APA Group

ASX:APA

APA Group

ASX:APA
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$7.93 (0%)
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#236
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Reports (1) My Report Forum Investors
Forum Topics APA APA Business Model/Strategy

Pinned straw:
Parko5
Added 2 months ago

@west


I saw you put a bid for APA? What is your thinking?

I dealt with APA years ago when we had some of our builder doing work near their pipeline. I was amazed how much federal legislation they have at their disposal to protect their assets.

They also had a very good team of commercial/lawyers doing their deals.

Obviously they are well placed for a future with Gas.

west
2 months ago

@Parko5

I've been sitting on this for a little while and it reflects my current thinking around the current market. The thesis however very simplistic. i don't like anything to complex.

  • energy transition tailwinds
  • progressive dividend distribution with relative high yield
  • inflation linked revenues (sticky inflation at present)


In my mind, our energy use will continue to grow and the cost of energy will grow due to supply demand factors, APA clips the ticket and pays consistent progressive distribution. it's sitting below is 200SMA and so after mulling it over on sunday I have chosen to take a RL and SM position. Risks are in the demand use, debt overload from bigger acquisitions, weather or system breakdown.

Enough for me to take a small position, but together with SOL, SHL, BKW, TLS helps provide some dividend income over the next 12-24mnths, we will see ;)

hope that gives you some insight into my thinking

JW

10
Parko5
2 months ago

Thanks @west

Yeah i have been looking at APA for years.

But I have not looked in a while... i remember the SP going down because the market did not like an acquisition.

I'll put it on the list to do some more research on.

Cheers

8