Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Integrated oil and gas company TOTAL S.A. (TOT - Analyst Report) decided to sell a portion of its interest in Tempa Rossa Field, located in the Basilicata region of southern Italy. TOTAL will sell 25% of its interest in this field to Tokyo, Japan based Mitsui & Co. Ltd.’s Italian subsidiary Mitsui E&P Italia A S.r.l.

Even with the disposal of a 25% interest in this field, TOTAL will continue to be the operator with a 50% interest. Another 25% ownership of this field is held by Royal Dutch Shell plc. (RDS.A - Analyst Report). The entire reserve is estimated to be 440 million barrels of oil equivalents (boe).

This project presently in the development stage is expected to commence commercial operation from early 2016. The expected production capacity per day is 50,000 barrels of oil, along with 230,000 cubic meters of natural gas and 240 metric tons of LPG.

The entire cost for developing this project is estimated in the vicinity of $2.1 billion (€1.6 billion). TOTAL’s new partner will bear a portion of the development cost of the existing project. We believe such strategic moves will unlock value from TOTAL’s existing asset base and increase financial flexibility.

The present divestment syncs in with TOTAL’s asset disposal strategy for the 2012-2014 period. TOTAL is a global oil and gas major and continues to add, dispose and monetize properties to become more competitive. In 2012, TOTAL disposed of assets worth $5.9 billion (€4.6 billion), and has plans to divest more assets in 2013.

TOTAL S.A. currently retains a Zacks Rank #2 (Buy). We also prefer other Zacks #2 ranked stocks like YPF Sociedad Anonima (YPF - Snapshot Report) and Statoil ASA (STO - Analyst Report).

France-based TOTAL is one of the largest publicly traded, globally integrated oil and gas companies based on production volumes, proved reserves and market capitalization. The company has exploration and production operations spanning five continents.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%