Integrated Oil Companies Posts -- BloggingStocks

integrated oil companies posts

Consider Petrobras, because market position matters

Posted Apr 23rd 2009 5:40PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy

It goes without saying that one of the sectors preferred in this space is the integrated oil sector, and when one can combine a demonstrated business model with a dominant market position, that's the equivalent of a baseball doubleheader, which is why Brazil-based Petroleo Brasileiro SA (NYSE: PBR), also known as Petrobras, is worth a review.

In general, analysts expect Petrobras' oil and gas production to increase about 2% in 2009. The company has proved reserves of 11.7 billion barrels of oil equivalent, 14,200 wells, and 5,970 gas stations.

Continue reading Consider Petrobras, because market position matters

You can look at gas prices and lament, or you can own Hess

Posted Apr 22nd 2009 9:09AM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy

As prices at the gas pump begin their later-if-not-sooner return to the stratosphere, you can sit there and lament, or you can own Hess (NYSE: HES).

Hess is an integrated oil and gas company with proved reserves totaling 1.4 billion barrels of oil equivalent. Hess also sells gasoline through about 1,400 gas stations, primarily in the eastern U.S.

Continue reading You can look at gas prices and lament, or you can own Hess

Exxon-Mobil: Stand aside, due to weak U.S. gasoline demand

Posted Apr 16th 2009 6:00PM by Joseph Lazzaro (RSS feed)
Filed under: Exxon Mobil (XOM)

In this market, with its tumult and Dow-stocks-turned-into-dollar-menu-stocks, there are stock plays you jump at, and then there are plays that must wait for another day.

Put Exxon-Mobil Corporation (NYSE: XOM) in the latter category. Likely U.S. fuel demand declines (doesn't that sound funny?) for at least much of 2009, and probably into 2010, will weigh on refining/gasoline revenue.

Continue reading Exxon-Mobil: Stand aside, due to weak U.S. gasoline demand

Consider Chevron (CVX), because the U.S.'s romance with the car continues

Posted Feb 15th 2009 8:40AM by Joseph Lazzaro (RSS feed)
Filed under: Chevron Corp (CVX), Stocks to Buy

A new U.S. administration's promise to create a more self-reliant, energy-independent nation and the impact of efforts to first limit, then eliminate global warming from fossil fuels opens the door to alternative energy source development.

But, as Saudi Arabia reminds us, barring a breakthrough technology, fossil fuels with remain a major energy source for the world for at least the next thirty to 50 years. In other words, the U.S.'s romance with the car lives: it's merely paused, not ended.

Oil is down now, but it's not out and it isn't going away anytime soon, which is why risk-tolerant investors should consider Chevron.

Continue reading Consider Chevron (CVX), because the U.S.'s romance with the car continues

Petroleo Brasileiro: Profit from those rising prices at the gas pump

Posted Jun 26th 2008 6:15PM by Joseph Lazzaro (RSS feed)
Filed under: Brazil, Stocks to Buy

Readers of this space know that one argument I forward here is that in the era of elevated energy prices, oil/natural gas companies are likely to remain promising plays for the foreseeable future, barring the discovery of a cheap, widely-available, alternative energy. And among oil/natural gas companies, Petroleo Brasileiro is worth a review.

Petroleo Brasileiro SA Petrobras (NYSE: PBR) is Brazil's largest industrial operation, with oil/gas production, refining and purchasing businesses, and oil/gas transport services.

(Note: Petroleo's shares split 2-for-1 in May 2008.)

Analysts really like PBR's proved reserves of 15 billion barrels of oil equivalent, 12,900 wells, 16 refineries, 31,000 kilometers of pipeline, and astounding 5,870 gasoline stations. Further, analysts see 2008 production rising about 11-14%. The Reuters F2008/F2009 EPS consensus estimates for PBR are $4.91/$5.03.

The risks? Analysts have their eye on PBR's operating costs. Also, PBR's concentration in Brazil means a downturn in that country's economy will hurt results.

Stock Analysis: Petroleo Brasileiro is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from PBR's shares. Sell / Stop Loss if you were to purchase shares in this company: $78.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Petroleo Brasileiro has the economies of scale investors like

Posted Jan 7th 2008 6:55PM by Joseph Lazzaro (RSS feed)
Filed under: Brazil, Oil, Stocks to Buy

Readers of this space know that one argument forwarded here is that in the era of elevated energy prices oil/natural gas companies are likely to remain promising plays for the foreseeable future, baring the discovery of a cheap, widely-available, alternative energy source. And among oil/natural gas companies, Petroleo Brasileiro is worth a review.

Petroleo Brasileiro S.A. (ADR) (NYSE: PBR) is Brazil's largest industrial operation, with oil/gas production, refining and purchasing businesses, and oil/gas transport services.

Analysts like PBR's proven reserves of 15 billion barrels of oil equivalent, 12,900 wells, 16 refineries, 31,000 kilometers of pipeline, and 5,870 gasoline stations.

Continue reading Petroleo Brasileiro has the economies of scale investors like

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