APA
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/3
| Measure | APA | Checked against | |
|---|---|---|---|
| Owner earnings | $998.00m | positive | ✓ |
| Return on equity | 23.5% | median 11.7% | ✓ |
| Debt to equity | 0.74x | median 0.79x | ✓ |
| Operating margin | — | median 15.0% | — |
Passes 3 of 3. To be clear: Warren Buffett has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 3/3
| Measure | APA | Checked against | |
|---|---|---|---|
| Return on capital employed | 29.2% | median 10.1% | ✓ |
| Cash conversion | 3.17x | median 1.78x | ✓ |
| Operating margin | — | median 15.0% | — |
| Debt to equity | 0.74x | median 0.79x | ✓ |
Passes 3 of 3. To be clear: Terry Smith has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 2/2
| Measure | APA | Checked against | |
|---|---|---|---|
| Return on capital employed | 29.2% | median 10.1% | ✓ |
| Return on equity | 23.5% | median 11.7% | ✓ |
| Operating margin | — | median 15.0% | — |
Passes 2 of 2. To be clear: Charlie Munger has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 3/3
| Measure | APA | Checked against | |
|---|---|---|---|
| Return on equity | 23.5% | median 11.7% | ✓ |
| Debt to equity | 0.74x | median 0.79x | ✓ |
| Cash conversion | 3.17x | median 1.78x | ✓ |
Passes 3 of 3. To be clear: Chuck Akre has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 1/1
| Measure | APA | Checked against | |
|---|---|---|---|
| Operating margin | — | median 15.0% | — |
| Net margin | — | median 10.2% | — |
| Return on capital employed | 29.2% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Philip Fisher has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/2
| Measure | APA | Checked against | |
|---|---|---|---|
| Current ratio | 0.82x | median 1.25x | ✗ |
| Debt to equity | 0.74x | median 0.79x | ✓ |
Passes 1 of 2. To be clear: Walter Schloss has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/1
| Measure | APA | Checked against | |
|---|---|---|---|
| Current ratio | 0.82x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
Passes 0 of 1. To be clear: Benjamin Graham has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | APA | Checked against | |
|---|---|---|---|
| Return on capital employed | 29.2% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/1
| Measure | APA | Checked against | |
|---|---|---|---|
| Debt to equity | 0.74x | median 0.79x | ✓ |
| Net margin | — | median 10.2% | — |
Passes 1 of 1. To be clear: Peter Lynch has never said anything about APA. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 25.1% | whySwings with the commodity price, not the business. |
| Operating cash flow | 7.9% | whyBefore capital spending. |
| Free cash flow | 19.9% | whyWhat producers set distributions against. Check for variable or special dividends before reading a trend. |
Spread between highest and lowest: 17.1 percentage points. Same filings, different denominators.
Coverage rating 69 / 100 — Adequate. ? Peer standing 39/50Direction 30/30Stability 0/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 19.9% |
| 2024-12-31 | 45.9% |
| 2023-12-31 | 37.7% |
| 2022-12-31 | 6.5% |
| 2021-12-31 | 2.2% |
| 2020-12-31 | 104.2% |
77% of the 31 energy here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $1.00 ÷ diluted EPS $3.99
- Operating cash flow — dividends paid $360m ÷ operating cash flow $4,545m
- Free cash flow — dividends paid $360m ÷ (operating cash flow $4,545m − capex $2,740m)
Where the figures came from
- 10-K filed 2026-02-26 · accession 0001841666-26-000015
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever APA files. The monthly letter carries what filed, what moved, and one finding computed across every company here.