During the run-up in oil and gas prices, Apache
Of course, pretty much every exploration and production company's third-quarter results are looking good. Apache's no exception, with earnings nearly doubling their prior-year levels, and cash flow coming in above the $2 billion mark once again.
The real difference here is the way Apache runs its business, and how it's positioned for a lower-priced commodity environment coupled with tight credit conditions.
Countless companies, from Hess
Here in Fooldom, we have a message board dedicated to living below your means. Apache was a proponent of such an approach long before it suddenly became more or less mandatory. Given its restrained spending and strong financial profile, the company suddenly finds itself "among the fortunate few with access to capital at a reasonable cost." The company issued $800 million of debt at the beginning of the month at an average cost of borrowing below 6.5%.
Between its cash on hand and unused credit facilities, Apache possesses around $4 billion of firepower. The company is positioned to be a key consolidator as the pendulum swings toward undervaluation of assets. I told you not to admonish Apache -- these guys are riding the cycle like Lance Armstrong.
Fool contributor Toby Shute, known to some as TMFSmashy, was recently ranked 72nd out of more than 120,000 CAPS players. He doesn't have a position in any company mentioned. Chesapeake Energy is an Inside Value selection. The Motley Fool has a disclosure policy.