For Immediate Release
Chicago, IL – February 10, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include PetroChina Co. Ltd. ( (PTR - Free Report) , Royal Dutch Shell plc ( (RDS.A - Free Report) , Encana Corp. ( (ECA - Free Report) , Sinopec ( (SNP - Free Report) and CNOOC Ltd. ( (CEO - Free Report) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: https://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
PetroChina Buys into Canadian Asset
Chinese energy giant PetroChina Co. Ltd. ( (PTR - Free Report) inked an asset acquisition deal with Royal Dutch Shell plc ( (RDS.A - Free Report) . Per the agreement, PetroChina purchased 20% stake in a Canadian shale gas project – Groundbirch – from Shell. However, neither of the companies disclosed the financial terms of the deal.
Located in northeastern British Columbia, Shell owns 100% interest in the Groundbirch project that holds a production capacity of 1 billion cubic feet equivalents (bcfe) per day and has an estimated producing life of 40 years.
Even after the deal, Shell will continue to act as the operator of the venture. While PetroChina will evaluate the export potential of the fuel in the form of liquefied natural gas to Asia, Groundbirch will continue to meet customer demands in North America.
This acquisition will enhance PetroChina’s footing on the Canadian ground and pave way for future investment opportunities. After the collapse of a natural gas agreement with Encana Corp. ( (ECA - Free Report) last year, PetroChina remains highly optimistic about this deal. The company also plans to import updated technologies from overseas to apply for better drilling in domestic oil fields.
Of late, many Chinese firms are making their presence felt in the North American oil and gas industry. In October 2011, state-controlled China Petroleum and Chemical Corporation, or Sinopec ( (SNP - Free Report) agreed to acquire Calgary, Alberta based Daylight Energy Ltd. for about C$2.2 billion (US$2.1 billion). In another transaction, CNOOC Ltd. ( (CEO - Free Report) closed the acquisition of Canadian oil sands operator OPTI Canada Inc. for $2.1 billion in November last year.
China’s impressive economic growth has significantly increased its demand for oil, natural gas and chemicals. This growth momentum presents attractive opportunities for industry players to meet the country’s fast-growing energy needs. Being a major integrated oil company in China, PetroChina is well positioned to capitalize on these favorable trends.
However, we are concerned about the company’s oil production growth prospects, considering its heavy exposure to significantly mature producing areas. Other near-term headwinds include high-priced gas imports in the face of low domestic gas sale prices, regulatory uncertainty and an ambitious investment program.
Consequently, we see PetroChina ADRs performing in line with the broader market and maintain our long-term Neutral recommendation. PetroChina currently retains a Zacks #3 Rank (short-term Hold rating).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: https://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: https://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at https://at.zacks.com/?id=5518.
Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339