APA Corp: Suriname Final Investment Decision Arrives
No-moat APA announced on Oct. 1 that Suriname has been given the green light, or final investment decision, by the partners involved in the project. As we had already incorporated a 2028 first oil for the project in our second-quarter update, we are leaving our fair value estimate unchanged at $44. The Suriname development represents most, if not all, of the difference between our fair value and the current market value. So, if we’re wrong about Suriname, investors’ downside risk is backstopped by APA’s non-Suriname assets. And with the FID being achieved, shares look attractive at current prices.
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