Repsol considering merger of its upstream division with APA, according to Bloomberg.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2025
0mins
Should l Buy APA?
Repsol's Strategic Move: Repsol is exploring a reverse merger of its upstream unit with potential partners, including APA Corp., as part of its strategy to list the business in New York.
Valuation and Previous Stake Sale: The upstream unit was previously valued at $19 billion, including debt, when Repsol sold a 25% stake to a private equity firm in 2022.
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Analyst Views on APA
Wall Street analysts forecast APA stock price to fall
19 Analyst Rating
4 Buy
10 Hold
5 Sell
Hold
Current: 40.800
Low
21.00
Averages
26.17
High
40.00
Current: 40.800
Low
21.00
Averages
26.17
High
40.00
About APA
APA Corporation is an independent energy company. The Company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and that explore for oil and natural gas offshore Suriname. The Company’s upstream business has oil and gas operations in three geographic areas: the United States, Egypt and offshore the United Kingdom in the North Sea (North Sea). It also has active exploration and appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations. It maintains a diversified asset portfolio, including conventional and unconventional, onshore and offshore, oil and natural gas exploration and production interests. In the United States, operations are primarily focused on the Permian Basin of West Texas. The Company has conventional onshore assets in Egypt’s Western Desert, and offshore assets on the United Kingdom’s Continental Shelf.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
APA Corp. Discovers New Natural Gas in Egypt
- New Gas Discovery: APA Corp. has made a new natural gas discovery in Egypt's Western Desert with the SKAL-1X exploratory well, showing preliminary production rates of 26 million cubic feet per day and 2,700 barrels per day of condensate, significantly enhancing the company's resource base.
- Accelerated Production Potential: The discovery is located near existing infrastructure and production facilities, which is expected to accelerate the production launch while reducing capital expenditures, thereby improving the company's operational efficiency and profitability in the region.
- Collaborative Development Progress: This discovery marks the latest achievement in the collaboration between APA Corp. and the state-owned Egyptian General Petroleum Corp. to develop gas resources, following last November's discovery from the Gomana-1 exploration well, further solidifying their partnership.
- Optimistic Market Outlook: With the increasing global demand for natural gas, APA Corp.'s discovery in Egypt is poised to enhance its market competitiveness and potentially provide strong support for future investments and expansion.
See More
Significant Premarket Moves in U.S. Stocks
- Fertilizer Price Fluctuation: CF Industries' shares fell nearly 4% as reports indicated that negotiations surrounding the U.S.-Iran war could signal an end to commodity shortages, despite a 27% increase since the conflict began.
- Chip Innovation: Arm's stock rose 13% after unveiling its first in-house chip, projecting $15 billion in revenue by 2031, highlighting its strong growth potential in the semiconductor market.
- Acquisition Deal: Terns Pharmaceuticals saw shares gain over 5% after Merck agreed to acquire the biopharma company for $53 per share in cash, valuing the deal at $6.7 billion, expected to close in Q2.
- Stock Buyback Plan: Robinhood's stock jumped 4% after announcing a $1.5 billion stock buyback plan, set to be executed over three years, aimed at enhancing shareholder value.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Movement: The S&P 500 Index is down 0.16%, while the Dow Jones Industrial Average is up 0.13%, and the Nasdaq 100 Index has decreased by 0.50%, reflecting investor concerns over the ongoing Iran conflict, which is dampening market sentiment.
- Rising Energy Prices: WTI crude oil prices have surged over 4% due to Iran's missile strikes on Israel and US bases, which not only limits stock market declines but also raises inflation expectations, potentially influencing future monetary policy decisions.
- Economic Data Performance: The US Q4 nonfarm productivity remained unchanged at 1.8%, while unit labor costs were revised up to 4.4% from 2.8%, exceeding market expectations, indicating economic resilience that may support the stock market.
- International Tensions Impact: Saudi Arabia and the UAE have taken steps toward joining the Iran war, potentially escalating the conflict, which increases market concerns about future geopolitical risks and drives investors towards safer assets.
See More
Barclays Upgrades APA Corp. to Equal Weight Amid Middle East Developments
- Rating Upgrade: Barclays upgraded APA's rating from Underweight to Equal Weight, raising the price target from $28 to $35, reflecting the positive impact of improved Middle East developments on APA's gas marketing business.
- Optimistic Market Outlook: Analyst Betty Jiang noted that APA has the highest exposure to LNG prices in her coverage, with projected gas marketing gains of approximately $1.15 billion in 2026, significantly higher than the previous guidance of $650 million.
- Cash Flow Potential: Under the current macro backdrop, every $5/MMBtu increase in LNG prices is expected to yield about $210 million in incremental annual cash flow for APA, showcasing its strong cash flow generation capabilities.
- Free Cash Flow Outlook: APA is projected to generate nearly $2.9 billion in free cash flow in 2026, translating to a 22% free cash flow yield, indicating robust financial resilience amid market volatility.
See More
Middle East Tensions Rise: Iran Threatens to Block Strait of Hormuz
- Missile Threat Escalation: Iran's ballistic missile strike towards Diego Garcia, over 2,500 miles away, showcases its military capabilities, putting major European cities at risk and potentially escalating international tensions further.
- Strait of Hormuz Blockade: The Strait of Hormuz is once again blocked, with Iran threatening not to reopen it until all damaged power plants are rebuilt, which could severely impact the global energy supply chain, especially for countries reliant on this waterway.
- Energy Market Volatility: While the S&P 500 has only lost 6% over the past month, WTI crude oil futures have surged above $100 per barrel, indicating market sensitivity to rising energy prices, which may hinder global economic recovery.
- Corporate Response Measures: UPS and FedEx have instituted additional shipping surcharges, while airlines like American Airlines and United Airlines have reduced operational capacity and lowered profit forecasts, reflecting corporate strategies in response to high energy costs.
See More
APA Corp. Discovers New Natural Gas in Egypt
- New Gas Discovery: APA Corp. has made a new natural gas discovery in Egypt's Western Desert with the SKAL-1X exploratory well, showing preliminary production rates of 26 million cubic feet per day and 2,700 barrels per day of condensate, significantly enhancing the company's resource base.
- Accelerated Production Potential: The discovery is located near existing infrastructure and production facilities, which is expected to accelerate the production launch while reducing capital expenditures, thereby improving the company's operational efficiency and profitability in the region.
- Collaborative Development Progress: This discovery marks the latest achievement in the collaboration between APA Corp. and the state-owned Egyptian General Petroleum Corp. to develop gas resources, following last November's discovery from the Gomana-1 exploration well, further solidifying their partnership.
- Optimistic Market Outlook: With the increasing global demand for natural gas, APA Corp.'s discovery in Egypt is poised to enhance its market competitiveness and potentially provide strong support for future investments and expansion.
See More
Significant Premarket Moves in U.S. Stocks
- Fertilizer Price Fluctuation: CF Industries' shares fell nearly 4% as reports indicated that negotiations surrounding the U.S.-Iran war could signal an end to commodity shortages, despite a 27% increase since the conflict began.
- Chip Innovation: Arm's stock rose 13% after unveiling its first in-house chip, projecting $15 billion in revenue by 2031, highlighting its strong growth potential in the semiconductor market.
- Acquisition Deal: Terns Pharmaceuticals saw shares gain over 5% after Merck agreed to acquire the biopharma company for $53 per share in cash, valuing the deal at $6.7 billion, expected to close in Q2.
- Stock Buyback Plan: Robinhood's stock jumped 4% after announcing a $1.5 billion stock buyback plan, set to be executed over three years, aimed at enhancing shareholder value.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Movement: The S&P 500 Index is down 0.16%, while the Dow Jones Industrial Average is up 0.13%, and the Nasdaq 100 Index has decreased by 0.50%, reflecting investor concerns over the ongoing Iran conflict, which is dampening market sentiment.
- Rising Energy Prices: WTI crude oil prices have surged over 4% due to Iran's missile strikes on Israel and US bases, which not only limits stock market declines but also raises inflation expectations, potentially influencing future monetary policy decisions.
- Economic Data Performance: The US Q4 nonfarm productivity remained unchanged at 1.8%, while unit labor costs were revised up to 4.4% from 2.8%, exceeding market expectations, indicating economic resilience that may support the stock market.
- International Tensions Impact: Saudi Arabia and the UAE have taken steps toward joining the Iran war, potentially escalating the conflict, which increases market concerns about future geopolitical risks and drives investors towards safer assets.
See More
Barclays Upgrades APA Corp. to Equal Weight Amid Middle East Developments
- Rating Upgrade: Barclays upgraded APA's rating from Underweight to Equal Weight, raising the price target from $28 to $35, reflecting the positive impact of improved Middle East developments on APA's gas marketing business.
- Optimistic Market Outlook: Analyst Betty Jiang noted that APA has the highest exposure to LNG prices in her coverage, with projected gas marketing gains of approximately $1.15 billion in 2026, significantly higher than the previous guidance of $650 million.
- Cash Flow Potential: Under the current macro backdrop, every $5/MMBtu increase in LNG prices is expected to yield about $210 million in incremental annual cash flow for APA, showcasing its strong cash flow generation capabilities.
- Free Cash Flow Outlook: APA is projected to generate nearly $2.9 billion in free cash flow in 2026, translating to a 22% free cash flow yield, indicating robust financial resilience amid market volatility.
See More
Middle East Tensions Rise: Iran Threatens to Block Strait of Hormuz
- Missile Threat Escalation: Iran's ballistic missile strike towards Diego Garcia, over 2,500 miles away, showcases its military capabilities, putting major European cities at risk and potentially escalating international tensions further.
- Strait of Hormuz Blockade: The Strait of Hormuz is once again blocked, with Iran threatening not to reopen it until all damaged power plants are rebuilt, which could severely impact the global energy supply chain, especially for countries reliant on this waterway.
- Energy Market Volatility: While the S&P 500 has only lost 6% over the past month, WTI crude oil futures have surged above $100 per barrel, indicating market sensitivity to rising energy prices, which may hinder global economic recovery.
- Corporate Response Measures: UPS and FedEx have instituted additional shipping surcharges, while airlines like American Airlines and United Airlines have reduced operational capacity and lowered profit forecasts, reflecting corporate strategies in response to high energy costs.
See More
