APA Corp. downgraded to In Line from Outperform at Evercore ISI

Evercore ISI downgraded APA Corp. to In Line from Outperform with a price target of $39, down from $52. Filling a near-term portfolio gap via an acquisition while Egypt has disappointed and the North Sea is likely more an ongoing question of liability management has created little incremental value, the analyst tells investors in a research note. Further, international natural gas markets have proven less of a tailwind than hoped entering 2024, says the firm. Evercore believes initial results of APA-drilled and completed wells on Callon Petroleum acreage and besting initial guidance for the second half of 2024 “would go some way towards improving credibility,” but are likely Q4 and first half of 2025 events.