CNOOC Limited (NYSE:CEO) announced its net production target of 422 million to 435 million barrels of oil equivalent (BOE) for 2014. The company expects 7 to 10 new projects to come on stream this year. Also, total capital expenditure of RMB 105 billion to RMB 120 billion has been estimated by the company.
Net production for 2013 is estimated at 412 million BOE, including 61 million BOE of production as a result of the company’s acquisition of Nexen in mid 2013.
CNOOC is one of the three leading oil companies in China and one of the largest independent oil and gas exploration and production companies of the world. It is China’s dominant producer of offshore crude oil and natural gas and engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. CNOOC Ltd. is the only company permitted to conduct exploration and production activities with international oil and gas companies off the shores of China.
The company’s growth profile should get a boost over the next 3 to 5 years from numerous development projects offshore China, international growth from recent acquisitions, and intensive exploration and development programs with its partners.
CNOOC’s growth will be augmented by significant capital injection into upstream activities in the next five years. The company believes that it will be able to maintain a 6–10% compound annual production growth rate over the next five years backed by various organic and inorganic measures and intends to invest $12 billion to $14 billion in 2013 to achieve its targeted growth rate.
Currently, CNOOC carries a Zacks Rank #4 (Sell). Meanwhile, one can consider better-ranked players in the same industry such as Crestwood Equity Partners LP (CEQP), Enbridge Energy Management LLC (NYSE:EEQ) and Summit Midstream Partners, LP (NYSE:SMLP). All these stocks currently carry a Zacks Rank #2 (Buy).