The Zacks Analyst Blog Highlights: Southwestern Energy, Statoil ASA, Chesapeake Energy, Energy Transfer Partners and Petrobras

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Dec 31, 2014, 09:30 ET

CHICAGO, Dec. 31, 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 Southwestern Energy Co. (NYSE:SWN-Free Report), Statoil ASA (NYSE:STO-Free Report), Chesapeake Energy Corp. (NYSE:CHK-Free Report), Energy Transfer Partners L.P. (NYSE:ETP-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 both crude and natural gas prices plummeted to multi-year lows. Apart from that, the top story came from Southwestern Energy Co.'s (NYSE:SWN-Free Report) big push in the Marcellus and Utica plays.

Overall, it was a bad week for the sector. West Texas Intermediate (WTI) crude futures fell 4.2% to close at $54.73 per barrel, while natural gas prices slumped more than 13% to $3 per million Btu (MMBtu). (See the last 'Oil & Gas Stock Roundup' here: Exxon Strikes in Argentina, Shell Divests Norway Downstream Units.)

Oil prices continued the slide and fell for the fifth successive week. The commodity has been hammered since last month's decision by the OPEC oil cartel to maintain daily crude production level at the preset 30 million barrels, defying expectations of an output cut in response to the current supply glut.

Investors were further spooked by the U.S. Energy Department's latest inventory release that showed a surprise jump in crude stockpiles. Moreover, a stronger dollar has made the greenback-priced crude dearer for investors holding foreign currency.

Natural gas fared worse, dipping below $3 for the first time since Sep 2012. The severe drop in prices has been driven in large part by expectations of modest winter heating demand and abundant supplies.

Recap of the Week's Most Important Stories

1. Houston-based Southwestern Energy Co. inked a purchase and sale agreement for an undivided 20% of Norway's Statoil ASA's (NYSE:STO-Free Report) ownership in oil and gas assets in West Virginia and southwest Pennsylvania. The deal, worth $394 million, is likely to close in early 2015 and will possibly be financed from the company's revolving credit facility. The to-be-bought properties are spread over 30,000 net acres and increases Southwestern's overall working interest in the assets to approximately 73%, up by about 5.8%.

This announcement comes a day after the company closed a nearly $4.98 billion deal to acquire Oklahoma City-based Chesapeake Energy Corp.'s (NYSE:CHK-Free Report) interest in 413,000 acres in the Marcellus and Utica shale plays. (See More: Southwestern Energy Buys More Marcellus, Utica Assets.)

2. Natural gas pipeline operator Energy Transfer Partners L.P. (NYSE:ETP-Free Report) and parent company, Energy Transfer Equity L.P. have received approval from their boards on the previously announced deal involving the sale of stake in the Bakken pipeline. The transaction – mutually beneficial to both the parties – will be effective from Jan 1, 2015 and is expected to close in Feb.

Per the deal, Energy Transfer Partners will acquire 45% stake in the Bakken pipeline project and will receive $879 million in cash and 30.8 million of its common units from Energy Transfer Equity. In exchange, Energy Transfer Equity would receive 40% stake in general partner interest and incentive distribution rights of Sunoco Logistics Partners L.P.

Also, per the agreement, both the parties will lower IDR subsidies to ETP from ETE. Energy Transfer Equity would pay $55 million less in 2015 and $30 million less in 2016. (See More: Energy Transfer Partners & Parent's Pipeline Stake Sale OK'd.)

3. NYSE-listed ADRs of Petrobras (NYSE:PBR-Free Report) gained around 3.5% following the announcement that it has achieved historical production levels. The Brazilian state-run energy giant said that on Dec 21 its oil and natural gas liquid (NGL) production reached 2.29 million barrels per day, breaking the previous record of 2.26 million.

The company further added that it has attained a daily operated production record of 2.47 barrels per day. Contribution from nine production systems – five of which came online last year and the remaining four this year – led to this production growth. (See More: Petrobras Production Reaches Historical High, Stock Gains.)

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

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