Apache Case Essay

4043 Words17 Pages
Team 1

Table of Contents

Executive Summary
Oil & Gas Industry Analysis
Apache Managing Risk Analysis
Porter 5 Forces Model
Conclusion
Appendix

Executive Summary
Apache Corporation is one of the world largest independent energy companies in the world, and is headquartered in Houston, TX. Apache has gas exploration and production company with operations in six countries, divided into seven operating regions which are Canada, Egypt, Australia, offshore the United Kingdom in the North Sea and Argentina and also to include the United States. Apache was formed in 1954 in Minneapolis, Minnesota by Truman Anderson, Raymond Plank, and Charles Arnao.

In 1956, Apache was one of the first
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There are many financial ratios that analysts use to dissect a company’s financial statements so they are able to compare them to their competitors. These ratios look at the firm’s liquidity, profitability, and capital structure. Apache has demonstrated strong consistent growth over the last five years.

Oil and Gas Industry Analysis
The oil and gas business is highly competitive in the exploration for and acquisitions of reserves, the acquisition of oil and gas leases, equipment and personnel required to find and produce reserves, and in the gathering and marketing of oil, gas, and natural gas liquids. The competitors include national oil companies, major integrated oil and gas companies, other independent oil and gas companies, and participants in other industries supplying energy and fuel to industrial, commercial, and individual consumers.

Apache has a balanced production mix between oil and gas, which gives them a strong competitive position relative to many of our competitors who do not possess similar geographic and production diversity.

Apache’s main competitors consist of Occidental Petroleum, Anadarko, Hess Corp and Marathon Oil Corp. All of these companies compete in a very competitive industry where commodities are sold. Apache is one of the largest of the independent oil companies. In an industry with high entry barriers, it is impossible to build a corporation with 24.3 billion in assets

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