NEW YORK (TheStreet) -- Apache  (APA) - Get Report stock is down by 5.84% to $50.15 in late morning trading on Wednesday, after the company rejected Anadarko Petroleum's (APC) bid to buy the company.

Apache is a Houston-based independent energy company that explores for and develops natural gas and crude oil. 

Anadarko Petroleum approached Apache, its competitor, about an acquisition, which Apache initially rejected, Bloomberg reported yesterday.

The proposed deal would have offered value-creation opportunities to shareholders of both companies, Anadarko said in a statement today.

"Our efforts to enter into a mutually acceptable confidentiality agreement for the purpose of exploring the merits of a potential transaction were summarily rejected and no discussions of substance occurred," CEO Al Walker said in a statement. 

Separately, TheStreet Ratings team rates APACHE CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate APACHE CORP (APA) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 325.2% when compared to the same quarter one year ago, falling from -$1,330.00 million to -$5,655.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, APACHE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.80%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 320.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • APACHE CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, APACHE CORP swung to a loss, reporting -$13.46 versus $5.95 in the prior year. This year, the market expects an improvement in earnings (-$0.83 versus -$13.46).
  • Along with the very weak revenue results, APA underperformed when compared to the industry average of 37.2%. Since the same quarter one year prior, revenues plummeted by 54.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: APA

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.