Apache Corporation (APA)’s Performance Declining

2). They have a $10.5 billion capital expenditure this year but won’t show any real returns until 2014. This represents roughly 20% of their total operating budget.

3). In an effort to repay debt, they are selling $2 billion worth of assets with a shift towards providing value to investors.

There are signs of good things to come, though. The capital expenditures can yield future production next year. Also, the sale of assets to pay down debt and to focus on future value is a positive sign from management. They have not announced what assets are being sold, though. The $16 billion in recent acquisitions by Apache may yield future earnings as well.

Right now, the company may be overpriced based on current earnings. Earnings are expected to increase in the next two years. Until there is solid evidence, hold off on buying this once-great stock.

The article Apache’s Performance Declining originally appeared on Fool.com and is written by Austin Higgins.

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