High Oil Prices Both Help And Hurt Apache

Article Excerpt

APACHE CORP. $133 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 333.6 million; Market cap: $44.4 billion; WSSF Rating: Average) explores for and produces oil and natural gas, mainly in North America. The company avoids long-term supply or hedging contracts, so it can sell its oil at rising current prices. In the three months ended March 31, 2008, earnings per share jumped to $2.99 from $1.48 a year earlier. These figures exclude unusual items. Cash flow per share rose 53.6%, to $5.53 from $3.60. Revenue grew 60.0%, to $3.2 billion from $2.0 billion. However, Apache relies on acquisitions to replenish its reserves. Higher oil prices could make future acquisitions more expensive. Apache is a hold. hold…