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Oswald Clint, Senior Research Analyst at Sanford C. Bernstein & Co., LLC, Interviews with The Wall Street Transcript: Flat Oil and Gas Prices Drive Volume Growers

67 WALL STREET, New York - June 28, 2013 - The Wall Street Transcript has just published its Oil & Gas Review 2013 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: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: BP plc (BP), Total SA (TOT), Petroleo Brasileiro (PBR) and many more.

In the following excerpt from the Oil & Gas Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Can you begin with a brief overview of your coverage of the oil and gas sector, including some of the specific names you follow?

Mr. Clint: I'm the European oil and gas Analyst at Sanford Bernstein, covering large-cap European integrated oil companies such as BP (BP), Shell (RDS-A) and Total (TOT), but I'm also responsible for the large-cap Russian oil and gas companies and a couple of smaller exploration and production companies focused in Europe such as Tullow Oil (TLW.L) and Premier Oil (PMO.L).

TWST: You cover the European majors and E&Ps and Russian oil and gas stocks. Which of those segments of the sector are you most bullish about at the moment and why?

Mr. Clint: It's a good question. If I believed oil prices are going to continue to increase on an annual basis, I would be recommending Russian oil and gas stocks and exploration and production oriented stocks, because they have better leverage to the commodity price environment, because that's accretive to their earnings and cash flows. However, that's not my current view. I believe oil prices are going to be flat from at today's levels though for the next three, four years, and in that environment, it's a bit more focused, you have to try and find volume growth. So the commodity's not going to help us, hence you need to find volume growth. So within my universe, the highest-growth names - that happens to be companies such as Total, the French integrated oil companies, and other companies BG Group (BG.L), Repsol (REP.MC), Galp (GALP.LS). Those four names are my favorite names at this point in time.

TWST: What makes Brazil attractive for oil and gas, and which companies have the most exposure there?

Mr. Clint: So Brazil, it has 30 years of offshore production, so it's not a newcomer to oil and gas production such as its neighbors like French Guiana, Suriname and maybe potentially Uruguay, which has a new area of exploration. Brazil is grounded in three or four decades of offshore exploration and production, so they have an established industry, which is important, and they have an established fiscal regime for the upstream. It hasn't changed for 13 years, which I think is important.

I mean, upstream taxes have not been altered by the government. That's relatively stable to be honest. I mean, the only country that's never changed practice in about 40 years is Norway. But if you're in the U.S. or in the U.K., to be honest, in the last 13 years, they've seen multiple changes by both of those two regions. So I think that's important because in several non-OECD nations, you have a very risk of tax and fiscal regime change. That up until this point hasn't been the case in Brazil.

So why do I like it? They have the...

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.