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Fly News Breaks for January 7, 2020
Jan 7, 2020 | 09:27 EDT
BofA analyst Doug Leggate upgraded Apache (APA) to Buy from Neutral with a price target of $36, up from $28, after the company announced a "significant discovery" on its 50% owned Block 58 in Suriname. While noting that the scale of the discovery can't be determined from the first well, Leggate holds the view that this confirms the continuation of the working hydrocarbon system from the adjacent Stabroek block and positions Apache as the next most levered US E&P to the Guyana-Suriname basin after Hess (HES). The analyst, who sees this news as "potential game changer" for the investment case, expects investor perceptions of Apache to reverse and his updated price target reflects the addition of risked exploration value for Suriname, noted Leggate.
News For APA;HES From the Last 2 Days
Feb 21, 2020 | 15:45 EST
Bullish option flow detected in Apache with 7,945 calls trading, 1.5x expected, and implied vol increasing almost 4 points to 57.66%. Apr-20 30 calls and Mar-20 35 calls are the most active options, with total volume in those strikes near 3,800 contracts. The Put/Call Ratio is 0.39. Earnings are expected on February 26th.