Petrobras (PETR4) Status Update summary

Strategic Vision and Purpose

• Aims to be a leading diversified and integrated energy company, focusing on value generation, sustainability, and a just energy transition.

• Maintains a core focus on oil and gas, while expanding into low-carbon businesses, including bioproducts, renewables, and petrochemicals.

• Commits to operational net zero emissions and leadership in the energy transition.

• Prioritizes care for people, integrity, innovation, and commitment to Brazil.

Strategic Priorities, Production, and Growth Outlook

• Forecasts oil production to reach 2.7 million barrels per day by 2028, maintaining high levels through 2034, with a milestone of 3.4 million barrels of oil equivalent per day in 2028.

• Oil production forecast for 2025 is around 2.4 million bpd, with a 12% increase in three years.

• Production growth is supported by accelerated project execution, platform upgrades, and supplemental development projects, extending peak output by 2-3 years.

• Gas supply to grow with new projects and higher availability in the Santos Basin.

• Maintains industry-leading low lifting costs and strong reserves replacement.

Financial Discipline and Capital Allocation

• Over $109 billion in investments planned for 2026-2030, with more than 70% allocated to E&P projects, aiming for value creation and cash flow growth.

• Portfolio of investment opportunities totals $109 billion, with $91 billion under implementation, mostly in exploration and production.

• Maintains capital discipline with a break-even Brent price target of $59 per barrel in 2026, down from $82 in 2025, ensuring resilience to lower oil prices.

• CapEx for 2026 and 2027 set at $19.4 billion and $21 billion, respectively, with flexibility to adjust investments based on financial capacity and market conditions.

• Dividend policy remains unchanged, with no intention to reduce payouts or retain excess cash.