Investors Cautious on Challenging Conditions in Latin American Oil Market: A Wall Street Transcript Interview with Vinicius Canheu, CFA, Director of Latin America Equity Research at Credit Suisse Group

Wall Street Transcript

67 WALL STREET, New York - February 13, 2014 - The Wall Street Transcript has just published its Oil & Gas: Exploration & Production Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Domestic Crude Prices - Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Offshore Deepwater Oil Discoveries - Offshore Capex Growth

Companies include: Petroleo Brasileiro (PBR), YPF S.A. (YPF), Chevron Corp. (CVX) and many others.

In the following excerpt from the Oil & Gas: Exploration & Production Report, an expert Credit Suisse analyst discusses the outlook for oil companies in South America for investors:

TWST: Tell us a little bit about your coverage.

Mr. Canheu: Right now, all of our coverage is mostly focused on Brazil. The main name in that space, the Brazil oil and gas space, is Petrobras (PBR). In Brazil we also cover QGEP (QGEP3.SA) and HRT (HRTP3.SA). In Argentina, we cover YPF (YPF). In Colombia we co-cover Pacific Rubiales (PRE.TO). We used to cover OGX (OGXP3.SA), but that company is now in Chapter 11 so we are no longer following it.

TWST: YPF is interesting because of the move by the Argentine government to nationalize it. How did that impact the company?

Mr. Canheu: Government nationalization of YPF had a major negative impact on the company's outlook and investor's perception. The most intriguing part is the fact that if you look at the share price today, it is at the same level it was prior to expropriation. What is also interesting right now with YPF, and specifically with the YPF stock, is that the market is already assuming that there will be an improvement in the outlook for Argentina. We actually were caught by surprise with the strength of the recovery of the share price there. We had been anticipating a collapse after expropriation, because that would have been very obvious. It happened, but the bounceback was much quicker than we thought. The recovery that we saw last year, it was pretty amazing, because the market was already anticipating a change in the political situation there.

The biggest move in the stock happened...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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