PetroKazakhstan Share Price Boosted by China's Offer

Strategic Insights -

PetroKazakhstan, a Calgary-based energy company, saw its share price surge by almost 6% last week following an offer from China National Petroleum Corp. (CNPC) worth $4.2 billion. Contrary to PetroKazakhstan's fortunes, PetroChina, CNPC's subsidiary, experienced a decline in its share value by over 11% during the same period. The two companies took contrasting positions on John S. Herold's weekly list of leading energy sector gainers and decliners.

Key Takeaways:

  • PetroKazakhstan's share price increased by 5.9% following CNPC's $4.2 billion offer, while PetroChina's share value fell by 11.4%.
  • CNPC is offering approximately $7.10 per barrel for PetroKazakhstan's oil reserves, which produce around 150,000 barrels per day.
  • Analysts consider the price tag to be high, but China's state oil companies have a reputation for making expensive bids for overseas assets.
  • Other energy companies, such as Sibneft, Gulfport Energy, and Isramco, saw significant gains in their share values, with Sibneft rising almost 19% and Gulfport Energy and Isramco gaining 9.9% and 9.7%, respectively.
  • ONGC's share value rose 5.3% last week, according to John S. Herold's weekly list.
  • US Goodrich Petroleum's share value fell 10.6% after several significant land purchases in Texas.
  • Northern Petroleum, Royale Energy, and NGAS Resources experienced significant losses, with Northern Petroleum falling 18.2%, Royale Energy losing 16.4%, and NGAS Resources losing 13.7%.

Statistics:

  • PetroKazakhstan's share price increase: 5.9%
  • PetroChina's share value decline: 11.4%
  • CNPC's offer price per barrel: $7.10
  • PetroKazakhstan's daily oil production: 150,000 barrels
  • Sibneft's share price gain: 19%
  • Gulfport Energy's and Isramco's share price gains: 9.9% and 9.7%, respectively
  • ONGC's share value increase: 5.3%
  • US Goodrich Petroleum's share value decline: 10.6%
  • Northern Petroleum's share price decline: 18.2%
  • Royale Energy's share price decline: 16.4%
  • NGAS Resources' share price decline: 13.7%

Sources:

  • China National Petroleum Corp. (CNPC) official announcement of the $4.2 billion offer for PetroKazakhstan
  • John S. Herold's weekly list of leading share gainers and decliners in the energy sector
  • Analyst comments on CNPC's offer price being high but consistent with China's reputation for making expensive bids for overseas assets
  • CNOOC Ltd.'s recent outbid for US independent producer Unocal
  • Chevron's offer for Unocal
  • Washington news (OD Aug.11, p1) on CNOOC's bid for Unocal
  • New York crude futures sharp drop last week
  • Northern Petroleum's share price decline
  • Royale Energy's share price decline
  • NGAS Resources' share price decline
  • US Goodrich Petroleum's share value decline
  • Standard & Poor's credit rating increase for Sibneft to B-