Insights

Here’s why the APA share price is in the green today

Is the energy infrastructure company on the prowl for an acquisition?
The post Here’s why the APA share price is in the green today appeared first on The Motley Fool Australia. –

Investors are bidding up the APA Group (ASX: APA) share price on Thursday as speculation of an entrance into the United States circulates.

This afternoon, the colossal energy infrastructure company is currently 0.92% higher at $11.475 per share. For comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.6% in the green.

Although, many onlookers might still be wondering what is going on with APA today.

Eyeing off the energy transition opportunity

Two weeks after cementing a new 52-week high, the APA Group share price is back in the frame today. By the looks of it, the company’s presentation at the Macquarie Australia Conference has been the catalyst for heightened intrigue.

Looking at the slide deck shared with investors, it is clear the Aussie energy giant is honing in on the energy transition narrative. For instance, APA points out that it is positioning for a tighter energy market by mapping out $1.04 billion worth of capital investment. This sizeable investment will be spread across several projects including:

South West Pipeline Expansion – $60 million
East Coast Grid Expansion – $270 million
Kurri Kurri Lateral Pipeline – $250 million
Northern Goldfields Interconnect – $460 million

Furthermore, APA chief executive Rob Wheals reportedly described the United States as an attractive market during the presentation.

The United States is going through the same energy transition that Australia is going through on a bigger scale. The US market is a big market and an attractive market.

The comments are pertinent as rumours hang in the air over APA Group deliberating on a potential $4 billion acquisition in the US. According to reports, the Aussie giant might be measuring up a deal with a US electricity transmission company.

How has the APA Group share price performed?

The APA share price has been a solid investment for shareholders over the past 12 months. In fact, an investment in the company a year ago delivered an 11% outperformance of the benchmark index.

However, compared to other utility companies on the ASX, APA Group has been outdone. The pick of the bunch has been Origin Energy Ltd (ASX: ORG) with a return of 70% over the past year.

The post Here’s why the APA share price is in the green today appeared first on The Motley Fool Australia.

Should you invest $1,000 in APA Group right now?

Before you consider APA Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and APA Group wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

How big is the APA dividend yield going to be in 2022?
Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
3 ASX companies that can raise prices whenever they want
2 ASX shares that could benefit from rising inflation
3 ASX 200 stocks smashing 52-week highs today

Motley Fool contributor Mitchell Lawler has positions in Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!