Petrobras: Expanding Production At Attractive Breakeven Economics (Archive)
Petrobras is ramping low-cost upstream production, positioning for volume-driven upside despite flat oil prices.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Petrobras is due to increase upstream production at attractive low-cost economics.
- The 2025 outlook for oil prices shows little scope for pricing-related upside. So volume growth is likely to be the key fundamental driver for the year ahead.
- Valuations are at an attractive 27% discount vs. peers from a 1-yr fwd EV/EBITDA perspective.
- The PBR vs. SPX500 monthly charts show a bullish outlook emerging from support levels.
- A reversal in falling EBITDA expectations would prompt me to add size to buy positions.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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