APA +1.41%: Delivered a solid result today that rightly supported the stock, with EBITDA up on both East and West coast pipeline networks thanks to higher tariffs, which are linked to CPI. There is a lot to like about APA and they’ll almost certainly play a key role in transporting renewables as we move down that path, but in the meantime, they remain a very dependable, high quality infrastructure business, which is now very rare on the ASX. They re-affirmed FY23 dividend guidance for 53cps and said capex would be in line with previously stated levels. The only issue is around valuation, priced on a margin over 10 year bond yields, it sits at ~1.10% whereas the historical premium is more like 2.8%.
MM likes APA nearer ~$10
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