Apache Corp (APA)

[Timothy Smith]

Apache is currently trading around $89, with a price to book of 1.2 and a forward price to earnings of 7.6.

By comparison, Devon is currently trading around $59, with a price to book of 1.1 and a forward price to earnings of 8.7.

Chesapeake is trading around $19 with a price to book of 0.9 and a forward price to earnings of 10.1.

Oxy is trading around $89 with a price to book of 1.1 and a forward price to earnings of 10.1.

EOG, the segment leader since its second quarter earnings release, is continuing to surge ahead, now trading around $111 with a price to book of 2.3 and a forward price to earnings of 17.2.

Although Apache's second quarter earnings were weak almost across the board, its underlying production and assets remain strong. With a debt to equity ratio of 0.3, Apache is inherently able to maneuver if prices remain weak and it needs to seek a capital infusion for a greater push towards oil.

Its multinational natural gas projects will also help it recover, since although U.S. natural gas prices are flirting below the cost of production in some areas, internationally prices are stable, especially in the Asia Pacific. These concerns are leading Apache to trade at a discount, which makes it an excellent buy side opportunity.