BP plc (BP - Free Report) and SDX Energy are in talks over oil and natural gas businesses in Egypt. Although BP hasn’t remarked on this yet, SDX Energy has confirmed the same.
Per the discussion, SDX Energy is willing to purchase energy properties. Notably, the British energy giant was looking for prospective buyers for its aging Egyptian crude and natural gas operations early in 2018, per Reuters. The assets were estimated at $500 million, per the source.
Reuters earlier announced that BP is planning to divest aging oil and gas developments to focus on Egypt’s new offshore projects of natural gas. The prospective deepwater developments will likely help the company maintain and boost output of the commodities.
Headquartered in London, BP has a strong portfolio of upstream projects that has been driving the company’s production.
In first-quarter 2018, total production rose 9% year over year to 2.605 million barrels of oil equivalent per day (MMBoe/d). Notably, since the October-to-December quarter of 2010, the first-quarter output has been the highest. Moreover, in the second quarter, total production rose 2% year over year to 2.465 MMBoe/d.
The company’s pricing chart looks impressive. BP has rallied 17.8% over the past year, outperforming the 10.9% collective gain of the stocks belonging to the industry.
Presently, BP carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are TC PipeLines LP (TCP - Free Report) , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Denbury Resources Inc. (DNR - Free Report) . TC PipeLines and Petrobras sport a Zacks Rank #1 (Strong Buy), while Denbury carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines has an average positive earnings surprise of 3.7% for the last four quarters.
Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.
Denbury beat the Zacks Consensus Estimate for earnings in each of the prior four quarters, the average beat being 162.9%.
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