This Week In Oil: Petrobras, Kinder Morgan & More

The merger between Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) ran into some more roadblocks this week, as the Department of Justice notified the two oil service companies on Tuesday that their concessions to please the government’s anti-trust concerns were not enough. Halliburton Company (NYSE:HAL) has committed to selling assets that bring in as much as $7.5 billion in annual revenues to make the merger with Baker Hughes work, and will likely need to commit to sell more. The two companies have extended the deadline to close the deal by April 30, 2016. Jeffrey Ubben’s ValueAct Capital is a big shareholder of both companies.

In the long-run these stocks and the whole energy sector are likely to bounce back, but their short-term performance is uncertain, as investors clearly worry about supply and demand more than the long-term industry fundamentals.

Disclosure: none