China Petroleum & Chemical Corporation (NYSE:SNP) — or Sinopec, as it is more commonly known — is one of the nation’s largest state-owned energy companies, with a plethora of refining and petrochemical facilities across the country.
However, it is quickly becoming a large upstream firm and is now China’s second largest energy producer. Sinopec has already spent $34 billion on several contracts in the U.K., U.S., Canada, Brazil, Argentina and Australia during the past three years to gain access to crude oil reserves.
Its latest deal occurred back in February when Sinopec inked a $1.02 billion contract with Chesapeake Energy (NYSE:CHK) for a 50% share in 850,000 acres in the Mississippi Lime. That came on the heels of a $2.2 billion deal in 2011 for Canada’s Daylight Energy.
These deals have boosted the company’s proven reserves of crude oil and natural gas to 3.964 billion barrels of oil equivalent, and have grown production by 4.9% in 2012.
Sinopec, which yields a decent 2.5%, can currently be bought for just 10 times trailing earnings.