Some Energy Company Specific News - Petrobras (PBR), Hess (HES), and Tesla Motors

I've mentioned quite a few times in the past [May 13: Petrobras (PBR) Business as Usual] that in due time I believe this company will be the largest, by market capitalization, in the world. Bloomberg shows us that PBR just passed Microsoft (MSFT) as #6.

• Petroleo Brasileiro SA, owner of the Western Hemisphere's largest oil discovery in three decades, passed Microsoft Corp. and Industrial & Commercial Bank of China Ltd. to become the world's sixth-largest company by market value.
• Petrobras surged with other oil and metals companies as growth in developing countries such as China and India increased demand for raw materials. Six of the top 10 companies by market value are energy or mining companies, while three are from China.
• Petrobras, which has seen its market value quadruple since 2004, is worth 41 percent less than Exxon Mobil Corp., the world's largest company at $498.6 billion. By overtaking Microsoft, Petrobras also becomes the third-largest company in the hemisphere after Exxon and General Electric Co., according to Bloomberg data.

Or as an interesting play on Brazil oil, through the backdoor by an American oil giant, what about Hess (HES)? Talk about a great investment they made 7 years ago. I've followed this name only with 1 eye, but it is up 30% year to date.

• Hess Corp., the fifth-largest U.S. oil company, may double its reserves on a $36 million investment made seven years ago.
• That's when Hess, the oil producer founded by the late Leon Hess, former owner of the New York Jets football team, bought its stake in an offshore Brazil exploration block. The company's market value has jumped 76 percent to $41.3 billion since the Western Hemisphere's largest oil find in three decades was made about 85 kilometers (53 miles) away, raising speculation Hess may also have a gusher.
• ``Hess is the U.S. company most leveraged to success down there,'' said Robert Goodof, who helps oversee $22 billion in assets at Loomis Sayles & Co. in Boston.
• Hess and Irving, Texas-based Exxon Mobil Corp., the world's largest oil company, each have 40 percent interests in the prospect.
  
• At current prices for U.S. oil futures, 2 billion barrels would be worth more than $250 billion.

So while most large cap mutual funds will focus on Exxon Mobil (XOM) - of which this find would definitely be a benefit, it would be a far greater impact on Hess. One to keep an eye on in the horde of exploration and production companies.

Last in the world of electric cars - which we are seeing entrants from Nissan & GM by 2010, we have the potential for an IPO coming from Tesla Motors. While this is a more specialized higher end company - this will be an interesting listing, especially if commodities continue (or even hold) their staggering gains.

• Most people probably won’t be able to afford one of the sexy electric sports cars from Tesla Motors. The Roadster sells for about $100,000 and only recently began shipping in limited quantities. But fans of Tesla may be able to buy something else later this year: Shares of Tesla’s stock.
• Elon Musk, Tesla’s chairman and a major investor, told attendees of the TieCon conference this weekend that he plans to take his electric-car company public by the end of 2008.
• Tesla ...has generated a huge amount of buzz in Silicon Valley circles. Sergey Brin and Larry Page, the founders of Google, were among its early investors. Mr. Page says he has already ordered one of Tesla’s $100,000 cars for himself.
• Tesla’s road has hardly been smooth, however. The company has hit some production delays, in part because of design changes, and it sued a competing company last month, alleging it stole Tesla’s trade secrets.
• Before going public, Mr. Musk said Tesla plans to raise another round of financing, which would help it begin production on Tesla’s luxury electric sedan by 2010

Here is a link to the car website for you top 1-2%'rs in the audience ;)