Sunday, May 19, 2019

Apache Corporation Essay

Apache connection was formed in 1954, based on the idea of becoming significant and prosperous in the crude industry. The come with took $250,000 of investor capital, paired it with fierce determination and now Apache Corporation is considered one of the top independent rock inunct color and gas exploration and production companies in the world (Apachecorp.com, 2012). Apache Corporation operates in both domestic and internationalistic markets exploring for, developing, and producing natural gas, crude oil, and natural gas liquids (Apachecorp.com, 2012). On December 31, 2011, the Company had production in the united States, Canada, Egypt, and Australia. Offshore production exists in the United Kingdom, the North Sea, and Argentina. Looking into the future Apache plans to continue to explore new(prenominal) countries for new discoveries and development opportunities (Apachecorp.com, 2012).EnvironmentThe success of any duty depends on the ability to adapt to the surroundings it operates in. As part of the oil and gas industry Apache Corporation operates in a global worry environment known for its competitiveness. The company has shown growth in production cardinal one of the last thirty three twelvemonths and throughout those years change has been a constant companion. Wide swings in oil prices induct become commonplace in the world today, the price of a barrel of oil changes nigh daily. Operating in other countries means that political unrest and changes in government policies must be addressed, as well as oil industry regulations that are constantly evolving. Apache Corporation has withstood the changes in business environment for 57 years and remains committed to successfully embracing the changes yet to come.Technology all over the last 10 years the most significant technological advance for the industry has been the coupling of flat drilling with hydraulic fracturing techniques. This new method allows the development of resources that are tra pped in shale and other areas that have been nearly impossible to mine in the past. Apache Corporation now applies this technology worldwide (Apachecorp.com, 2012). This method is likewise used by nearly all other companies in the industry including the comparison companies Devon and Anadarko.Financial wellnessAccording to the 2011 Apache Corporation Annual Report the company showed a profit for the year and the debt ratio is 0.22. cardinal top competitor Anadarko Petroleum located in San Antonio Texas has a debt ratio of .65 and showed a loss for the 2011 year (Hoovers, 2012). A second top competitor Devon Energy located in Oklahoma City, Oklahoma had a better year in 2011, this company did show a profit and their debt ratio is 0.48 (Hoovers, 2012). Within the gas and oil industry the overall financial status of Apache Corporation is sound. Working in a steep risk industry the production risks are balanced by both geographic diversification and a mix of high and low risk propert ies in the portfolio (Hoovers, 2012).With approximately 3 billion barrels of oil equivalent in reserve Apache Corporation is positioned to maintain their circulating(prenominal) momentum. The natural gas product is change most often at current market prices while the crude oil is marketed directly to co-ordinated marketers and refineries. Contract terms are generally 30 days with automatic renewal until canceler at current market prices which change almost daily (Apachecorp.com, 2012). Apache Corporation has been exploring for and producing oil and gas products for over 50 years. The company has been successful and appears to be a sound investment. In this analysis we have reviewed the business environment, financial health and use of technology for Apache Corporation for the purpose of deciding whether or not to invest in the company.Referenceshttp//www.apachecorp.com/Resources/ transfer/file/investors/Apache_AR_2011.pdf Hoovers. (2012). Retrieved from http//www.hoovers.com/com pany/Apache_Corporation/rfrtif-1-1njea3.htmlHoovers. (2012). Retrieved from http//www.hoovers.com/company/Devon_Energy_Corporation/rrxkxi-1-1njea5.html

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.