Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Apache Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
The financial trajectory from 2011 to 2015 is characterized by a significant divergence between operating cash generation and the cash available to equity holders, culminating in a sharp decline in overall liquidity by the end of the period.
- Net Cash Provided by Operating Activities
- Operating cash flows remained relatively resilient between 2011 and 2014, fluctuating within a range of 8.38 billion to 9.95 billion US dollars. However, a severe contraction occurred in 2015, where net cash provided by operating activities dropped to 2.83 billion US dollars, representing a decrease of approximately 66% from the previous year.
- Free Cash Flow to Equity (FCFE)
- FCFE exhibited extreme volatility and a negative trend. After peaking at 4.13 billion US dollars in 2012, the metric shifted to a deficit of 3.66 billion US dollars in 2013. While there was a partial recovery toward the break-even point in 2014 with a deficit of 463 million US dollars, FCFE deteriorated again in 2015, reaching a low of negative 4.22 billion US dollars.
- Analysis of Cash Flow Divergence
- A notable discrepancy is observed between 2013 and 2014, where operating cash flows remained strong (above 8 billion US dollars) while FCFE remained negative. This suggests that cash generated from operations was insufficient to cover capital expenditures and debt obligations during this window. The synchronized collapse of both operating cash flow and FCFE in 2015 indicates a systemic decline in the company's ability to generate cash and sustain equity value.
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Price to FCFE Ratio, Current
Apache Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 379,423,069 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | (4,218) |
| FCFE per share | -11.12 |
| Current share price (P) | 50.18 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 18.26 |
| ConocoPhillips | 24.55 |
| Exxon Mobil Corp. | 28.58 |
Based on: 10-K (reporting date: 2015-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Apache Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | (4,218) | (463) | (3,663) | 4,127) | 2,372) | |
| FCFE per share3 | -11.15 | -1.23 | -9.28 | 10.53 | 6.17 | |
| Share price1, 4 | 39.47 | 65.84 | 79.29 | 73.75 | 107.93 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | — | — | 7.00 | 17.49 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
3 2015 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -4,218,000,000 ÷ 378,297,784 = -11.15
4 Closing price as at the filing date of Apache Corp. Annual Report.
5 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= 39.47 ÷ -11.15 = —
6 Click competitor name to see calculations.
A significant deterioration in equity valuation and cash flow generation is evident between 2011 and 2015. The share price exhibited a persistent downward trajectory over the period, declining from 107.93 US$ in 2011 to 39.47 US$ by the end of 2015, representing a substantial loss in market value.
- Free Cash Flow to Equity (FCFE) per Share
- Positive cash flow generation was maintained during 2011 and 2012, with a peak of 10.53 US$ per share in 2012. However, a sharp reversal occurred in 2013, where FCFE per share dropped to -9.28 US$. This negative trend persisted through 2015, reaching -11.15 US$, indicating that the entity shifted from generating surplus cash for shareholders to experiencing cash deficits.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio contracted sharply from 17.49 in 2011 to 7.00 in 2012, coinciding with the increase in FCFE per share. From 2013 through 2015, the ratio became inapplicable as the FCFE per share turned negative. This transition suggests a fundamental shift in the company's financial health, moving from a valuation based on cash yields to a state where cash flow no longer supported the share price.
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