The APA Group (ASX: APA) share price is surging higher on Monday, hitting a new 52-week high in the process.
In intraday trade the company’s stock rose to trade at $10.62 – the highest it’s been since November 2020.
At the time of writing, the APA share price is $10.54, 1.74% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.45% on Monday. Meanwhile, the All Ordinaries Index (ASX: XAO) is up 0.37%.
The energy infrastructure company’s gains come after an update on a hydrogen feasibility study it’s involved in.
Let’s take a closer look at what’s going on with the APA share price today.
Is this helping to boost APA’s stock today?
The APA share price is taking off today amid positive results from a feasibility study conducted in Australia’s Mid-West region.
The study is investigating the potential to produce clean hydrogen and ammonia. It’s also developing a multi-staged pathway to the commodity’s production.
It is made up of 4 feasibility studies, of which 2 are now completed, yielding positive results. The remaining 2 studies are expected to be finished in the coming weeks.
Some of the feasibility studies are being funded by a consortium made up of Pilot Energy Ltd (ASX: PGY), APA, and Warrego Energy Ltd (ASX: WGO).
So far, they’ve confirmed the opportunity to create a large-scale clean hydrogen production project for domestic and international markets.
Such a project would use carbon capture and storage and renewable energy generation.
Additionally, the S&P/ASX 200 Utilities Index (ASX: XUA)’s performance might be helping to buoy the APA share price on Monday.
The sector is recording a 0.74% gain at the time of writing. Right now, APA is its best performer.
APA share price snapshot
The APA share price has been outperforming the ASX 200 through 2022 so far.
The company’s shares have gained 3% since the start of this year, while the ASX 200 has fallen around 2%.
However, over the last 12 months, the company’s stock is up just 4% compared to the ASX 200’s 9% gain.
The post Why did the APA (ASX:APA) share price just ink a new 52-week high? appeared first on The Motley Fool Australia.
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More reading
- The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it?
- Are analyst upgrades on the way for APA (ASX:APA) shares?
- Here’s why the APA (ASX:APA) share price could be a top dividend share
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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