Apache Corp.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Wells Fargo Securities	David Tameron	david.tameron@wellsfargo.com
BMO Capital Markets	Phillip Jungwirth	phillip.jungwirth@bmo.com
Johnson Rice & Company	Charles Meade	cmeade@jrco.com
Evercore ISI	Stephen Richardson	stephen.richardson@evercoreisi.com
Scotia Howard Weil	Peter Kissel	peter.kissel@scotiabank.com
Raymond James	John Freeman	john.freeman@raymondjames.com
Deutsche Bank Research	Ryan Todd	ryan.todd@db.com
Wolfe Research	Paul Sankey	psankey@wolferesearch.com
RBC Capital Markets	Scott Hanold	scott.hanold@rbccm.com
Atlantic Equities	Barry MacCarthy	b.maccarthy@atlantic-equities.com
Capital One Securities	Richard Tullis	richard.tullis@capitalone.com
Credit Suisse	Edward Westlake	edward.westlake@credit-suisse.com
Piper Jaffray	Pearce Hammond	pearce.w.hammond@simmonspjc.com
Alembic Global Advisors	James Sullivan	james.sullivan@alembicglobal.com
IBERIA Capital Partners	Eric Fox	eric.fox@iberiabank.com
Cowen & Company	Charles Robertson	charles.robertson@cowen.com
Jefferies	Jonathan D. Wolff	jwolff@jefferies.com
Nomura Research	Lloyd Byrne	lloyd.byrne@nomura.com
Seaport Global Securities	Michael Kelly	mkelly@seaportglobal.com
KLR Group	Gail Nicholson	gn@klrgroup.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	(337)	(140)	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	(2,194)	481	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	53	103	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	17,001	20,676	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	-1.98%	-0.68%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	(24,717)	6,802	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	7,343.14%	-4,849.91%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	1.49%	3.80%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.20%	8.88%
Enterprise value	EV_Market	24,190	31,590	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	24,121	31,250
Long-Run Growth	g = IR x ROIC	-145.39%	32.90%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	-6.20%	-3.07%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	110.99%	105.57%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	3.79	5.89	9.68%	12.28%	8.58%	9.12%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	6.71	10.66	9.68%	12.28%	8.58%	9.12%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	-71.87	-225.24	9.68%	12.28%	8.58%	9.12%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	-11.03	65.67	9.68%	12.28%	8.58%	9.12%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	-61.09	-191.45	9.68%	12.28%	8.58%	9.12%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.42	1.53	9.68%	12.28%	8.58%	9.12%