Tear Sheet: APA Infrastructure Ltd.

APA Group Ltd. (rated entity APA Infrastructure Ltd [APA]) generates cash flow primarily from regulated and highly contracted gas transmission assets with an average contract life of about 10 years. The group benefits from no exposure to commodity price risk and generally low operating risk. We forecast APA's ratio of funds from operations (FFO) to debt will be 9.5%-9.7% over the next three years as the group continues to invest in growth projects. APA Group is on track to invest about A$600 million in capital expenditure (capex) for growth in fiscal 2025 (ending June 30, 2025). Key projects in fiscal 2025 include the Port Hedland solar and battery project, Kurri Kurri lateral pipeline, and east coast gas grid expansions. The

...Rating Component Scores Foreign currency issuer credit rating ###/Stable/-- Local currency issuer credit rating ###/Stable/-- Business risk Excellent Country risk Very Low Industry risk Low Competitive position Excellent Financial risk Aggressive Cash flow/leverage Aggressive Anchor ### Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ###...

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