U.S. energy firm
) increased its quarterly cash dividend payment by 18% to 20
cents per share, up from the last payout of 17 cents per share.
The new dividend will be paid on May 22, 2013, to shareholders of
record on Apr 22, 2013.
APACHE CORP (APA): Free Stock Analysis Report
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CABOT OIL & GAS (COG): Free Stock Analysis
DEVON ENERGY (DVN): Free Stock Analysis
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If the newly announced dividend is maintained for a year, the
annualized dividend payout of the company will be 80 cents per
Based on the closing price of $84.18 as on Feb 12, 2013, the
proposed dividend affirms a yield of around 1%. Apache has a long
and consistent dividend paying record, dating back to 1965. A
steady dividend payout facilitates the long-term strategy of the
company to provide attractive risk-adjusted returns to its
The dividend hike reflects continued strong performance by the
company, backed by good financial position and solid capacity to
generate cash flows for its shareholders. We believe that the
company will be able to generate sufficient revenue in the coming
years, which will likely be backed by strong operating
performances and good management decisions.
Founded in 1954, Houston, Texas-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.
Apache is noted for growing through acquisitions and the
development of existing reserves. Its long-term production growth
visibility improved significantly following the recent
) asset acquisition, the purchase of a portion of
Devon Energy Corporation's
) Gulf of Mexico assets and the deal to acquire Mariner Energy.
These new acreage positions further complement the company's
diversified asset base.
However, the company's long-term production and reserve growth
primarily depend on its acquire-and-exploit model. Apache may
find it difficult to complete accretive transactions in the
future, which could negatively impact its growth rate.
Apache which is scheduled to report its fourth-quarter and full
year 2012 results before the opening bell tomorrow, Feb 14, 2013,
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 months.
In the energy exploration and production space,
Cabot Oil & Gas Corporation
) displays better fundamentals and currently sports a Zacks Rank
#1 (Strong Buy).