Exxon Mobil Corporation (XOM), Schlumberger Limited. (SLB), and More: This Week in Energy

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Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR)’s shares were in the green this week after its management outlined their plan to cut debt for the coming years. According to the blueprint, Petrobras will cut its capex/planned investment to $74.1 billion from $98.4 billion between 2017 and 2021. In addition, the company plans to divest around $19.5 billion in assets in 2017 and 2018. If all goes to plan, Petrobras’ net-debt-to-EBITDA should decline to a manageable 2.5x by 2018. Petrobras also made some waves in the week after it, and several other energy majors, were reportedly sued by the government of Nigeria for illegally exporting crude to the United States from 2011 to 2014. Nigeria is seeking $12.7 billion in lost revenues in total from all the oil companies. Given that Petrobras doesn’t have as big of an operation in Nigeria as other integrated companies, investors weren’t too concerned, and shares of Petrobras still managed to eek out a 0.77% gain for the week. Ken Fisher’s Fisher Asset Management inched up his stake in Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) by 3% in the second quarter to over 10.8 million shares.

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Last but not least, Oasis Petroleum Inc. (NYSE:OAS) slid by 0.76% and  SM Energy Co (NYSE:SM) gained 0.99% this week as WTI prices remained volatile. After seeing WTI rise earlier in the week due to another positive inventory report from the EIA, traders were even more optimistic when news hit the wires that Saudi Arabia had offered to cut its production levels somewhat in exchange for Iran freezing its production at current levels of around 3.6 million barrels per day. Although the situation would likely have been a win-win for both sides as both countries would have made more from oil due to higher prices, the two country’s geopolitical differences reared their ugly head. Crude fell sharply on Friday as Iran doesn’t seem to want to freeze and would like more lax measurements in the event of a freeze. Saudi Arabia has also said that it doesn’t expect a major agreement to come out from the meeting next week. However, whether that will be the case next week is anyone’s guess. According to our data, 20 and 33 funds were long SM Energy Co (NYSE:SM) and Oasis Petroleum Inc. (NYSE:OAS), respectively, at the end of June.

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Disclosure: none

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