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Apache report - December 2000
Report on Apache Corporation (APA) - Dec 19, 2000
TO: HPD Investment Group
FR: Nancy Montague, For Dec meeting
1. (market price/share as of close of market, 12/15/00 - $59 1/8)
Shares owned: 22
Market value: $1300.75
Cost basis: $774 ($35.19/share, inc. commission)
Average Annual return: 21%
Percent gain: 68%
2. . Research - 15 Strong Buy; 10 moderate buy; 3 hold
UPATE 1 - Falling crude prices take bite out of oil shares
NEW YORK, Dec 14 (Reuters) - Falling crude oil prices took a bite out of
energy companies on Thursday, with shares of major companies such as Chevron
Corp. and smaller exploration concerns such as Apache Corp. losing ground in
the stock market.
The Standard & Poor's index of international oil companies -- which includes
Chevron (NYSE:CHV - news), Exxon Mobil Corp. (NYSE:XOM - news) and others --
dropped 29.92 points, more than 3 percent, to 963.08 on Thursday.
The S&P index has now lost almost 10 percent since the middle of October, a
period in which oil prices have fallen from their perch above $36 a barrel.
Oil prices on the New York Mercantile Exchange dropped another 75 cents to
$27.99 a barrel on Thursday, putting further pressure on oil shares.
``I believe that it's related to the fear factor of the day, which is a
collapse in demand,'' said Banc of America analyst Tyler Dann.
``But we think there are select opportunities right now for the picking,''
he added, pointing to BP Amoco (NYSE:BP - news), Conoco Inc. (NYSE:COCa -
news) and Phillips Petroleum Co. (NYSE:P - news).
On the New York Stock Exchange, Phillips fell $2 to $52-1/2, while Conoco
fell 11/16 to $25-9/16.
Some of their rivals were even harder hit, with Exxon, the No. 1 U.S. oil
company, finishing down $2-3/16 at $85-1/2. Chevron lost $3-3/16 to
$79-1/16, and Texaco Inc. (NYSE:TX - news) dropped $2-3/4 to $57-1/8.
Independent exploration and production companies Apache Corp. (NYSE:APA -
news) and Anadarko Petroleum Corp. (NYSE:APC - news) also swooned in the
The drop in crude oil prices -- continuing a slide that began two months ago
when they hit 10-year highs -- came as traders appeared to decide that a
recovery in petroleum inventories should better balance supply and demand in
the new year.
At the same time, Iraq has resumed its exports after a request from Baghdad
for a surcharge kept its 2.3 million barrels a day off the world markets.
``It's simple. The world is oversupplied with oil,'' said Gary Ross of
energy consultants Petroleum Industry Research Associates. ``European crude
stocks already are substantially higher than this time last year and Asian
demand is failing.''
Oil for delivery in January hit a low of $27.51 a barrel during the session
on the futures market.
While oil shares spiraled on Thursday, the rest of the stock market was also
struggling. The Dow Jones industrial average fell 119.45 points, or 1.11
percent, at 10,674.99, weighed down by profit warnings from the likes of
financial giants Chase Manhattan Corp. (NYSE:CMB - news) and J.P. Morgan &
Co. (NYSE:JPM - news).
BEAR STEARNS COMPANIES, INC. (THE) issued a Daily Note on December 06, 2000
for APACHE CORP
On December 06, 2000 BEAR STEARNS COMPANIES, INC. (THE) analyst ELLEN HANNAN
issued a 3 page Daily Note on APACHE CORP. Report highlights: 'The company
announced the acquisition of Phillips Petroleum's Canadian assets. A BUY
rating was maintained with a 12-month price target of $73.00.'.
Report No.: APA_F1000676