Petróleo Brasileiro S.A. - Petrobras PBR recently moved ahead with the divestment procedure of 25% of its minority interest in the Tartaruga field by initiating the binding phase of the proceedings. The company started the divestment procedure in November 2024 with the opportunity disclosure, also known as the teaser stage. This stage revealed the main components of the transaction and the eligibility criteria for selecting potential buyers.
PBR has advanced the sale proceedings with the binding phase, where qualified buyers will receive an invitation letter with detailed instructions for the ongoing process. It is also conducting due diligence and submitting the final binding proposals.
Overview of Tartaruga Field
The Tartaruga Field is located on the northern coast of the State of Sergipe, in the town of Pirambu-SE, in the shallow waters of the Sergipe-Alagoas Basin. The field is held jointly by SPE TIETA, a company controlled by Petrorecôncavo, holding a 75% operating interest and Petrobras owning a minority stake of 25%. The wells were directionally drilled from a land-based facility within the field. Based on the 2024 average, Petrobras’ share of production from the field was about 41 barrels of oil per day (bpd) and 689 cubic meters a day of associated gas.
Reason Behind PBR’s Divestment Decision
Petrobras holds a minority stake of 25% in the field, which makes it a non-core asset within PBR’s portfolio. Moreover, the Tartaruga field is a non-operated asset that does not generate any synergies for the company’s assets. Therefore, with the sale of this asset, PBR intends to streamline its portfolio and focus on high-return assets.
A Step Forward in PBR's 2025-2029 Vision
PBR’s divestment in the shallow water project aligns with its 2025-2029 business plan, which intends the company to invest in deepwater projects like the Sergipe Deepwater area. Notably, Petrobras is contracting to deploy two Floating Production Storage and Offloading vessels in the Sergipe Deepwater area.
PBR’s Zacks Rank and Key Picks
Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil. Currently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like ARC Resources Ltd. AETUF, Equinor ASA EQNR and Gulfport Energy Corporation GPOR. While ARC Resources and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, Gulfport Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for the next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Headquartered in Stavanger, Norway, Equinor is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. EQNR’s expected EPS growth rate for the next five years is 5.30%, which aligns favorably with the industry growth rate of 5%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
Arc Resources Ltd. (AETUF) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
