We have left APA until last because we have reviewed the stock several times over the past six months. In February, the stock significantly exceeded market expectations, and in particular, APA stated that it could internally fund its planned $1.8 billion organic growth programme over the coming three years without a capital raise. APA is now expected to yield +7.3 % over the next 12 months, growing steadily over the coming decade. With expectations of a cash rate nearer 3.5% by Christmas, the attraction is obvious.
APA is Australia’s largest natural gas infrastructure company, generating revenue through the ownership, operation, and management of energy infrastructure assets, including gas pipelines, electricity networks, and renewable energy facilities, a diverse suite of reliable, regulated income streams. At MM, we like how APA Group is enhancing its infrastructure, supporting Australia’s energy transition, and positioning itself for sustainable growth in the evolving energy landscape through projects such as its Port Hedland Solar and Battery Project, the Chichester Solar Gas Hybrid Project and the Parmelia Green Hydrogen Project.
- We can see APA testing $9 through 2025/6, and as such, it’s currently our preferred yield play, especially if we see a dip back toward $7.50 —MM holds APA in our Active Growth Portfolio and Active Income Portfolios.
MM is long and bullish APA
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