In a world where investors are increasingly focused on the production growth prospects of major integrated energy companies and their leverage to oil, Petrobras (NYSE:PBR) ought to be a popular name. Few companies of comparable size have added more to reserves over the past decade and most sell-side production forecasts for Petrobras are nearly double that of other multinationals like ExxonMobil (NYSE:XOM), BP (NYSE:BP), or Chevron (NYSE:CVX).
Unfortunately, there are a lot of challenges offsetting Petrobras's leverage to huge oil-heavy reserves. The company has established a record of missing production guidance and production costs are increasing. Even more troubling is a systemically troubled refining operation and a government that is all too...
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