APA's Growth Plans, page-48

With companies, such as APA (SYD, TCL are another 2) the market including many analysts, fundies and others connected to them, forget IMHO that the APA cash flow can't really deteriorate too far even with pending potential regulation and the effect of higher interest rates on the debt is usually hedged as a mandatory matter of course.

In fact, hedging the rate of the debt is usually a requirement either soft or hard put out by the banks, which are the lenders, of companies such as APA.

So the only question is rate of dividend growth, the PE is a useless statistic, the only thing to be concerned about is dividend yield and growth in earnings. The debt and the comparative short to medium term rate is pretty much a constant.

APA is making hay while the rates are low to gain and complete pipeline assets (that the ACCC thinks are monopolistic and if APA gains them and manages them well cyclically as only APA with pre-existing pipeline assets can afford to take on the debt.

Once completed, the assets become cash cows or more aptly dividend cows IMHO but pls DYOR.

APA has been sold off too much as the market reacts to the downside. APA are all oversold IMHO and it is FOMO time which is not to say there is not a little more SP weakness in store for them as markets overreact and it is notoriously hard to bottom pick.

All of the energy issues caused by the SA power grid failing, the Transgrid issues faced by the NSW Government and the energy security and pricing issues faced in Queensland and Victoria make APA a fantastic play.