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
WACCMarket 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)
 WACCBook     8.20%     8.88%
Enterprise value
EVMarket  24,190 31,590 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook     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.
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

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/FCFOPS

\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%

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