Petrobras (PBR) to Buy Assets After Decade-Long Divestitures
Petrobras (PBR), the state-owned oil and gas company of Brazil, is now planning to purchase assets following a decade-long divestiture of its oil blocks and refineries, per Bloomberg report.
Sergio Caetano Leite, the chief financial officer of Petrobras, stated in an interview that Petrobras could be prepared for an acquisition owing to reduced debt and improved cash flow. Leite said that Petrobras could "take a bigger step" now that it is supported by robust cash generation and low production costs.
At the end of the first quarter of 2023, Petrobras recorded (in May) gross debt of $53.3 billion, the lowest since 2010.
Last week, the company released its first benchmark-size bond deal in two years. Leite emphasized that despite PBR’s heightened interest in mergers and acquisitions, it is unlikely that the firm will issue a lot of bonds to finance acquisitions or increase investments. He added that the demand for last week’s issue indicated the possibility of further similar deals.
According to PBR’s CEO Jean Paul Prates, the company intends to launch more than a dozen production platforms in the pre-salt region by 2027. Petrobras also inked a natural gas purchase and sale agreement with Companhia de Gás de Pernambuco earlier this month.
Zacks Rank & Key Picks
Currently, Petrobras carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs.
EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream.
NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
RGC Resources Inc. (RGCO) : Free Stock Analysis Report
