APA Corporation Ratifies Production Sharing Contract With Egypt
This article was originally published on TipRanks.com
APA Corporation (NASDAQ:APA), the holding company of hydrocarbon exploration company, Apache Corporation recently revealed the ratification of the company’s production sharing contract with Egypt.
Following the news, shares of the company gained 7.3% during yesterday’s trading session. However, it pared its gains slightly to close at $27.95 during the extended trading session.
With the ratification of the production sharing contract, APA consolidates 90% of gross production into a single concession. Further, it refreshes existing development lease terms for 20 years.
Moreover, with the ratification of the contract, the APA-Sinopec joint venture expects to increase gross capital investment by roughly $235 million in Egypt during 2022.
CEO of APA, John J. Christmann IV, said “This agreement is a win-win for Egypt and the APA-Sinopec Joint Venture. The modernized PSC incentivizes increased investment and production growth and places Egypt at the top of many attractive investment opportunities in APA’s global portfolio. It also reinforces Egypt’s commitment to responsible economic development and public-private partnerships.”
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According to Analyst Ratings, the stock has a Moderate Buy rating based on 7 Buys and 7 Holds. The average APA price target of $34.64 implies upside potential of 23.9% from current levels. Meanwhile, shares have gained 96.8% over the past year.
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