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APA - APA Group

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A solid announcement this morning regarding the SW Queensland pipeline -

In part, bolds mine -
“Now that we have clarity in our regulatory framework for our East Coast Gas Grid, we will move at pace to bring
to market opportunities to optimise high-capacity compressor infrastructure across the network, as well as add
capacity either on existing pipeline infrastructure or through new pipeline construction and looping.

.........We will confirm our expansion plans for the East Coast Gas Grid in the coming months.”


In other news, Unisuper look to have sold their stake too, so all round a good day.
 
Not to mention the other announcement on the Pilbara grid, another good piece of infrastructure to diversify away from gas
 
Not a bad outcome for my current play, wondering if i should add it to my super stable.Do i see it as a multi years reliable earner?
 
qldfrog said:
Not a bad outcome for my current play, wondering if i should add it to my super stable.Do i see it as a multi years reliable earner?
Click to expand...
The dividend will be stable and growing, and the share price should eventually recover to whatever a rational dividend yield is based on the alternatives like term deposits etc.
 
UniSuper was the seller behind a $340 million stake in APA Group crossed by JPMorgan before Friday’s market open. The same investment bank was on hand in mid-October, when they sold down a $500 million stake.

Friday’s trade was done at $7.23 per APA share, which represents a 0.80 per cent premium to the last close.

The sale caps off UniSuper’s exit from APA Group, where it had been the largest shareholder with a 9.97 per cent stake.
.
DF's observation.... no longer any overhang disrupting price discovery
 
Last edited:
Dona Ferentes said:
DF's observation.... no longer any overhang disrupting price discovery
Click to expand...
H's position - glad to see the back of them.

From one of their competitors -

Environmental Pressure Behind the Sell-Off?​

The sale coincides with mounting pressure from environmental advocates—including Peter Singer, Lesley Hughes, and David Karoly—who urged UniSuper to oppose APA’s plans to develop gas pipelines in the Beetaloo Basin. While UniSuper hasn’t officially linked the sale to these calls, the timing raises questions about whether activist demands are influencing investment decisions.

Having university super out of the nest can only be be a positive for returns imo.

Even the myopic are starting to see that Gas has to be a major part of the solution if Uranium and coal are in the naughty corner.

​

 
A bit of interesting fluff for APA holders. (All the real news has been covered..)

These 2 ASX dividend shares have grown their dividend every year for 20 years!​


APA Group (ASX: APA)​


APA is an ASX energy infrastructure share. Its main asset group is a national gas pipeline that transports half of the country's usage. It also owns various gas-related infrastructure assets, renewable energy generation and electricity transmission assets.

This company pays for its growing distribution from its increasing cash flow. It has grown its distribution every year since 2004, which I think is a great record.

The vast majority of APA's revenue is linked to inflation, so while its debt costs more, its revenue has been climbing to offset some of the financial pain. Another tailwind for earnings is the business's regular addition to its portfolio of assets, whether that's constructing a new pipeline or making another acquisition.

APA expects to grow its distribution per security by 1.8% in FY25 to 57 cents, which translates into a forward distribution yield of 7.9%.

 
From Market Matters this morning:

​
​
MM’s Top picks in our four portfolios into 2025
Last quarter, we addressed the most common question at MM: “What is your favourite stock for x, y, or z?” The report was titled MM’s top picks from each of our four portfolios! – released on 12th September. The results of the four picks were solid, delivering an average gain of +30% in the 3 months since; hopefully, we’re not tempting fate by repeating the exercise looking forward to 2025:
  • Active Income Portfolio: We selected APA Group (APA), Australia’s largest natural gas transmission infrastructure owner, whose shares had been struggling in 2024. The position has slipped -2% underperforming the main board, as has been the trend this year, i.e., the strong getting stronger and vice vers
 
I should correct the above. I was under the impression that APA is Market Matters' top pick over the first Qtr of cal 2025 in their active income p/f. Actually it was their top income pick from September for the Dec Qtr. However, they are still holding APA and hint that they expect to be holding it when Xmas 2025 comes round. Their actual top income pick for the first Qtr of cal 2025 is National Storage REIT (NSR)

APA Not Held
 
Market Matters this morning thinks Michele Bullock's dovish interest rate noises favour particular stocks. One of their three picks is APA.
The other two are a mortgage insurer and a telecom.

APA Group (APA) $7.38​

It’s been a tough couple of years for APA, but we like the stock ~$7.40. On a yield above 8% underpinned by a regulated asset base, we continue to think APA is a highly attractive income stock which is poised for capital appreciation/growth after Michele Bullock’s more dovish rhetoric this week – it’s in our Active Growth Portfolios Hitlist for a reason! We can see a retest of $9 over the coming years, where it was trading in May, on interest rate differentials alone.
Not Held
 
Not particularly successful as one of my picks for the 2024 trading competition:



Long term though, politics aside the energy issue ultimately has to be sorted unless we want society to collapse and in that sense APA is well placed. It's the energy equivalent of the proverbial company that sells the picks rather than doing the mining, it's reasonably able to gain from an assortment of scenarios.
 
maybe some WANT society to collapse , and others are resigned to the probability that society will collapse due forces undermining it

but back to APA , it hasn't been removed from my target list ( of future buying )

but buy at what price ?
 
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