Our Outperform recommendation for CNOOC ADRs (CEO) reflect the company’s solid balance sheet, premium assets portfolio, excellent execution strategy, unique position as a pure oil player and potential transactions in the merger and acquisition space.
While China is desperately searching for energy worldwide, CNOOC’s recent acquisition of Eagle Ford Shale acreages is appreciable. Though we believe that value for the transaction will not be reflected in the near term, long-term benefit is probable as the Eagle Ford region is liquid-rich and has potential exploration upside.
CNOOC has been active in balancing reserve and production growth. In addition, its strong cost-control measures will assist in maximizing shareholder value.
CNOOC LTD ADR (CEO): Free Stock Analysis Report
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