Apache (APA) is one of the largest independent oil and gas names in the United States, with approximately 3 billion barrels of oil equivalent in proven reserves and a market cap of just over $32 billion.
It also counts the prolific oilman as a new shareholder. BP Capital added about 120,000 shares of the firm during Q1 2013.
Pickens could attracted to APA’s long-term value. The company has made a name for itself for exploiting new and unconventional resources. However, recently Apache has run into some trouble with some of these assets — specifically, those in Egypt. Approximately 10% of the E&P firm’s reserves and about 20% of its production are located in the nation, and fresh stability and security concerns in the Middle East have weighed heavily on Apache shares.
However, those concerns are providing a big-time value as overall production at the firm continues to grow.
Analyst earnings estimates suggest that Apache has more of an upside than its larger peers. Yet, APA shares can be had for a forward P/E of just 9, less than the double-digit valuations you’ll see at rivals such as Exxon Mobil (XOM).