APA Corp hikes dividend by 100%

On September 14, 2022, APA Corp, formerly Apache Corporation (APA), announced that it will boost its dividend by another 100 percent to 25 cents quarterly per share. This comes after a dividend hikes of 100% and 150% previously and brings back the dividend to the levels before the 2021 cut.

The next quarterly APA dividend on common shares is payable November 22, 2022, to stockholders of record on October 21, 2022, at a rate of 25 cents per share on the company’s common stock, up from 12.5 cents per share. A new annual dividend rate of $1.00 per share yields 2.5% at a stock price of $40.45.

“Over the last year, we’ve significantly strengthened our balance sheet and committed to returning a minimum of 60% of free cash flow to our shareholders through dividend and stock repurchases,” said John Christmann IV, APA CEO and president. “The vast majority of this return is still being delivered through stock repurchases; however, we are confident that our long-term cash flow will comfortably support this step-up in the base dividend payment. At an annualized rate of $1.00 per share, our dividend yield is expected to exceed the current average dividend yield of the S&P 500.”

APA Corp is an energy holding company. The company operates through its subsidiaries: Apache Corporation and APA Corporation Suriname. The former Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom and exploration activities offshore Suriname. Apache Oil Corporation was founded in 1954 in Minneapolis, Minnesota, by Truman Anderson, Raymond Plank and Charles Arnao working alongside six employees and backed by 41 shareholders who invested $250,000 in initial capital. The company’s name was changed to Apache Corporation in 1960. The former Apache has paid a dividend every year since 1965.