Oil & Gas Stock Roundup: BP's Project Approval, Petrobras' New Find
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It was a week when both oil and natural gas prices logged gains.The headlines revolved around European integrated energy company BP plc’s BP green signal to the Ginger gas project in Trinidad and Tobago, and Brazil-based Petrobras’ PBR hydrocarbon discovery in the Campos Basin. Developments associated with Excelerate Energy EE and TechnipFMC plc FTI also grabbed attention.Overall, it was a bullish seven-day period for the sector. West Texas Intermediate (WTI) crude futures moved up around 1.6% to close at $69.36 per barrel, while natural gas prices rose some 2% to end at $4.065 per million British thermal units (MMBtu).The crude price increase primarily resulted from concerns over declining Venezuelan and Iranian exports caused by U.S. sanctions. Meanwhile, the rise in natural gas prices could be attributed to limited production growth and strong LNG demand.Recap of the Week’s Most Important Stories1. BP, the UK-based energy major, has approved the development of the Ginger natural gas project offshore Trinidad and Tobago. This is one of the 10 major upstream projects that the company aims to bring online by 2027. The decision aligns with BP’s recent strategy reset, which involves increasing investment in oil and gas while scaling back spending on renewables.The final investment decision (FID) for the Ginger project, located 50 miles off Trinidad’s southeast coast, marks a milestone for BP’s regional expansion. Ginger, which will be BP Trinidad and Tobago’s fourth subsea development, will feature four subsea wells tied back to the existing Mahogany B platform. The first gas is expected in 2027, with peak production estimated to be 62,000 boed.The Ginger project complements BP’s broader strategy of maximizing production from its existing assets. Alongside Ginger, the Cypre gas project, scheduled to begin in 2025, will further boost output. BP highlighted that both developments align with its capital efficiency goals and expected returns in the upstream sector. (BP Approves Ginger Gas Project Offshore Trinidad & Tobago)2. Brazilian energy major Petrobras recently made a significant hydrocarbon discovery in the pre-salt region of the Campos Basin. The discovery was made in the 1-BRSA-1394-RJS well, located 105 kilometers off the coast of Rio de Janeiro at a depth of 575 meters. The company confirmed the presence of hydrocarbons via various initial assessment techniques, such as electrical logs, gas shows and fluid sampling. Further laboratory analysis will provide more details about the reservoir’s characteristics.Petrobras fully acquired the Norte de Brava block in December 2022, in the first cycle of the Open Acreage bidding round organized by the National Petroleum, Natural Gas and Biofuels Agency under the Production Sharing regime. This block is considered a vital asset in its pre-salt portfolio, with Pré-Sal Petróleo S.A. as the manager. The company holds a 100% working interest in the block and has completed drilling, with final wireline logging underway.Petrobras has earmarked $77.3 billion for its Exploration and Production segment over the next five years, with 60% dedicated to pre-salt assets. The Campos Basin discovery is part of this broader strategy, supporting Brazil’s ambitions in deepwater oil production. Beyond Brazil, Petrobras is also engaged in offshore exploration in Colombia, signaling its commitment to expanding its global footprint in energy exploration. (Petrobras Strikes Hydrocarbons in the Campos Basin's Pre-Salt Layer)3. Excelerate Energy, a U.S.-based LNG infrastructure provider, has entered into an agreement to purchase another LNG firm New Fortress Energy’s assets and operations in Jamaica. The deal will be financed entirely in cash for a total consideration of $1.055 billion and is anticipated to conclude by the June quarter of 2025.Excelerate Energy believes that the acquired assets align with its operational proficiency and should support the company’s existing LNG supply agreements in the long run. They also hold growth potential, including in LNG bunkering, which involves supplying LNG as a fuel for ships. The 150 MW Clarendon power plant that supplies nearly 65% of Jamaica’s electricity has scope for expansion, too.For New Fortress, this divestment to Excelerate Energy is part of a broader strategy to optimize its asset portfolio and reduce its debt burden. The company has been facing financial difficulties over the past year as it has started exploring options to ease the situation. This included attracting strategic partners or selling off a part of its assets. Amid the financial challenges, New Fortress had to pause shareholder dividend payments while meeting with bondholders to discuss its debt maturities in the short term. (Excelerate Energy to Acquire New Fortress Energy's Jamaica Operations)4. TechnipFMC, a global leader in subsea, onshore, offshore and surface technologies, has secured a significant integrated Engineering, Procurement, Construction and Installation (“iEPCI”) contract from London-based integrated oil and gas company, Shell, for its Gato do Mato greenfield development project offshore Brazil.With an estimated value exceeding $1 billion, this major contract marks a significant milestone in the longstanding collaboration between TechnipFMC and Shell, reinforcing their ability to deliver complex offshore projects with high levels of efficiency and innovation. The first quarter of 2025 will see the inclusion of this award in incoming orders.The Gato do Mato project, located in Brazil’s deepwater Campos Basin, is an important greenfield development for SHEL, aiming to enhance production in this prolific oil-producing region. As part of the contract, Houston, TX-based TechnipFMC will be responsible for the complete integrated execution of the development, utilizing its cutting-edge subsea technologies and experience. This includes providing all engineering, procurement, construction and installation services, alongside the implementation of Subsea 2.0 configure-to-order (“CTO”) production systems. (TechnipFMC Wins Major iEPCI Contract for Gato do Mato Offshore Brazil)Price PerformanceThe following table shows the price movement of some major oil and gas players over the past week and during the last six months.Company Last Week Last 6 MonthsXOM +1.9% -2.3%CVX +0.8% +10.4%COP +0.5% -3.8%OXY +1.9% -7.8%SLB +2.1% -3.8%RIG +0.3% -27%VLO +0.1% -1.5%MPC -3.9% -10.7%With oil and gas moving up for the week, stocks were mostly northbound. The Energy Select Sector SPDR — a popular way to track energy companies — rose 1.1% last week. But over the past six months, the sector tracker has gone up 3.6%.What’s Next in the Energy World?Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Excelerate Energy, Inc. (EE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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