.9

2008 2.03 2.80 26.95 35.30 337.2

2007 3.61 4.98 7.70 12.79 334.6

98
LOWEST = 1 HIGHEST = 100

Key Growth Rates and Averages Past Growth Rate (%) Sales Net Income Ratio Analysis (Annual Avg.) Net Margin (%) % LT Debt to Capitalization Return on Equity (%)
1 Year 3 Years 5 Years 9 Years

APA scored higher than 98% of all companies for which an S&P Report is available.

40.36 NM

2.15 NM

7.91 -97.11

19.30 -79.92

LOW BEARISH

AVERAGE

HIGH

Since August, 2011, the technical indicators for APA have been BEARISH.

25.07 24.93 15.10

9.17 22.78 5.94

17.30 19.44 11.85

22.24 21.68 15.77

UNFAVORABLE

NEUTRAL

FAVORABLE

Company Financials Fiscal Year Ended Dec. 31 Per Share Data ($) Tangible Book Value Cash Flow Earnings S&P Core Earnings Dividends Payout Ratio Prices:High Prices:Low P/E Ratio:High P/E Ratio:Low Income Statement Analysis (Million $) Revenue Operating Income Depreciation, Depletion and Amortization Interest Expense Pretax Income Effective Tax Rate Net Income S&P Core Earnings 2010 57.84 17.25 8.46 8.46 0.60 7% 120.80 81.94 14 10 2009 46.34 6.57 -0.87 -0.87 0.60 NM 106.46 51.03 NM NM 2008 48.63 25.68 2.10 2.08 0.70 33% 149.23 57.11 71 27 2007 46.49 15.41 8.39 8.38 0.60 7% 109.32 63.01 13 8 2006 39.30 13.19 7.64 7.30 0.60 8% 76.25 56.50 10 7 2005 31.06 12.22 7.84 7.60 0.34 4% 78.15 47.45 10 6 2004 24.18 8.81 5.04 5.19 0.32 6% 55.16 36.79 11 7 2003 19.25 6.67 3.35 3.29 0.21 6% 41.68 26.26 12 8 2002 15.33 4.55 1.80 1.73 0.19 11% 28.88 21.12 16 12 2001 14.69 5.30 2.37 2.28 0.12 5% 31.55 16.56 13 7

12,092 NA 3,194 229 5,206 NA 3,032 3,000

8,615 NA 2,500 242 326 187.1% -284 -292

12,390 8,988 7,952 166 932 23.6% 712 701

9,978 7,224 2,348 312 4,673 39.8% 2,812 2,805

8,289 5,753 1,816 158 4,010 36.3% 2,552 2,434

7,584 5,792 1,416 122 4,206 37.6% 2,624 2,539

5,333 4,119 1,222 120 2,663 37.3% 1,670 1,713

4,190 3,241 1,073 127 1,922 43.0% 1,095 1,069

2,560 1,048 844 133 899 38.3% 554 524

2,777 2,146 821 132 1,199 39.7% 723 681

Balance Sheet & Other Financial Data (Million $) Cash 134 Current Assets 3,480 Total Assets 43,425 Current Liabilities 3,524 Long Term Debt 8,095 Common Equity 24,377 Total Capital 32,472 Capital Expenditures 4,922 Cash Flow 6,194 Current Ratio 1.0 % Long Term Debt of Capitalization 24.9 % Return on Assets 8.5 % Return on Equity 15.1

2,048 4,586 28,186 2,393 4,950 15,779 20,839 3,631 2,208 1.9 23.9 NM NM

1,973 4,451 29,186 2,615 4,809 16,509 24,484 5,973 8,658 1.7 19.6 2.5 4.5

126 2,752 28,635 2,665 4,227 15,280 23,315 5,807 5,154 1.0 20.7 10.6 19.8

141 2,490 24,308 3,812 2,020 13,093 18,830 3,892 4,363 0.7 13.3 11.7 21.6

229 2,162 19,272 2,187 2,192 10,443 12,733 3,716 4,034 1.0 17.2 15.1 28.2

111 1,349 15,502 1,283 2,588 8,106 10,793 2,456 2,887 1.1 24.0 12.0 22.9

33.5 899 12,416 820 2,327 6,434 8,860 1,595 2,163 1.1 26.3 10.0 19.4

51.9 767 9,460 532 2,159 4,826 7,083 1,037 1,387 1.4 30.5 6.0 12.2

35.6 698 8,934 522 2,244 4,112 7,655 1,525 1,525 1.3 29.3 8.8 18.6

Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review. Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies, Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Sub-Industry Outlook
Our fundamental outlook for the oil & gas exploration & production (E&P) sub-industry for the next 12 months is positive, as we expect strong oil prices and production growth to generate earnings and cash flow growth. We see EPS growth of about 17% in both 2011 and 2012. U.S. E&Ps, heavily weighted toward gas, have begun to focus on unconventional oil and natural gas liquids (NGLs). Like the shale gas frenzy several years ago, much of the activity remains focused onshore, where early drilling results have been successful at several untapped basins with high liquids content. Heavy M&A activity has persisted domestically in 2011, as integrated and national oil companies seek growth avenues. As of October, the U.S. Energy Information Administration (EIA) estimated that global oil demand grew 2.76 million b/d in 2010, to 87.08 million b/d, and sees growth of 1.32 MMb/d in 2011, to 88.4 MMb/d, and 1.44 MMb/d in 2012, to 89.84 MMb/d. Due to new OPEC capacity, the EIA estimates global oil supply grew 2.6 MMb/d in 2010, to 86.9 million b/d, and sees supply growth of 0.9 MMb/d in 2011 and 1.57 MMb/d in 2012. On disruptions in Libya, OPEC spare production capacity is believed to have fallen to 2.43 MMb/d (ex Iraq and Libya) in the third quarter, according to the EIA. OPEC production (ex Iraq and Libya) is 27.37 MMb/d, 2.4 MMb/d above quota. Earlier in 2011, oil prices reached highs not seen since 2008, reflecting the disruption of exports from Libya and unrest elsewhere in the Middle East/North Africa. Since early May, prices have retreated on tempered global economic data, in our view. As of October 20, using S&P estimates based on data from IHS Global Insight, West Texas Intermediate (WTI) spot oil prices were projected to average about $90.50 per barrel in 2011 and $88.60 in 2012, up from $79 in 2010. Growing volumes of Canadian imports and greater takeaway capacity from the Rockies and Mid-continent shale plays have led to record high storage levels at Cushing, OK, leading to a price discount for WTI compared to similar quality global crudes such as Brent crude oil. For U.S. natural gas, high inventory levels and increased production from onshore shale plays have pressured spot prices, and we look for low natural gas prices to depress U.S. drilling activity in 2011. As of October 20, using forecasts from the EIA, S&P expected Henry Hub spot prices to average $4.15 per million Btu in 2011 and $4.30 in 2012, versus $4.40 in 2010. Year to date through October 14, the S&P Oil & Gas Exploration & Production Index fell 10.7%, versus a 3.0% decline in the S&P 1500. --Michael Kay
40 20 0

Stock Performance
GICS Sector: Energy Sub-Industry: Oil & Gas Exploration & Production Based on S&P 1500 Indexes Month-end Price Performance as of 09/30/11
200 180 160 140 120 100 80 60

2007
Sub-Industry

2008

2009

2010
S&P 1500

2011

Sector

NOTE: All Sector & Sub-Industry information is based on the Global Industry Classification Standard (GICS)

Sub-Industry : Oil & Gas Exploration & Production Peer Group*: Exploration & Production - Large
Peer Group Apache Corp Anadarko Petroleum CNOOC Ltd ADS Canadian Natural Resources Devon Energy EOG Resources EnCana Corp Talisman Energy Stock Symbol APA APC CEO CNQ DVN EOG ECA TLM Stk.Mkt. Cap. (Mil. $) 36,369 39,347 75,915 36,642 26,827 24,343 15,396 14,222 Recent Stock Price($) 94.73 79.04 169.95 33.40 64.41 90.62 20.91 13.88 52 Week High/Low($) 134.13/73.04 85.50/57.11 271.94/141.27 52.04/25.69 93.56/50.74 121.44/66.81 35.22/17.64 25.21/10.75 Beta 1.28 1.42 1.37 1.69 1.09 1.00 0.92 1.46 Yield (%) 0.6 0.5 3.4 1.1 1.1 0.7 3.8 1.9 P/E Ratio 10 47 7 26 5 57 21 NM Fair Value Calc.($) 90.00 65.50 189.70 NA 58.80 65.20 18.80 13.10 S&P Return on Quality IQ Revenue Ranking %ile (%) AB+ NR AB B+ B+ B+ 98 37 89 30 94 44 38 50 25.1 7.0 29.7 15.6 25.6 2.8 16.5 6.0 LTD to Cap (%) 24.9 36.9 5.0 22.7 15.3 32.4 24.9 21.2

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies,Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
S&P Analyst Research Notes and other Company News
September 22, 2011 Apache Corp. announced the appointment of William C. Montgomery, a managing director of Quantum Energy Partners, to its board of directors. Montgomery is a member of Quantum's executive and investment committees, involved in setting of the firm's strategy and responsible for originating and overseeing investments in the oil and gas upstream, midstream, and oilfield service sectors. September 21, 2011 10:16 am ET ... S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF APACHE CORP (APA 94.52*****): APA plans to acquire ExxonMobil's (XOM 71, Strong Buy) Beryl and other North Sea fields for $1.75B (expected Q4 close), lifting North Sea production and reserves 54% and 44%, respectively (65% liquids). North Sea success at Forties (doubled reserves since '03) should aid to maximize Beryl opportunities. APA boosts exposure to higher-priced Brent crude and UK natural gas. North Sea will represent 11% of production (7% prior). We find APA's balance sheet superior with debt-to-capital of 23%, cash of $1.1B, and capital flexibility vs. peers, and see valuation as compelling. /M. Kay August 4, 2011 03:56 pm ET ... S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF APACHE CORP. (APA 109.19*****): Q2 adjusted EPS of $3.22, vs. $2.46, is $0.19 above our forecast on production and pricing. H1 '11 production rose 21%, on track to meet targets of 13%-17%. Volumes are split nearly 50/50 between liquids and gas and 40/60 U.S. and abroad, and this mix in assets is allowing APA to benefit from wider global crude oil differentials vs. WTI. We see growth in most operating regions. On Q2 and updated prices, we lift our '11 EPS estimate $0.75 to $12.45, and keep '12's at $13.25. On below peer metrics, we cut our target price $15 to $145, reflecting the recent pullback in E&P stocks. /M. Kay July 28, 2011 The Board of Apache Corp. appointed Frederick M. Bohen as Chair and A.D. Frazier and Charles J. Pittman as members of the Stock Plan Committee. June 1, 2011 Apache Corp. announced the promotions and appointments to its management team. Jon Jeppesen has been promoted to the new role of executive vice president overseeing the operations of the Gulf of Mexico Shelf, Deepwater and Gulf Coast Onshore regions. Jon Graham has been named vice president of the global environmental, health and safety organization. Mark Bauer has been promoted to region vice president for the Gulf of Mexico Shelf. Michael Bose moved up to region vice president and country manager for Argentina. Graham Lawton was named vice president - liquefied natural gas projects, leading the Kitimat project team for the LNG facility and Pacific Trail Pipelines. Kenny Paterson has been named vice president, LNG marketing and shipping, of Apache Energy Ltd. April 28, 2011 03:54 pm ET ... S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF APACHE CORP (APA 129.84*****): Q1 adjusted EPS of $2.90, vs. $2.10, is $0.40 above our estimate, on rising liquids prices, a production beat, and lower costs per unit. Production in Egypt, a concern earlier in '11, rose vs. Q4, while Australia saw only minor weather-related issues. We see '11 production growth of 15% and expect higher activity at the liquids-rich Permian Basin, where oil production is up 35%, and Granite Wash in Texas. On higher oil prices and rising production forecasts, we up our '11 EPS view $0.60 to $11.70 and '12's $0.80 to $13.25. On DCF and relative metrics, our target price is $160. /M.Kay April 7, 2011 12:47 pm ET ... S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF APACHE CORP. (APA 128.66*****): After a highly active '10 in M&A markets, we expect APA's focus to turn to asset integration, debt reduction and efficiencies. We see exposure to oil (52% of production vs. 28% for our E&P universe), strong production growth (14% in '11), and a solid exploration portfolio. These factors should help improve cash flow, margins, and on new realized price forecasts, we lift our '11 EPS view $1.61 to $11.10 and '12's by $0.62 to $12.45. On our proved NAV, and rising E&P metrics, we raise our target price by $20 $160. We see the valuation discount narrowing this year. /M. Kay March 15, 2011 Apache Corp. announced that Dave Gilbronson and Mark Bright will lead Apache's oil and gas marketing organization, which will be divided along geographic lines. Gilbronson has been appointed to vice president of international marketing and Bright to vice president of North America marketing. Gilbronson, director of risk management since 2009, joined Apache in 1988. Earlier, he was vice president of commercial and governmental affairs in Argentina, operations general manager for Apache Egypt Companies, managing director of Apache Poland, and director of international technical services based in Houston. Bright, Apache's controller of North America accounting since 2006, joined Apache in 1999. He held positions of increasing responsibility within the finance organization, contributing significantly to process improvement, streamlining, and the development of future leaders. March 7, 2011 10:55 am ET ... S&P RAISES FUNDAMENTAL OUTLOOK ON EXPLORATION & PROD'N SUB-INDUSTRY TO POSITIVE (APA 122.78*****): With oil prices rising above $105/bbl on supply disruption fears stemming from Middle East/N. Africa geopolitical tensions, we think the independent E&P space lends exposure to tight oil markets. Many E&P's began shifting away from weak natural gas, towards oil and NGL projects in '09/'10, positioning those exposed to liquids for upcoming margin expansion in '11-'12. Rising competition among integrated oils (upstream spending seen up 2%-5%) should drive active M&A markets. Most '11 E&P capex, forecasted up 10%-15%, is aimed at oily prospects (Bakken, Eagle Ford, Permian, etc). /M. Kay February 28, 2011 Apache Corporation announced the appointments of Rod Eichler to president and chief operating officer, and Roger Plank to president and chief corporate officer. John Crum, who served as co-chief operating officer and president -- North America, is leaving the company to become chief executive officer of Midstates Petroleum. In his new role as president and sole chief operating officer, Eichler will be responsible for Apache's 10 operating regions, worldwide drilling, gas monetization and worldwide projects. Roger Plank is assuming responsibilities for marketing and corporate purchasing, in addition to his management role in finance, administration and business development. February 17, 2011 02:59 pm ET ... S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF APACHE CORP. (APA 121.27*****): Q4 EPS of $2.19 vs. $1.96 is $0.07 below our forecast as production beat, despite downtime in Australia, but costs were higher on acquired assets. Van Gogh in Australia is back online, after cyclones, and APA sees limited downside risk in Egypt, its lowest-cost asset, in our view. Acquisitions have set the stage for multi-year growth; we see production up 14% in '11. Updating our model, we cut our '11 EPS view $1.86 to $9.49, and set '12's at $11.83. We keep our $140 target price, on updated NAV, and view positively exposure to oil, a diverse asset base and attractive valuation. /M. Kay

Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies,Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Analysts' Recommendations
Monthly Average Trend Buy
B

Wall Steet Consensus Opinion


Buy/Hold
BH

Hold
H

Weak Hold
WH

Sell S

No Opinion

APA Trend

BUY/HOLD Companies Offering Coverage Over 30 firms follow this stock; not all firms are displayed. Argus Research Company Barclays Capital Bofa Merrill Lynch Buckingham Research Citi Credit Agricole Securities Deutsche Bank North America FBR Capital Markets & Co. Goldman Sachs & Co. Howard Weil Inc. ISI Group Johnson Rice & Company Jpmorgan Macquarie Research Morningstar, Inc. Oppenheimer & Co. Peters & Co. Limited Pritchard Capital Partners, LLC RBC Capital Markets Raymond James Sanford C. Bernstein & Co., LLC Scotia Capital Simmons & Company International Societe Generale Standard & Poors Sterne, Agee & Leach Ticonderoga Securities Tudor Pickering & Co. SEC UBS (us) Wells Fargo Securities, LLC

Wall Street Average


B BH H WH S

Number of Analysts Following Stock 30 20 10

Stock Price ($) 140

120

100

80

2009

2010

2011

Of the total 31 companies following APA, 28 analysts currently publish recommendations. No. of Ratings 12 11 5 0 0 0 28 % of Total 43 39 18 0 0 0 100 1 Mo. Prior 3 Mos. Prior 0 11 0 11 0 5 0 0 0 0 0 0 0 27

Buy Buy/Hold Hold Weak Hold Sell No Opinion Total Wall Street Consensus Estimates
Estimates 14 12 10 8
J J A S O N D

Wall Street Consensus vs. Performance


2011 2012 2010 Actual $8.46

2010

For fiscal year 2011, analysts estimate that APA will earn $11.63. For the 2nd quarter of fiscal year 2011, APA announced earnings per share of $3.17, representing 27% of the total annual estimate. For fiscal year 2012, analysts estimate that APA's earnings per share will grow by 3% to $11.93.

2010

2011

Fiscal Years 2012 2011 2012 vs. 2011 Q3'12 Q3'11 Q3'12 vs. Q3'11

Avg Est. 11.93 11.63 3% 2.99 2.78 8%

High Est. 15.41 12.45 24% 3.72 3.08 21%

Low Est. 8.62 10.69 -19% 2.14 2.15 -0.5%

# of Est. 28 24 17% 12 23 -48%

Est. P/E 7.9 8.1 -2% 31.7 34.1 -7%

A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300 Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over the past 15 months.

Source: S&P,I/B/E/S International, Inc. Redistribution or reproduction is prohibited without written permission. Copyright 2011 The McGraw-Hill Companies,Inc.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Glossary
S&P STARS Since January 1, 1987, Standard and Poors Equity Research Services has ranked a universe of common stocks based on a given stocks potential for future performance. Under proprietary STARS (STock Appreciation Ranking System), S&P equity analysts rank stocks according to their individual forecast of a stocks future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350 Index or S&P 500 Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analysts own models as well as internal proprietary models resulting from dynamic data inputs. S&P 12-Month Target Price The S&P equity analysts projection of the market price a given security will command 12 months hence, based on a combination of intrinsic, relative, and private market valuation metrics, including S&P Fair Value. Investment Style Classification Characterizes the stock as Growth or Value, and indicates its capitalization level. Growth is evaluated along three dimensions (earnings, sales and internal growth), while Value is evaluated along four dimensions (book-to-price, cash flow-to-price, dividend yield and sale-to-price). Growth stocks score higher than the market average on growth dimensions and lower on value dimensions. The reverse is true for Value stocks. Certain stocks are classified as Blend, indicating a mixture of growth and value characteristics and cannot be classified as purely growth or value. S&P EPS Estimates Standard & Poor's earnings per share (EPS) estimates reflect analyst projections of future EPS from continuing operations, and generally exclude various items that are viewed as special, non-recurring, or extraordinary. Also, S&P EPS estimates reflect either forecasts of S&P equity analysts; or, the consensus (average) EPS estimate, which are independently compiled by Capital IQ, a data provider to Standard & Poor's Equity Research. Among the items typically excluded from EPS estimates are asset sale gains; impairment, restructuring or merger-related charges; legal and insurance settlements; in process research and development expenses; gains or losses on the extinguishment of debt; the cumulative effect of accounting changes; and earnings related to operations that have been classified by the company as discontinued. The inclusion of some items, such as stock option expense and recurring types of other charges, may vary, and depend on such factors as industry practice, analyst judgment, and the extent to which some types of data is disclosed by companies. S&P Core Earnings Standard & Poor's Core Earnings is a uniform methodology for adjusting operating earnings by focusing on a company's after-tax earnings generated from its principal businesses. Included in the Standard & Poor's definition are employee stock option grant expenses, pension costs, restructuring charges from ongoing operations, write-downs of depreciable or amortizable operating assets, purchased research and development, M&A related expenses and unrealized gains/losses from hedging activities. Excluded from the definition are pension gains, impairment of goodwill charges, gains or losses from asset sales, reversal of prior-year charges and provision from litigation or insurance settlements. Qualitative Risk Assessment The S&P equity analysts view of a given companys operational risk, or the risk of a firms ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a companys operations, as opposed to risk and volatility measures associated with share prices. Quantitative Evaluations In contrast to our qualitative STARS recommendations, which are assigned by S&P analysts, the quantitative evaluations described below are derived from proprietary arithmetic models. These computer-driven evaluations may at times contradict an analysts qualitative assessment of a stock. One primary reason for this is that different measures are used to determine each. For instance, when designating STARS, S&P analysts assess many factors that cannot be reflected in a model, such as risks and opportunities, management changes, recent competitive shifts, patent expiration, litigation risk, etc. S&P Quality Ranking Growth and stability of earnings and dividends are deemed key elements in establishing S&Ps Quality Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. The range of scores in the array of this sample has been aligned with the following ladder of rankings: A+ A AB+ NR Highest High Above Average Average Not Ranked B BC D Below Average Lower Lowest In Reorganization as an indicator of potential medium-to-long term return and as a caution against downside risk. The measure takes into account variables such as technical indicators, earnings estimates, liquidity, financial ratios and selected S&P proprietary measures. S&P's IQ Rationale: Apache Corp Proprietary S&P Measures Technical Indicators Liquidity/Volatility Measures Quantitative Measures IQ Total Raw Score 42 21 7 59 129 Max Value 115 40 20 75 250

Volatility Rates the volatility of the stocks price over the past year. Technical Evaluation In researching the past market history of prices and trading volume for each company, S&Ps computer models apply special technical methods and formulas to identify and project price trends for the stock. Relative Strength Rank Shows, on a scale of 1 to 99, how the stock has performed versus all other companies in S&Ps universe on a rolling 13-week basis. Global Industry Classification Standard (GICS) An industry classification standard, developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). GICS is currently comprised of 10 Sectors, 24 Industry Groups, 68 Industries, and 154 Sub-Industries. S&P Issuer Credit Rating A Standard & Poors Issuer Credit Rating is a current opinion of an obligors overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligors capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation, as it does not take into account the nature of and provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. In addition, it does not take into account the creditworthiness of the guarantors, insurers, or other forms of credit enhancement on the obligation. The Issuer Credit Rating is not a recommendation to purchase, sell, or hold a financial obligation issued by an obligor, as it does not comment on market price or suitability for a particular investor. Issuer Credit Ratings are based on current information furnished by obligors or obtained by Standard & Poors from other sources it considers reliable. Standard & Poors does not perform an audit in connection with any Issuer Credit Rating and may, on occasion, rely on unaudited financial information. Issuer Credit Ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Exchange Type ASE - American Stock Exchange; NNM - Nasdaq National Market; NSC - Nasdaq SmallCap; NYSE - New York Stock Exchange; BB - OTC Bulletin Board; OT Over-the-Counter; TO - Toronto Stock Exchange. S&P Equity Research Services Standard & Poors Equity Research Services U.S. includes Standard & Poors Investment Advisory Services LLC; Standard & Poors Equity Research Services Europe includes McGraw-Hill Financial Research Europe Limited trading as Standard & Poors; Standard & Poors Equity Research Services Asia includes Standard & Poors LLCs offices in Singapore, Standard & Poors Investment Advisory Services (HK) Limited in Hong Kong, Standard & Poors Malaysia Sdn Bhd, and Standard & Poors Information Services (Australia) Pty Ltd.

S&P Fair Value Rank Using S&P's exclusive proprietary quantitative model, stocks are ranked in one of five groups, ranging from Group 5, listing the most undervalued stocks, to Group 1, the most overvalued issues. Group 5 stocks are expected to generally outperform all others. A positive (+) or negative (-) Timing Index is placed next to the Fair Value ranking to further aid the selection process. A stock with a (+) added to the Fair Value Rank simply means that this stock has a somewhat better chance to outperform other stocks with the same Fair Value Rank. A stock with a (-) has a somewhat lesser chance to outperform other stocks with the same Fair Value Rank. The Fair Value rankings imply the following: 5-Stock is significantly undervalued; 4-Stock is moderately undervalued; 3-Stock is fairly valued; 2-Stock is modestly overvalued; 1-Stock is significantly overvalued. S&P Fair Value Calculation The price at which a stock should trade at, according to S&P's proprietary quantitative model that incorporates both actual and estimated variables (as opposed to only actual variables in the case of S&P Quality Ranking). Relying heavily on a company's actual return on equity, the S&P Fair Value model places a value on a security based on placing a formula-derived price-to-book multiple on a company's consensus earnings per share estimate. Insider Activity Gives an insight as to insider sentiment by showing whether directors, officers and key employees who have proprietary information not available to the general public, are buying or selling the companys stock during the most recent six months. Funds From Operations FFO FFO is Funds from Operations and equal to a REIT's net income, excluding gains or losses from sales of property, plus real estate depreciation. Investability Quotient (IQ) The IQ is a measure of investment desirability. It serves

Redistribution or reproduction is prohibited without written permission. Copyright 2011 Standard & Poor's Financial Services LLC. STANDARD & POORS, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poors Financial Services LLC.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Abbreviations Used in S&P Equity Research Reports CAGR- Compound Annual Growth Rate; CAPEX- Capital Expenditures; CY- Calendar Year; DCF- Discounted Cash Flow; EBIT- Earnings Before Interest and Taxes; EBITDAEarnings Before Interest, Taxes, Depreciation and Amortization; EPS- Earnings Per Share; EV- Enterprise Value; FCF- Free Cash Flow; FFO- Funds From Operations; FY- Fiscal Year; P/E- Price/Earnings ; PEG RatioP/E-to-Growth Ratio; PV- Present Value; R&D- Research & Development; ROE- Return on Equity; ROI- Return on Investment; ROIC- Return on Invested Capital; ROAReturn on Assets; SG&A- Selling, General & Administrative Expenses; WACC- Weighted Average Cost of Capital Dividends on American Depository Receipts (ADRs) and American Depository Shares (ADSs) are net of taxes (paid in the country of origin).

555551-STARS (Strong Sell): Total return is


expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis. Relevant benchmarks: In North America the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index. For All Regions: All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this research report. S&P Global Quantitative Recommendations Distribution In Europe: As of September 30, 2011, Standard & Poor's Quantitative Services Europe recommended 47.0% of issuers with buy recommendations, 20.0% with hold recommendations and 32.0% with sell recommendations. In Asia: As of September 30, 2011, Standard & Poor's Quantitative Services Asia recommended 48.4% of issuers with buy recommendations, 21.0% with hold recommendations and 30.0% with sell recommendations. Globally: As of September 30, 2011, Standard & Poor's Quantitative Services globally recommended 44.0% of issuers with buy recommendations, 20.0% with hold recommendations and 34.0% with sell recommendations. Additional information is available upon request.

and one of its affiliates is not a recommendation to buy, sell, or hold such investment or security, nor is it considered to be investment advice. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address. S&P and/or one of its affiliates has performed services for and received compensation from this company during the past twelve months.

Required Disclosures
In contrast to the qualitative STARS recommendations covered in this report, which are determined and assigned by S&P equity analysts, S&Ps quantitative evaluations are derived from S&Ps proprietary Fair Value quantitative model. In particular, the Fair Value Ranking methodology is a relative ranking methodology, whereas the STARS methodology is not. Because the Fair Value model and the STARS methodology reflect different criteria, assumptions and analytical methods, quantitative evaluations may at times differ from (or even contradict) an equity analysts STARS recommendations. As a quantitative model, Fair Value relies on history and consensus estimates and does not introduce an element of subjectivity as can be the case with equity analysts in assigning STARS recommendations. S&P Global STARS Distribution

Disclaimers
With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. With respect to reports issued to clients in German and in the case of inconsistencies between the English and German version of a report, the English version prevails. Neither S&P nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not necessarily indicative of future results.

Other Disclosures
In North America: As of September 30, 2011, research analysts at Standard & Poor's Equity Research Services North America recommended 42.2% of issuers with buy recommendations, 54.2% with hold recommendations and 3.6% with sell recommendations. In Europe: As of September 30, 2011, research analysts at Standard & Poor's Equity Research Services Europe recommended 34.4% of issuers with buy recommendations, 49.4% with hold recommendations and 16.2% with sell recommendations. In Asia: As of September 30, 2011, research analysts at Standard & Poor's Equity Research Services Asia recommended 48.4% of issuers with buy recommendations, 45.7% with hold recommendations and 5.9% with sell recommendations. Globally: As of September 30, 2011, research analysts at Standard & Poor's Equity Research Services globally recommended 41.5% of issuers with buy recommendations, 52.6% with hold recommendations and 5.9% with sell recommendations. This report has been prepared and issued by Standard & Poor's and/or one of its affiliates. In the United States, research reports are prepared by Standard & Poor's Investment Advisory Services LLC ("SPIAS"). In the United States, research reports are issued by Standard & Poor's ("S&P"); in the United Kingdom by McGraw-Hill Financial Research Europe Limited, which is authorized and regulated by the Financial Services Authority and trades as Standard & Poor's; in Hong Kong by Standard & Poor's Investment Advisory Services (HK) Limited, which is regulated by the Hong Kong Securities Futures Commission; in Singapore by Standard & Poor's LLC, which is regulated by the Monetary Authority of Singapore; in Malaysia by Standard & Poor's Malaysia Sdn Bhd ("S&PM"), which is regulated by the Securities Commission; in Australia by Standard & Poor's Information Services (Australia) Pty Ltd ("SPIS"), which is regulated by the Australian Securities & Investments Commission; and in Korea by SPIAS, which is also registered in Korea as a cross-border investment advisory company. The research and analytical services performed by SPIAS, McGraw-Hill Financial Research Europe Limited, S&PM, and SPIS are each conducted separately from any other analytical activity of Standard & Poor's. Standard & Poor's or an affiliate may license certain intellectual property or provide pricing or other services to, or otherwise have a financial interest in, certain issuers of securities, including exchange-traded investments whose investment objective is to substantially replicate the returns of a proprietary Standard & Poor's index, such as the S&P 500. In cases where Standard & Poor's or an affiliate is paid fees that are tied to the amount of assets that are invested in the fund or the volume of trading activity in the fund, investment in the fund will generally result in Standard & Poor's or an affiliate earning compensation in addition to the subscription fees or other compensation for services rendered by Standard & Poor's. A reference to a particular investment or security by Standard & Poor's

Standard & Poors, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness or adequacy of this material, and S&P Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of the information provided by the S&P Parties. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages. Capital IQ is a business of Standard & Poor's.

55555 5-STARS (Strong Buy): Total return is


expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.

55555 4-STARS (Buy): Total return is expected to


outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.

55555 3-STARS (Hold): Total return is expected to


closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.

55555 2-STARS (Sell): Total return is expected to


underperform the total return of a relevant benchmark over the coming 12 months, and the share price not anticipated to show a gain.

Ratings from Standard & Poors Ratings Services are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. Standard & Poors assumes no obligation to update its opinions following publication in any form or format. Standard & Poors ratings should not be relied on and are not substitutes for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. Standard & Poors rating opinions do not address the suitability of any security. Standard & Poors does not act as a fiduciary. While Standard & Poors has obtained information from sources it believes to be reliable, Standard & Poors does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.

Redistribution or reproduction is prohibited without written permission. Copyright 2011 Standard & Poor's Financial Services LLC. STANDARD & POORS, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poors Financial Services LLC.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
Standard & Poors keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of Standard & Poors may have information that is not available to other Standard & Poors business units. Standard & Poors has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. objectives, financial situation or particular needs of any person in receipt of the recommendation, before the person makes a commitment to purchase the investment product. For residents of Malaysia - All queries in relation to this report should be referred to Ching Wah Tam. For residents of Indonesia - This research report does not constitute an offering document and it should not be construed as an offer of securities in Indonesia, and that any such securities will only be offered or sold through a financial institution. For residents of the Philippines - The securities being offered or sold have not been registered with the Securities and Exchange Commission under the Securities Regulation Code of the Philippines. Any future offer or sale thereof is subject to registration requirements under the Code unless such offer or sale qualifies as an exempt transaction. U.S. STARS Cumulative Model Performance Hypothetical Growth Due to Price Appreciation of $100 For the Period 12/31/1986 through 09/30/2011 made at the closing price of the day that the deletion is made. Performance was calculated from inception through March 31, 2003 on a monthly basis. Thereafter, performance is calculated daily. Equities in each STARS category will change over time, and some or all of the equities that received STARS rankings during the time period shown may not have maintained their STARS ranking during the entire period. The model performance does not consider taxes and brokerage commissions, nor does it reflect the deduction of any advisory or other fees charged by advisors or other parties that investors will incur when their accounts are managed in accordance with the models. The imposition of these fees and charges would cause actual performance to be lower than the performance shown. For example, if a model returned 10 percent on a $100,000 investment for a 12-month period (or $10,000) and an annual asset-based fee of 1.5 percent were imposed at the end of the period (or $1,650), the net return would be 8.35 percent (or $8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.1%, a total fee of $5,375 and a cumulative net return of 27.2% (or $27,200). Fees deducted on a frequency other than annual would result in a different cumulative net return in the preceding example. The Standard & Poors 500 index is the benchmark for U.S. STARS. The S&P 500 index is calculated in U.S. dollars and does not take into account the reinvestment of dividends. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The S&P 500 index includes a different number of constituents and has different risk characteristics than the STARS equities. Some of the STARS equities may have been included in the S&P 500 index for some (but not necessarily all) of the period covered in the chart, and some such equities may not have been included at all. The S&P 500 excludes ADRs and ADSs. The methodology for calculating the return of the S&P 500 index differs from the methodology of calculating the return for STARS. Past performance of the S&P 500 index is no guarantee of future performance. An investment based upon the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investors shares may be worth more or less than their original cost. For residents of Australia This report is distributed by Standard & Poors Information Services (Australia) Pty Ltd ("SPIS") in Australia. The entirety of this report is approved by Barry King, who has reviewed and authorised its content as at the date of publication. Any express or implied opinion contained in this report is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s) alone. The information in this report has not been prepared for use by retail investors and has been prepared without taking account of any particular person's financial or investment objectives, financial situation or needs. Before acting on any advice, any person using the advice should consider its

Standard & Poors Ratings Services did not participate in the development of this report. Standard & Poors may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. Standard & Poors reserves the right to disseminate its opinions and analyses. Standard & Poors public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via Standard & Poors publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

S&P 500 2,400

5 STARS

4 STARS

3 STARS

2 STARS

1 STARS

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investors currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material is not intended for any specific investor and does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.

1,600

800

0 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

This document does not constitute an offer of services in jurisdictions where Standard & Poors or its affiliates do not have the necessary licenses. For residents of the U.K. - This report is only directed at and should only be relied on by persons outside of the United Kingdom or persons who are inside the United Kingdom and who have professional experience in matters relating to investments or who are high net worth persons, as defined in Article 19(5) or Article 49(2) (a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, respectively. For residents of Singapore - Anything herein that may be construed as a recommendation is intended for general circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Advice should be sought from a financial adviser regarding the suitability of an investment, taking into account the specific investment

The performance above represents only the results of Standard & Poors model portfolios. Model performance has inherent limitations. Standard & Poors maintains the models and calculates the model performance shown, but does not manage actual assets. The U.S. STARS model performance chart is only an illustration of Standard & Poors (S&P) research; it shows how U.S. common stocks, ADRs (American Depositary Receipts) and ADSs (American Depositary Shares), collectively equities, that received particular STARS rankings performed. STARS categories are models only; they are not collective investment funds. The STARS performance does not show how any actual portfolio has performed. STARS model performance does not represent the results of actual trading of investor assets. Thus, the model performance shown does not reflect the impact that material economic and market factors might have had on decision-making if actual investor money had been managed. Performance is calculated using a time-weighted rate of return. While model performance for some or all STARS categories performed better than the S&P 500 for the period shown, the performance during any shorter period may not have, and there is no assurance that they will perform better than the S&P 500 in the future. STARS does not take into account any particular investment objective, financial situation or need and is not intended as an investment recommendation or strategy. Investments based on the STARS methodology may lose money. High returns are not necessarily the norm and there is no assurance that they can be sustained. Past model performance of STARS is no guarantee of future performance. For model performance calculation purposes, the equities within each STARS category at December 31, 1986 were equally weighted. Thereafter, additions to the composition of the equities in each STARS category are made at the average value of the STARS category at the preceding month end with no rebalancing. Deletions are

Redistribution or reproduction is prohibited without written permission. Copyright 2011 Standard & Poor's Financial Services LLC. STANDARD & POORS, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poors Financial Services LLC.

Stock Report | October 22, 2011 | NYS Symbol: APA

Apache Corp
appropriateness having regard to their own or their clients' objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product and consider the statement before making any decision or recommendation about whether to acquire the product. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any adviser and any such adviser must accordingly make their own assessment taking into account an individual's particular circumstances. SPIS holds an Australian Financial Services Licence Number 258896. Please refer to the SPIS Financial Services Guide for more information at www.fundsinsights.com.au.

Redistribution or reproduction is prohibited without written permission. Copyright 2011 Standard & Poor's Financial Services LLC. STANDARD & POORS, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poors Financial Services LLC.

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