William Blair: First rated oil companies such as Apache Corporation (APA.US) as "outperforming the market", with expectations of a significant increase in free cash flow in the next two years.

William Blair analyst Neal Dingmann published a research report, covering Apache Corporation (APA.US), Coterra Energy (CTRA.US), and Ovintiv (OVV.US) for the first time, and gave them an "outperform" rating. In the report, the firm stated that although Apache Corporation's asset quality in the Permian Basin had been questioned by some investors, Dingmann believed that its asset size, combined with several other large operating areas, presented a unique investment value. He noted that the Egyptian natural gas block had significant growth potential due to previous underdevelopment and significant improvement in pricing structure; meanwhile, the Suriname region was expected to have abundant recoverable resources, with drilling operations expected to start by the end of next year. The analyst predicted that Apache Corporation would generate nearly $1.4 billion in free cash flow in 2026, increasing to $1.7 billion in 2027. Regarding Coterra Energy, Dingmann stated that the company continued to demonstrate its operational efficiency in the Delaware Basin through the Windham Row project, covering a total of 73 wells across six drilling spacing units. Additionally, the Barba Row project with 28 wells and the Bowler Row project with 48 wells were also set to come online soon. He predicted that assuming relatively stable oil and gas prices in 2026 and a slight increase in 2027, the company would generate approximately $2.9 billion in free cash flow in 2026, increasing to $3.9 billion in 2027. As for Ovintiv, Dingmann's analysis indicated that the company had built a high-quality asset portfolio centered around the Permian Basin and Montney formation. Through internal growth and external acquisitions to boost production and reserves, the company always focused on optimizing its balance sheet - if its onshore assets were successfully sold, its net debt could drop below $4 billion. He projected that the company would generate $1.7 billion in free cash flow in 2026, increasing to $2.4 billion in 2027.