Petrobras is in an expansive phase. It should see peer-leading production gains, barring any execution mishaps. The company’s world-class portfolio of pre-salt projects has positioned it to outperform the industry on our return-based metrics. With Brazil attracting high levels of upstream investment, Petrobras’ heavy exposure to the country should act as tailwind. The NOC is positioned to capitalize on this momentum. Petrobras has made encouraging progress in strengthening its balance sheet. Its disposal campaign is moving ahead at full steam – over US$15 billion in deals this year alone. It also faces less political risk after President Bolsonaro’s election.