Everybody assumes that Warren Buffett’s newfound energy favorite Exxon (XOM) is the world’s biggest oil firm based on production. The truth is that China’s state-owned PetroChina (PTR) is beating the former Standard Oil piece by a pretty big margin on the production front. Overall, PTR saw a 4.3% rise in its oil and gas output during the first three quarters of the year to reach 1.04 billion barrels of oil equivalent.
However, PetroChina isn’t just resting on its laurels.
The integrated energy producer continues to make major moves to improve production. That includes adding Canadian shale assets and deepwater wells off the coast of Africa and in the Gulf of Mexico, as well as oil fields in the Middle East.
The latest blockbuster deal for PTR involves buying Brazilian oil giant Petrobras’ (PBR) Peruvian assets for $2.6 billion. That will add roughly 800,000 metric tons worth of oil production to PetroChina’s output once the deal closes. It also gives the Chinese firm access to a pre-operational natural gas and condensate field as well as plenty of unexplored acreage.
Despite PetroChina’s production potential, shares of the firm currently trade for peanuts, with a forward P/E of just 9.79.