This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Petrobras Upgraded on Share-Swap Deal

Stocks in this article: PBR BLK ME BP APA

NEW YORK ( TheStreet) -- Petroleo Brasileiro (PBR - Get Report), also known as Petrobras, gained Thursday after U.S.-listed shares of the Brazilian oil and gas company were upgraded.

American depositary receipts of Petrobras rose 1.3% in early-afternoon trading on high volume.

Petrobras said it will pay Brazil $42.5 billion in new stock in exchange for being allowed to develop 5 billion barrels of oil in offshore fields below the Atlantic Ocean, off the coast of Rio de Janeiro.

S&P Equity Research upgraded the firm's U.S.-listed shares to buy from hold. It said even though Petrobras' stock-for-oil deal came in at the high end of expectations and is likely to add near-term pressure to its stock, the deal is still viewed in a positive light because of its strong long-term growth potential.

Petrobras' offering is one of the largest stock offerings this year, and is part of its overall plan to invest $224 billion by 2014. The deal is expected to close Sept. 30.

Petrobras investors such as billionaire George Soros, BlackRock (BLK - Get Report) and Banco BTG Pactual have been part of a recent sell off in Petrobras shares, Bloomberg News reported.

Elsewhere in the energy sector, shares of Mariner Energy were among the most widely-traded shares on Thursday after a fire broke out on an offshore platform it owns in the Gulf of Mexico, a region still reeling from the aftereffects of the catastrophic BP (BP - Get Report) oil spill.

Early reports of the explosion seemed to be either mistaken or exaggerated. Workers were sandblasting the platform when the fire occurred, and production had been halted.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs