Benchmark reiterated its Buy rating on APA Corp (NASDAQ:APA) and kept a $33.00 price target, according to a research note released Monday. That target aligns closely with InvestingPro's Fair Value assessment referenced in the note, which suggests the stock remains undervalued. APA shares have advanced strongly, producing a 46% price return over the past six months.
In its update, Benchmark trimmed its fourth-quarter EBITDA estimate for APA to $1.168 billion from $1.328 billion, attributing the reduction to mark-to-market movements in commodity prices. Despite the lower EBITDA projection, the firm highlighted that APA pre-reported its largest gas marketing gains of the year, noting that Waha prices faced difficulty reaching break-even levels and that APA’s marketing performance helped mitigate downside pressure.
The research note detailed that APA curtailed roughly 23,000 barrels of oil equivalent per day (boepd) in the United States during the period under review. Benchmark quantified that curtailment as about 8% of APA’s third-quarter domestic volumes, reflecting a sizeable temporary pullback in output.
Benchmark also cautioned that APA’s Egyptian production volumes are expected to decline sequentially because of a brief pipeline outage. The note, however, indicated that this short interruption should not have a material effect on the company’s cash flows.
APA Corp, formerly known as Apache Corporation, operates as an independent energy company focused on exploration, development and production of natural gas, crude oil and natural gas liquids.
Alongside Benchmark’s note, the company has been the subject of several analyst and strategic developments. Raymond James reiterated an Outperform rating on APA and maintained a $31.00 price target while noting reports of potential merger discussions with Repsol. RBC Capital raised its price target to $26, citing improved operational consistency. Wolfe Research lowered its price target to $35 but kept an Outperform rating and described APA as undervalued. William Blair initiated coverage with an Outperform rating and a $32 price target, commenting on APA’s broad asset base.
Operationally, APA has reported progress on cost reductions, achieving $300 million in savings year-to-date and projecting $350 million in run-rate savings by the end of 2025. In a separate corporate development, investment firm Stonepeak reached an agreement to acquire the Australian gas network Allgas from APA Group and other shareholders, with the transaction expected to close in 2026.
The collection of analyst views and corporate moves underscores a period in which APA is balancing near-term price-related pressures with improvements in gas marketing, cost structure and strategic asset transactions. Benchmark’s note frames the company’s recent gas marketing gains as a counterweight to mark-to-market-driven EBITDA adjustments and highlights continued focus on cash flow resilience even where production has been temporarily curtailed or disrupted.
Investors following APA will likely weigh the mix of strong share-price performance over the past six months, the revised EBITDA outlook and the sensitivity of near-term volumes to curtailments and short-lived infrastructure outages against the company’s stated cost-savings trajectory and ongoing analyst interest.