Apache Corporation Essay

Apache mountain was formed in 1954, based on the idea of becoming evidential and prosperous in the inunct effort. The ships company took $250,000 of investor capital, paired it with fierce determination and straight off Apache smoke is considered one of the top independent anoint and gas exploration and outturn companies in the world (Apachecorp.com, 2012). Apache Corporation operates in both domestic and transnational markets exploring for, developing, and producing intrinsic gas, crude oil, and natural gas liquids (Apachecorp.com, 2012). On December 31, 2011, the familiarity had production in the fall in States, Canada, Egypt, and Australia. Offshore production exists in the United Kingdom, the North Sea, and Argentina. Looking into the future Apache plans to continue to explore new(prenominal) countries for tonic discoveries and development opportunities (Apachecorp.com, 2012).EnvironmentThe success of any business depends on the tycoon to adapt to the purlieu it operates in. As part of the oil and gas fabrication Apache Corporation operates in a global business environment cognize for its competitiveness. The company has show upn growth in production thirty one of the furthest thirty three years and throughout those years change has been a constant companion. Wide swings in oil prices have become well-worn in the world today, the price of a barrel of oil changes intimately daily. Operating in other countries means that political unrest and changes in government policies must be addressed, as well as oil industry regulations that are constantly evolving. Apache Corporation has withstood the changes in business environment for 57 years and remains committed to successfully embracing the changes notwithstanding to come.TechnologyOver the last 10 years the most significant technological advance for the industry has been the coupling of horizontal drilling with hydraulic fracturing techniques. This new method al measlys the development of resources that are trapped in shale and other areas that have been around impossible to mine in the past. Apache Corporation now applies this technology worldwide (Apachecorp.com, 2012). This method is also used by nearly all other companies in the industry including the comparison companies Devon and Anadarko.Financial wellnessAccording to the 2011 Apache Corporation Annual Report the company showed a good for the year and the debt ratio is 0.22. One top competitor Anadarko Petroleum turn up in San Antonio Texas has a debt ratio of .65 and showed a loss for the 2011 year (Hoovers, 2012). A second top competitor Devon Energy located in okay City, Oklahoma had a better year in 2011, this company did show a profit and their debt ratio is 0.48 (Hoovers, 2012). Within the gas and oil industry the overall monetary status of Apache Corporation is sound. Working in a high risk industry the production risks are balanced by both geographic diversification and a mix of high and low risk properties in the portfolio (Hoovers, 2012).With approximately 3 billion barrels of oil equivalent in reserve Apache Corporation is positioned to maintain their present-day(prenominal) momentum. The natural gas product is sold most often at current market prices while the crude oil is marketed directly to integrated marketers and refineries. set out terms are generally 30 days with automatic diversity until canceler at current market prices which change almost daily (Apachecorp.com, 2012). Apache Corporation has been exploring for and producing oil and gas products for over 50 years. The company has been successful and appears to be a sound investment. In this analysis we have reviewed the business environment, financial health and use of technology for Apache Corporation for the purpose of deciding whether or not to invest in the company.Referenceshttp//www.apachecorp.com/Resources/Upload/file/investors/Apache_AR_2011.pdf Hoovers. (2012). Retrieved from http//www.hoovers.com/co mpany/Apache_Corporation/rfrtif-1-1njea3.htmlHoovers. (2012). Retrieved from http//www.hoovers.com/company/Devon_Energy_Corporation/rrxkxi-1-1njea5.html