AWE Ltd. investors who drove the shares down more than 40 percent this year in Sydney trading have overreacted to the oil and gas explorer’s disappointing drilling campaign off New Zealand, Citigroup Inc. said.
Santos Ltd. is expected to win Australian government approval for an A$18 billion ($17.6 billion) natural gas project in Queensland state with conditions that shouldn’t be “overly onerous,” Citigroup Inc. said.
Smithfield Foods Inc., owner of the world’s biggest hog slaughterhouse, is looking for deals in smoked ham, bacon and frozen meatballs. That may put Sara Lee Corp. and People’s Food Holdings Ltd. on its shopping list.
Korea Gas Corp. , the world’s biggest importer of liquefied natural gas, may need more Australian LNG after signing an initial accord to buy supplies from Chevron Corp.’s proposed Wheatstone project, Citigroup Inc. said.
U.S. hog producers are unlikely to increase the size of their herds because of the soaring cost of livestock feed, AgStar Financial Services Inc. said, signaling higher expenses for meat processors including Hormel Foods Corp. and pricier pork chops at the grocery store.
Santos Ltd. agreed to sell stakes in its Australian liquefied natural gas project to Total SA and Korea Gas Corp. for A$665 million ($660 million) to help fund a development estimated to cost $16 billion.
Woodside Petroleum Ltd. may delay the start of the A$13 billion ($12.7 billion) Pluto liquefied natural gas project in Western Australia until August 2011 and increase its cost estimate for the venture, Citigroup Inc. said.
Meat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds.