Apache Case
Team 1
Table of Contents
Executive Summary
Oil & Gas Industry Analysis
Apache Managing Risk Analysis
Porter 5 Forces Model
Conclusion
Appendix
Executive Summary
Apache Corporation is one of the world largest independent energy companies in the world, and is headquartered in Houston, TX. Apache has gas exploration and production company with operations in six countries, divided into seven operating regions which are Canada, Egypt, Australia, offshore the United Kingdom in the North Sea and Argentina and also to include the United States. Apache was formed in 1954 in Minneapolis, Minnesota by Truman Anderson, Raymond Plank, and Charles Arnao.
In 1956, Apache was one of the first firms to register a drilling program with the U.S. Securities and Exchange Commission. Apaches mission is to grow a profitable upstream oil and gas company for the long term benefit of its shareholders. In its early years Apache adopted the focus to finding domestic oil and domestic reserves.
The Company seeks to have long term viewpoints that keep them in the competitive range; there are several dimensions that they live up to with the following core principles: own a balanced portfolio of core assets; maintain financial flexibility and a strong balance sheet and optimize rates of return, earnings and cash flow. Apache owns a plethora of assets in core areas that provide opportunities for growth through drilling and supplemented by occasional strategic acquisitions. For the last two decades, Apache has managed to assemble a large acreage position and production base outside the United States that provides additional geologic and geographic opportunities, diversifying risk, and provides exposure to larger reserve targets, which fuel production and reserve growth.
Currently, the company has recent stock price of $98.72. Apache has a market cap of $38 billion and an Enterprise Value of $48.6 billion. Reported in their latest
Table of Contents
Executive Summary
Oil & Gas Industry Analysis
Apache Managing Risk Analysis
Porter 5 Forces Model
Conclusion
Appendix
Executive Summary
Apache Corporation is one of the world largest independent energy companies in the world, and is headquartered in Houston, TX. Apache has gas exploration and production company with operations in six countries, divided into seven operating regions which are Canada, Egypt, Australia, offshore the United Kingdom in the North Sea and Argentina and also to include the United States. Apache was formed in 1954 in Minneapolis, Minnesota by Truman Anderson, Raymond Plank, and Charles Arnao.
In 1956, Apache was one of the first firms to register a drilling program with the U.S. Securities and Exchange Commission. Apaches mission is to grow a profitable upstream oil and gas company for the long term benefit of its shareholders. In its early years Apache adopted the focus to finding domestic oil and domestic reserves.
The Company seeks to have long term viewpoints that keep them in the competitive range; there are several dimensions that they live up to with the following core principles: own a balanced portfolio of core assets; maintain financial flexibility and a strong balance sheet and optimize rates of return, earnings and cash flow. Apache owns a plethora of assets in core areas that provide opportunities for growth through drilling and supplemented by occasional strategic acquisitions. For the last two decades, Apache has managed to assemble a large acreage position and production base outside the United States that provides additional geologic and geographic opportunities, diversifying risk, and provides exposure to larger reserve targets, which fuel production and reserve growth.
Currently, the company has recent stock price of $98.72. Apache has a market cap of $38 billion and an Enterprise Value of $48.6 billion. Reported in their latest