Apache Corporation (APA): This Cheap Energy Company Has a Positive Outlook

In 2012, Exxon Mobil Corporation (NYSE:XOM) had around 115% in reserves replacement, delivering $44.9 billion in earnings with ROCE of 25.4%. There seems to be a lot of potential for ExxonMobil in the long run with its huge resource base. Apart from 25 billion BOE in proved reserves, it is estimated to have 27 billion BOE of resources in design and development stages and an additional 35 billion BOE in future development, including shale gas, tight gas, and heavy oil sands. The company is positioned for long-term growth with 31 major project startups in the period 2012-2017, including Angola Satellites Deepwater, Papa New Guinea LNG, and Kearl Oil Sands.

Income investors might like Exxon Mobil Corporation (NYSE:XOM) the best with its highest dividend yield at 2.80% while Apache Corporation (NYSE:APA)and Anadarko Petroleum Corporation (NYSE:APC) only pay shareholders dividend yields of 0.90% and 0.40%, respectively.

My Foolish take

Oil investors should really consider Apache due to its lowest earnings valuation, strong balance sheet, and the potential asset sales. If it could divest $4 billion in assets this year, Apache Corporation (NYSE:APA) could drive its EPS higher, thanks to the potential share repurchases and debt reduction.

Anh HOANG has no position in any stocks mentioned. The Motley Fool owns shares of Apache.

The article This Cheap Energy Company Has a Positive Outlook originally appeared on Fool.com.

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