TacticScaleWhat APA Does & How It Makes Money (APA)
Updated October 2026 · reflects APA's latest reported financials
Independent oil and gas producer operating in the US, Egypt, North Sea. APA earns revenue by selling the crude oil, natural gas, and natural gas liquids it produces, so its income rises and falls with commodity prices and production volumes.
How APA makes money
APA earns revenue by selling the crude oil, natural gas, and natural gas liquids it produces, so its income rises and falls with commodity prices and production volumes.
What APA does
APA Corporation is a Houston-based independent energy company, incorporated in 1954, that explores for, develops, and produces crude oil, natural gas, and natural gas liquids. It has producing operations in the United States, Egypt, and the North Sea, which gives it a geographically diversified portfolio compared with purely domestic producers. Beyond its producing assets, APA is doing exploration and appraisal work in Suriname and holds interests in projects in Uruguay and other international locations, which could provide future growth. As an upstream producer, its results depend mainly on oil and gas prices and on how much it can produce.
Products & services
- Crude oil
- Natural gas
- Natural gas liquids (NGLs)
- US onshore oil and gas production
- Egypt oil and gas operations
- North Sea offshore production
What is APA worth?
On an owner-earnings DCF, APA's most-likely value is about $85 versus a recent price near $46 (86% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$64) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $46 is below even the no-growth floor ($64); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -4.7%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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