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Petroleo Brasileiro S.A.- Petrobras (PBR) - free report >>
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Petroleo Brasileiro S.A.- Petrobras (PBR) - free report >>
Sunoco LP (SUN) - free report >>
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Petrobras Eyes African Oil to Boost Reserves as Output Decline Looms
Petrobras S.A. (PBR - Free Report) , the Brazilian state-owned oil and gas company, has stated that it intends to purchase stakes in certain oil assets in Africa. The company mentioned that it is targeting oil assets, particularly in Angola, Namibia and South Africa. The move is aimed at replenishing PBR’s reserves as it expects a fall in its output after 2030.
Petrobras mentioned that it is currently discussing the purchase of these assets from other companies as well as its existing partners in Brazil, including ExxonMobil Corporation, Shell plc and TotalEnergies. Sylvia dos Anjos, director of PBR’s exploration and production division, mentioned that buying the stakes from the company’s partners in Brazil is a strategic choice within its portfolio as this offers an economic advantage to its operations.
PBR aims to reach a production level of 2.8 million barrels per day (bpd) in 2025. By 2029, the company plans to increase its output to 3.1 million bpd. Its current reserves of oil, condensate, and natural gas totaled 11.4 billion barrels of oil equivalent (boe) in 2024. The figure reflects an increase from 10.9 billion boe reported in 2023.
Petrobras deems its projects as “sustainable” in the current oil price environment. Its low-cost operations at a price of $45 per barrel indicate that these projects should remain profitable even in a low commodity price environment.
PBR’s Zacks Rank and Key Picks
PBR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energysector are SM Energy (SM - Free Report) , Sunoco LP (SUN - Free Report) and Archrock Inc. (AROC - Free Report) . SM Energy currently sports a Zacks Rank #1 (Strong Buy), while Sunoco and Archrock carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The increased production, combined with the favorable oil price environment, is expected to positively contribute to its bottom line.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.