Rubiales Gains as Citigroup Predicts Output Jump: Bogota Mover
Pacific Rubiales Energy Corp. (PREC), the operator of Colombia’s largest oil field, rose for a fifth day as Citigroup Inc. (C) forecast the company would report “strong” first-quarter production gains.
The shares rallied 7.3 percent to 37,560 pesos this week in Bogota, the second-best performance on Colombia’s benchmark Colcap index, which rose 0.2 percent. Pacific Rubiales gained 1.5 percent at 12:40 p.m today.
First quarter results “should highlight strong production growth,” Citigroup analysts Pedro Medeiros and Fernando Valle wrote in a report today. This could help “enhance investors’ confidence.” Pacific Rubiales is scheduled to report first- quarter profit on May 8.
Production will average 126,000 barrels of oil equivalent a day in the first quarter, according to Citigroup. For the fourth quarter, net output averaged 108,149 barrels a day, according to the company.
The current share price leaves “considerable upside from exploration and development of its probable reserves,” the Citigroup analysts wrote.
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