Discounted Cash Flow (DCF) Analysis Levered

APA Corporation (APA)

$41.74

-0.30 (-0.71%)

All numbers are in Millions, Currency in USD

Stock DCF: -6.83 | 41.74 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	5,887	7,348	6,315	4,435	7,985	9,203.39	10,607.68	12,226.25	14,091.79	16,241.98
Revenue (%)
Operating Cash Flow	2,428	3,777	2,867	1,388	3,496	3,922.92	4,521.50	5,211.41	6,006.59	6,923.10
Operating Cash Flow (%)
Capital Expenditure	-2,760	-3,904	-2,961	-1,302	-1,113	-3,500.92	-4,035.11	-4,650.80	-5,360.45	-6,178.37
Capital Expenditure (%)
Free Cash Flow	-332	-127	-94	86	2,383	422	486.39	560.60	646.14	744.73

Weighted Average Cost Of Capital

Share price	$ 41.74
Beta	3.628
Diluted Shares Outstanding	375
Cost of Debt
Tax Rate	39.98
After-tax Cost of Debt	3.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	20.739
Total Debt	7,609
Total Equity	15,652.50
Total Capital	23,261.50
Debt Weighting	32.71
Equity Weighting	67.29
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	5,887	7,348	6,315	4,435	7,985	9,203.39	10,607.68	12,226.25	14,091.79	16,241.98
Operating Cash Flow	2,428	3,777	2,867	1,388	3,496	3,922.92	4,521.50	5,211.41	6,006.59	6,923.10
Capital Expenditure	-2,760	-3,904	-2,961	-1,302	-1,113	-3,500.92	-4,035.11	-4,650.80	-5,360.45	-6,178.37
Free Cash Flow	-332	-127	-94	86	2,383	422	486.39	560.60	646.14	744.73
WACC
PV LFCF						182.35	182.74	183.13	183.53	183.93
SUM PV LFCF										1,842.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	15.01
Free cash flow (t + 1)	759.63
Terminal Value	5,838.79
Present Value of Terminal Value	2,901.65

Intrinsic Value

Enterprise Value	4,744.20
Net Debt	7,307
Equity Value	-2,562.80
Shares Outstanding	375
Equity Value Per Share	-6.83