U.S. energy firm
) declared that its board of directors has approved an additional
buyback of 10 million shares, which will increase the share
repurchase plan of the company to 40 million.
Apache has been restructuring its portfolio with a focus on more
profitable and high-growth, liquid-rich resources. Hence,
management believes that repurchase of share will be a good
investment at the current level. Moreover, the buyback program will
reduce the number of outstanding shares, which will directly
increase the earnings per share of the company.
Apache revealed that it spent roughly $2.1 billion to repurchase
24.3 million shares under its previous 30 million share buyback
Houston, TX-based Apache is one of the world's leading independent
energy companies engaged in the exploration, development and
production of natural gas, crude oil and natural gas liquids. On
May 8, 2014, the company reported better-than-expected
first-quarter 2014 results amid higher
. Earnings per share - excluding one-time items - came in at $1.78,
well above the Zacks Consensus Estimate of $1.61.
However, Apache's long-term production and reserve growth primarily
depends on its acquire-and-exploit model. Apache might find it
difficult to complete accretive transactions in the future, which
could negatively impact its growth rate.
As a result, Apache currently carries a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three
Meanwhile one can consider better ranked players in the same
Athlon Energy Inc.
Callon Petroleum Company
). All the stocks sport a Zacks Rank #1 (Strong Buy).
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APACHE CORP (APA): Free Stock Analysis Report
ATHLON ENERGY (ATHL): Free Stock Analysis
CALLON PETE-DEL (CPE): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
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