Petrobras (PBR) Increases Oil and Gas Output by 3.7% in 2023
Petrobras PBR, a Brazilian state-run oil company, reported a significant surge in its 2023 output. According to a recent securities filing, Petrobras' daily output rose to an impressive 2.78 million barrels of oil equivalent per day (boepd) in the previous year, marking a robust 3.7% increase from the 2022 level.
Production Breakdown
Commercial Production Highlights: Production of oil and natural gas reached a formidable 2.44 million boepd, with oil production alone totaling an impressive 2.24 million barrels per day (bpd). This remarkable achievement is attributed to the successful ramp-up of four offshore platforms, per Petrobras' November projection.
Proven Reserves Growth: PBR has not only boosted its production but also increased its proven oil, condensate and natural gas reserves by 3.8%, reaching 10.9 billion barrels of oil equivalent in 2023, up from 10.5 billion boe in 2022. Of this substantial reserve, 84% comprises oil and condensate, while the remaining 16% constitutes natural gas.
Hydrocarbon Discoveries in Equatorial Margin: A key moment for Petrobras includes the discovery of hydrocarbons in its first Equatorial Margin well, Pitu Oeste. Situated approximately 52 kilometers off the coast of Rio Grande do Norte state, this location is part of a potentially oil-rich region extending along the Brazilian coast from Rio Grande do Norte to Amapa states.
While the discovery is monumental, Petrobras remains cautious about declaring its economic viability conclusively. The company confirmed its findings but did not make firm statements about the project's feasibility.
Strategic Plans and Investments
Upcoming Drilling Endeavors: Undeterred by uncertainties, Petrobras gears up for further exploration. The company is set to drill a second well, approximately 79 kilometers off the coast of Rio Grande do Norte and in proximity to Pitu Oeste. This strategic move aligns with Petrobras' commitment to unlocking the full potential of the Equatorial Margin.
Investment Outlook: Under Petrobras' ambitious 2024-2028 strategic plan, a substantial investment of $3.1 billion is reserved for oil and gas research in the Equatorial Margin. The company envisions drilling a total of 16 wells during this period, signaling a resolute commitment to harnessing the region's energy resources.
Conclusion
Petrobras' notable achievements in production, reserve growth and hydrocarbon discoveries paint a promising future for Brazil's energy sector. The company's strategic plans highlight its commitment to innovation and exploration, setting the stage for sustained growth in the years to come.
Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Sunoco LP SUN and Oceaneering International, Inc. OII, both sporting a Zacks Rank #1 (Strong Buy), and Enbridge Inc. ENB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Dallas, TX, Sunoco is valued at $5.85 billion. The company currently pays a dividend of $3.37 per share, or 5.78%, on an annual basis.
Sunoco, along with its subsidiaries, distributes and retails motor fuels in the United States. It operates under two segments — Fuel Distribution and Marketing and All Other.
Oceaneering International is worth $2.17 billion. In the past year, its shares have risen 3.7%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Enbridge is valued at $76.33 billion. The company currently pays a dividend of $2.6 per share, or 7.24%, on an annual basis.
Enbridge and its subsidiaries are an energy infrastructure company with five segments — Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation and Energy Services.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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