Apache Alpine High Play Needs 'Clarity,' Wells Fargo Says

Shares of Apache were slightly lower on Friday as Wells Fargo downgraded its rating on the shares to Market Perform from Outperform.
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Shares of Apache (APA) - Get Report were slightly lower on Friday as Wells Fargo downgraded its rating on the shares to Market Perform from Outperform.

Analysts at Wells Fargo say Apache's Alpine High discovery in the Delaware Basin in Texas has huge resource potential. But they believe there are still significant risks with this project like the capital and time required to build out needed infrastructure. They also said that even if the project is successful, there are a number of quarters before it's fully up and running.

Apache has already identified thousands of future drilling locations and estimates the net present value between $4 million and $20 million per well.

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