Apache Corporation Essay Example for Free

Apache mountain EssayApache Corporation was formed in 1954, based on the idea of becoming significant and prosperous in the oil effort. The play along took $250,000 of investor capital, polar it with fierce determination and now Apache Corporation is considered one of the top independent oil and gas geographic expedition and yield companies in the world (Apachecorp.com, 2012). Apache Corporation operates in both domestic and international markets exploring for, developing, and producing natural gas, unsmooth oil, and natural gas liquids (Apachecorp.com, 2012). On December 31, 2011, the Company had production in the United 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 other countries for new discoveries and maturation opportunities (Apachecorp.com, 2012).EnvironmentThe success of any business depends on the ability to adapt to the environment it operates in. As graphic symbol of the oil and gas sedulousness Apache Corporation operates in a global business environment cognise for its competitiveness. The company has shown growth in production thirty one of the last thirty three long time and throughout those course of instructions transplant has been a constant companion. Wide swings in oil prices have mother commonplace in the world today, the price of a barrel of oil changes almost daily. Operating in other countries means that political unrest and changes in government policies must be addressed, as tumefy 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 yet 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 allows th e development of resources that are trapped in shale and other areas that have been nearly impractical to mine in the past. Apache Corporation now applies this applied science 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 HealthAccording to the 2011 Apache Corporation Annual Report the company showed a profit for the year and the debt ratio is 0.22. One top challenger Anadarko Petroleum located in San Antonio Texas has a debt ratio of .65 and showed a loss for the 2011 year (Hoovers, 2012). A import top competitor Devon Energy located in Oklahoma 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 financial status of Apache Corporation is sound. Working in a mellowed 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 current momentum. The natural gas product is sold most oft at current market prices while the crude oil is marketed directly to integrated marketers and refineries. Contract damage are generally 30 days with automatic renewal 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.hoo vers.com/company/Apache_Corporation/rfrtif-1-1njea3.htmlHoovers. (2012). Retrieved from http//www.hoovers.com/company/Devon_Energy_Corporation/rrxkxi-1-1njea5.html