Investors hoping to strike a gusher should look to larger, independent energy stocks for long-term profits. The key to success for these big firms is that they’re actually getting smaller. The outdated integrated model has stalled, and many energy stocks are now getting “lean and mean” to drive shareholder value.

And there’s one independent energy stock that’s really taking the “smaller is better” mantra to heart: Apache (APA).

APA continues to find major amounts of oil — both internationally and in North America’s richest shale basins. That in itself makes APA stock a great pick for your portfolio. After all, much of the larger members of the energy sector continue to struggle on that front. However, there are still other ways to win with Apache. Namely, through a potential repositioning and spinoff.

All in all, when it comes to larger independent energy companies, APA stock has the goods to keep portfolios growing for years to come.

Multiple Opportunities for APA Stock

Historically, Apache made its mark as an energy stocks leader by focusing on North American assets in the Gulf of Mexico. APA was renowned for buying older wells and pulling out every last drop of oil from these assets. Well, it seems that Apache may be going back to its roots — sort of.

As we’ve seen with numerous energy stocks such as ConocoPhillips (COP) and Marathon (MPC), bigger isn’t always better. The integrated model of holding all sorts of up-, mid- and downstream assets all across the world doesn’t necessarily translate into bigger profits. As a result, many of these former giants are becoming much smaller. Much of the downsizing has come from selling off international operations and spinning off refineries and other processing facilities.

APA is no different than these other big energy stocks.

While it hasn’t officially announced that it’s getting leaner, the writing is on the wall. So far, APA has managed to sell around $10 billion worth of international assets this year. Those assets include fields in Canada and Argentina, as well as some of its non-controlling interests in Egypt. More sales are planned, and Apache just announced that it will seek more than $800 million for oil and gas properties in Western Canada.

Also on the chopping block are its ambitious liquefied natural gas (LNG) projects in Canada and Australia. Apache currently owns a 13% stake in the massive Wheatstone project in Australia and 50% stake in Canada’s Kitimat facility. Both of these plants are still in construction stages, but are expected to come online with the next few years.

Activist investor hedge fund Jana Partners LLC — which has built a stake in APA stock worth more than $1 billion — is adding to the pressure. Jana has contended that Apache has underperformed due to its worldwide focus, and the fund has been pressuring management to do more.

So the question isn’t when Apache will become a smaller energy stock, but how.

Management is said to be currently evaluating whether more sales or a complete spinoff of its international assets is a better deal for shareholders. Either way, investors are left with an oil-producing machine.

Onshore production in North America averaged 201,000 barrels per day. The vast bulk of that production came from the energy stocks new stomping ground in the prolific Permian basin. APA’s 1.7 million acres in the Permian achieved record-setting production of around 155,000 barrels of oil equivalent (BoE) per day for the latest reported quarter. That’s a 26% increase from the year-ago period.

And more production gains could be in store for Apache as the firm has nearly 920 million barrels worth of proven oil, natural gas and natural gas liquids (NGLs) reserves in the region. However, based on some seismic work down on its vast Permian acreage, Apache thinks that it has nearly 5.6 billion barrels worth of energy. That’s at whole lot of barrels.

Buy APA Stock Now

The name of the game for Apache and APA stock holders will undoubtedly be the Permian Basin and other onshore shale plays in North America. As it looks to relive itself from its international yoke, APA will become one heck of domestic energy producer and should help free the stock from doldrums and years of “meh” performance. Ultimately, the massive transformation should help APA stock’s valuation match its shale producing peers.

But don’t wait for those changes before buying APA stock — you’d be missing out on a bargain.

APA is trying to rid itself of its international assets. However, those assets aren’t exactly junk. In the meantime, they continue to produce some hefty cash flows. Those cash flows are helping drive Apache’s $8.5 billion North American capex budget as well as pay for the recently authorized $2 billion share buyback program. They problem is that they’re just too boring. Someone will want them, and APA hasn’t had any issues getting top dollar for them when it’s chosen to sell.

Perhaps the biggest reason to buy Apache is its current cheapness. With a forward P/E of only 13 and 1% dividend, APA stock is pretty cheap. However, the bargain won’t last long once its transformation begins to really shape up. Getting in now allows investors to really take advantage of the value that may not last.

The Bottom Line: Apache is taking the necessary steps to become lean and mean — which will ultimately drive performance of APA stock over the next few years.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.