Apache Corp (APA)

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Apache rated Hold at Stifel until investors convinced of Alpine High quality

Apache (APA -0.5%) is initiated with a Hold rating and $54 price target at Stifel, which sees shares continuing to trade at a discount to peers until investors are convinced of the value of its

Alpine High resources in the Delaware Basin, which will require optimized wells and a longer-dated production history.
The firm estimates the Alpine High project is worth $18/share, and is encouraged by the tests APA has conducted done so far.

Outside of Alpine High, Stifel says APA’s Permian wells are improving in both the Delaware and Midland basins, with the company’s peak IP-90 rates improving each of the past three years and ranking among the industry’s best in the Southern Delaware Basin in 2016.