4 Energy Stock Stories Burning Up The News On Tuesday

Petrobras – Petroleo Brasileiro (NYSE:PBR): Closing price $13.73

Within 30 days, Brazil’s antitrust agency Cade is supposed to decide if the country’s oil company OGX, which is controlled by entrepreneur Eike Batista, and the state-run oil major Petroleo Brasileiro, or Petrobras, violated the antitrust law in an agreement announced in November. At that time, Petrobras revealed that it would divest its 40-percent interest in the BS-4 oil block to OGX at a price of $270 million. The block has two oil fields and is 185 kilometers offshore. Cade’s press office said via an email that the agency will see if the deal has been completed in violation of Brazil’s antitrust law.

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PBR

Occidental Petroleum Corp. (NYSE:OXY): Closing price $88.32

On Tuesday, Occidental posted a smaller-than-anticipated second-quarter profit, decreased by lower oil prices in the Middle East and North Africa, in which the oil company is mulling an exit. In April, Chief Executive Steve Chazen indicated that Occidental’s Middle East operations might be put on the block, and analysts also think the California division will be spun off. Chazen said Tuesday that a number of options for reshaping the firm were being explored by the board. Occidental said that oil and gas output volumes rose close to 1 percent in the second quarter, to 772,000 barrels of oil equivalent per day, because of surging production in Texas’ Permian Basin and in California.

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OXY

Kinder Morgan Energy Partners L.P. (NYSE:KMP): Closing price $82.45

Keyera Corp. and Kinder Morgan have announced a 50-50 joint venture to construct a crude oil rail loading facility in Edmonton, called the Alberta Crude Terminal. Once finished, the Alberta Crude Terminal will have the capacity to accept crude oil streams processed at Kinder Morgan’s Edmonton Terminal for loading and delivery by rail to refineries at any location in North America. The Alberta Crude Terminal will be built next to Keyeras Alberta Diluent Terminal on land recently bought by a Keyera subsidiary. The Terminal will be operated by Keyera, and will have 20 loading spots capable of loading around 40,000 barrels per day of crude oil into tank cars, and will be served by both Canadian National Railway and Canadian Pacific Railway.

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KMP

BP (NYSE:BP): Closing price $41.74

Chief Executive Bob Dudley said on Tuesday that BP is battening down its hatches for an extended legal battle regarding the Gulf of Mexico oil spill, after compensation costs skyrocketed for a second consecutive quarter. BP has been disputing the size of the payouts, even though they were settled in 2012, and has been the center of attention as of late in a wider legal process that has sandbagged BP with a $42.4 billion clean-up, penalties, and a compensation burden, and could cost billions more as well. BP has called some of the claims being paid ”absurd” and “fictitious,” and said that the terms are being misinterpreted to permit businesses which had no spill-associated loss to obtain payment. However, thus far the company’s endeavors to block them have been to no avail.

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BP

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