Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Authors: Warren Buffett & Charlie Munger We have read APA's first-quarter 2026 10-Q carefully and thought hard about whether this is a business we would want to own forever. The honest answer is no. APA is a perfectly competent independent exploration-and-production company, but it is in the wrong business for the kind of investor we are. It sells a commodity it does not control the price of, on rocks it does not own forever, in countries that change the rules whenever they feel like it, financed with $4.4 billion of debt against $2.3 billion of consolidated current assets, and burdened with a $2.9 billion asset-retirement liability plus an $878 million contingent decommissioning hook for properties Apache sold thirteen years ago. None of that disappears with prayer.
Recent filings analysed: 10-Q (2026-08-06), 8-K (2026-08-05), 8-K (2026-07-08), 8-K (2026-05-26).
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