It’s been a rocky start to the day for the APA Group (ASX: APA) share price despite good news regarding the company’s Orbost Gas Processing Plant.
The plant’s operations were boosted over December and have continued strong into January.
Despite the positive update, the APA Group share price struggled in early trade. It opened higher than its previous close but quickly tumbled to a low of $9.97 – a 0.3% fall.
At the time of writing, the company’s stock is trading at $10.06, 0.5% higher than it was at the end of yesterday’s session.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.51%.
Let’s take a closer look at what’s likely moving the $11.8 billion gas transmission provider’s stock on Thursday.
What’s up with the APA Group share price on Thursday?
The APA Group share price has seemingly shaken this morning’s wobbles to trade on a slightly lower gain than the broader market.
The movements followed news from Cooper Energy Ltd. (ASX: COE). The gas and oil producer released an update on its operations, noting APA’s Orbost Gas Processing Plant – which is fed by Cooper Energy’s Sole gas field – saw its production increase 5% in December compared to that of November.
The average processing rate at the plant was 44.3 terajoules per day last month.
Excitingly, the boost has continued into the new year. The plant recorded a stable processing rate of 50 terajoules per day over the first 12 days of the year.
Though, that’s still less than its long-term expectations. The plant has a nameplate capacity of 68 terajoules per day.
December’s increase was due to optimisation of the gas plant’s process parameters.
Additionally, 2 two sulphur absorbers have been recently operating on a planned 21-day cleaning cycle. Continuing optimisation and monitoring could result in the cycle’s extension.
Finally, high demand for Cooper Energy’s gas has continued, with its average sales volume reaching 58 terajoules per day in December.
APA Group’s plant is processing shortfalls met through Cooper Energy’s backup gas supply arrangements and Otway Basin production.
While the APA Group share price seems to have just gotten its groove back, Cooper Energy’s shares have surged ahead.
Right now, they’re trading for 5% more than they were at yesterday’s close, swapping hands for 30 cents apiece.