CHICAGO, Sept. 27, 2011 /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: BP Plc (NYSE: BP), Transocean Ltd (NYSE: RIG), Chevron Corp. (NYSE: CVX), ExxonMobil Corporation (NYSE: XOM) and Royal Dutch Shell Plc (NYSE: RDS.A).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
BP Seeks to Re-enter Gulf of Mexico
BP Plc (NYSE: BP) has executed its first move to resume operation in the U.S. Gulf of Mexico (GoM) region following the catastrophic incident last year. The U.K. oil giant has filed an exploration plan with U.S. regulator, the Bureau of Ocean Energy Management, Regulation and Enforcement, to drill its first exploration well in the GoM with high hopes to enhance its operations in the region.
The filing calls for appraisal drilling at BP's Kaskida prospect in the Keathley Canyon area. The proposed drilling is part of BP's 2006 venture located about 290 miles southwest off the Macondo well site, about 800 feet deeper in 5,800 feet of water. In 2009, BP confirmed oil in the Lower Tertiary play of the region via an early appraisal well.
Looking back, on April 20, 2010, offshore driller Transocean Ltd's (NYSE: RIG) ultra-deepwater Horizon drilling platform, contracted to BP, sank following an explosion while operating in the U.S. GoM off the coast of Louisiana. The incident killed 11 workers and spewed more than 200 million gallons of crude in what is touted as the country's worst oil spill ever. Subsequently, a moratorium was imposed on offshore drilling at water depths of more than 500 feet in the region, which was lifted on October 12, 2010.
The moratorium cost BP $41 billion and it awaits approval to drill new wells in the region. Although, other oil giants such as Chevron Corp. (NYSE: CVX), ExxonMobil Corporation (NYSE: XOM) and Royal Dutch Shell Plc (NYSE: RDS.A) have boosted their Gulf operations of late, BP was debarred. Even, the company experienced significant standby costs, which it expects to hurt its third quarter, for five rigs as it faces problems in acquiring permits.
The company remains optimistic on the latest proposal and expects to commence its drilling operations through 2013 for four wells on November 1, following the approval of the application. We believe exploration success will be the key for BP to deliver strong future growth as well as re-establish its position following the oil spill tragedy.
However, its inability to secure the Rosneft deal marks a huge blow for BP and has held back the stock. The contract was supposed to grant BP access to the Kara Sea, which has become a key focus for international oil majors.
As of now, we don't see any obvious catalyst in its business that would significantly push the stock price higher. BP shares currently retain a Zacks #3 Rank, which translates into a short-term Hold rating. Longer-term, we maintain our Neutral recommendation.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article