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APA Corporation (APA)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$28.38 - $40.60$34.37
Multi-Stage$46.53 - $51.14$48.79
Blended Fair Value$41.58
Current Price$24.28
Upside71.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.25%-0.33%0.970.850.570.140.341.031.051.041.041.04
YoY Growth--14.61%48.79%298.08%-57.72%-67.29%-1.57%0.53%0.26%0.53%3.29%
Dividend Yield--4.61%2.39%1.58%0.35%1.89%24.71%3.00%2.71%2.03%2.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,509.00
(-) Cash Dividends Paid (M)364.00
(=) Cash Retained (M)1,145.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)301.80188.63113.18
Cash Retained (M)1,145.001,145.001,145.00
(-) Cash Required (M)-301.80-188.63-113.18
(=) Excess Retained (M)843.20956.381,031.83
(/) Shares Outstanding (M)364.00364.00364.00
(=) Excess Retained per Share2.322.632.83
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share2.322.632.83
(=) Adjusted Dividend3.323.633.83
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.33%-1.33%-0.33%
Fair Value$28.38$34.37$40.60
Upside / Downside16.88%41.55%67.21%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,509.001,488.871,469.021,449.421,430.091,411.021,453.35
Payout Ratio24.12%37.30%50.47%63.65%76.82%90.00%92.50%
Projected Dividends (M)364.00555.31741.46922.541,098.661,269.921,344.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.33%-1.33%-0.33%
Year 1 PV (M)503.93509.09514.25
Year 2 PV (M)610.59623.16635.85
Year 3 PV (M)689.41710.80732.64
Year 4 PV (M)745.05776.04807.98
Year 5 PV (M)781.50822.34864.86
PV of Terminal Value (M)13,606.9814,318.0015,058.44
Equity Value (M)16,937.4617,759.4218,614.02
Shares Outstanding (M)364.00364.00364.00
Fair Value$46.53$48.79$51.14
Upside / Downside91.65%100.95%110.62%

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