The Zacks Analyst Blog Highlights: Kinder Morgan, TransCanada, Apache, Talisman Energy and Petrobras

News provided by

Nov 26, 2014, 09:30 ET

CHICAGO, Nov. 26, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Kinder Morgan Inc. (NYSE:KMI-Free Report), TransCanada Corp. (NYSE:TRP-Free Report), Apache Corp. (NYSE:APA-Free Report), Talisman Energy Inc. (NYSE:TLM-Free Report) and Petrobras (NYSE:PBR-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

Oil & Gas Stock Roundup

It was a week where shareholders gave the go-ahead to Kinder Morgan Inc.'s (NYSE:KMI-Free Report) $70 billion mega-deal to consolidate its four related pipeline entities into one, while TransCanada Corp.'s (NYSE:TRP-Free Report) Keystone XL pipeline suffered another setback.

Overall, it was a bullish week for the sector. West Texas Intermediate (WTI) crude futures snapped a seven-week losing streak and inched up 0.9% to close at $76.51 per barrel, while natural gas prices gained 6.1% to $4.27 per million Btu (MMBtu). (See the last 'Oil & Gas Stock Roundup' here: Halliburton, Baker Hughes Merge to Create Oilfield Heavyweight.)

Oil prices finally halted their weekly losses and ended higher on Friday after China's central bank and ECB's efforts to stimulate their economies boosted investor hopes for increased global demand. Oil traders got further fillip from positive data out of Germany.

Natural gas also fared well following the first storage drawdown of the winter. The commodity was also buoyed by expectations of strong heating demand across the U.S. with forecasts of frigid weather.

Recap of the Week's Most Important Stories

1. Houston, TX-based oil and gas pipeline company Kinder Morgan Inc. announced that it got shareholder approval for its $70 billion mega-deal to consolidate its four related pipeline entities into one. The intended acquisition, first announced by Kinder Morgan on Aug 10, 2014, also entails the purchase of all the outstanding equity securities of its three subsidiaries – Kinder Morgan Energy Partners L.P., Kinder Morgan Management LLC and El Paso Pipeline Partners L.P.

At special meetings held by the parent company and the three partnerships, unitholders and shareholders overwhelmingly approved all proposals related to the merger. In all the four special meetings, more than 95% of the votes cast were in favor of the merger transactions. (See More: Kinder Morgan Gets Shareholder Approval for Pipeline Merger.)

2. Pipeline operator TransCanada Corp.'s controversial Keystone XL pipeline witnessed another setback after the U.S. Senate narrowly rejected a bill to approve the network's connection between Canadian oil sands and Gulf of Mexico.

The Keystone XL pipeline, if approved, would connect the oil sands of Alberta to the U.S. Gulf. It would run up to 1,179 miles and carry up to 830,000 barrels of oil per day. The first three phases of the $5.4 billion pipeline have been built already. But while the network started operating in 2010, the Keystone XL portion of the system – that runs 800 miles through Montana, South Dakota and Nebraska, and requires U.S. approval – is still nowhere near finalization even after 6 years of assessment amid oil-versus-environment debate.

3. U.S. energy firm Apache Corp. (NYSE:APA-Free Report) declared that it will divest its interest in some non-core oil and natural gas properties in southern Louisiana and Anadarko Basin for roughly $1.4 billion. The assets will be sold to undisclosed buyers in two separate transactions, expected to be completed by the end of this year. Apache has decided to use the proceeds from the assets sale for acquiring leases on prime growth plays.

The company also announced its intention to spend roughly $4 billion on onshore upstream operations in North American fields in 2015, almost 26% less than the previously declared amount of $5.4 billion. (See More: Apache Gains from Plan to Sell $1.4B Worth Non-Core Assets.)

4. An affiliate of Canadian energy explorer Talisman Energy Inc. (NYSE:TLM-Free Report) and the Columbian state-owned company Ecopetrol S.A. have discovered hydrocarbons in block CPO-9, Columbia. This is the second find in the block for the parties. Shares of Talisman gained over 3% following this announcement.

The discovery has been made through the exploratory well Nueva Esperanza-1. The well attained a depth of 12,056 feet on Sep 26, after being spudded on Jul 18. The company announced that the during an initial testing for eight days, the well yielded 910 barrels of daily flow rate, with 8° API. Both the parties plan to carry out long-term tests on the exploratory well. (See More: Talisman Shares Gain on 2nd Discovery in CPO-9, Columbia.)

5. Brazilian state-run energy giant Petrobras (NYSE:PBR-Free Report) announced that its Cidade de Ilhabela offshore platform, located at Sapinhoa oil field, has commenced operations. The Sapinhoa field is situated in the pre-salt Santos basin, off the coast of Brazil. Following the announcement, Petrobras ADR rose above 11% in the NYSE last Friday, two days after the company touched 52-week low of $8.80 per ADR.

The platform was set up by Petrobras at a water depth of roughly 2,140 meters. The company believes that the platform will produce roughly 150,000 barrels of oil every day and store roughly 1.6 million barrels of crude. The offshore platform will also compress natural gas at the rate of 6 million meters per day. (See More: Petrobras Rises as Cidade de Ilhabela Platform Comes Online.)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on KMI - FREE

Get the full Report on TRP - FREE

Get the full Report on APA - FREE

Get the full Report on TLM - FREE

Get the full Report on PBR - FREE

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-zacks-analyst-blog-highlights-kinder-morgan-transcanada-apache-talisman-energy-and-petrobras-300001581.html

SOURCE Zacks Investment Research, Inc.