Petróleo Brasileiro S.A. - Petrobras PBR, a leading oil company in Brazil, experienced an 11% drop in its production levels in October from the same month in 2023. With PBR accounting for most of the country’s output, Brazil’s oil regulator, ANP, also reported that Brazil’s overall oil production dropped by 7.8% in October, reaching 3.268 million barrels per day. The decline in production levels was due to the scheduled shutdown at major oil fields like Buzios and Tupi.

How the Shutdown Affected PBR

Two platforms in the Buzios oil field, where PBR has majority control, experienced two scheduled shutdowns of more than 15 days with some minor halts at the Tupi oil field. The Tupi oil field is operated by PBR in collaboration with other oil majors like Shell and Galp.

As a result of these shutdowns, PBR’s oil and gas production fell to 2.585 million barrels of oil equivalent per day (boed) from 2.91 million boed in the same month last year.

PBR’s Way Ahead

Despite these challenges, PBR will look to achieve its projected average production of 2.8 million boed for 2024, with a 4% variation margin. This forecast highlights the company's commitment to stabilizing and enhancing its production capabilities and facing the challenges of these shutdowns.

Meanwhile, Brazil's natural gas production totaled 158.86 million cubic meters per day in October, reflecting a 4.2% increase from its 2023 levels.

PBR’s Zacks Rank and Key Picks

Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Mach Natural Resources LP MNR, Flotek Industries, Inc. FTK and Targa Resources Corp. TRGP.While Mach currently sports a Zacks Rank #1 (Strong Buy), Flotek Industries and Targa Resources each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mach Natural Resources LP is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 205.56% year-over-year growth.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.

Houston, TX-based Targa Resources Corp. is a premier energy infrastructure company and a leading provider of integrated midstream services in North America. The Zacks Consensus Estimate for TRGP’s 2024 earnings indicates 71.58% year-over-year growth.

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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

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