A Laggard in Brazil Oil Frenzy Is Now a Favorite in the Bust

In the saga of Brazil’s oil industry, QGEP Participacoes SA has always flown mostly under investors’ radar. It’s no heavyweight like state-run Petrobras, nor has it ever been as flashy as OGX, ex-billionaire Eike Batista’s startup.

But among producers that sold more than $77 billion in stock after Brazil discovered massive offshore crude deposits in 2007, QGEP now stands out: It has the best track record of meeting its output targets almost a decade later.

That hasn’t stopped investors from dumping the stock along with its peers. QGEP is down more than 80 percent since its 2011 peak as oil prices collapsed, OGX filed for bankruptcy protection and Petrobras was ensnared in a crushing corruption probe. QGEP Chief Executive Officer Lincoln Guardado says it’s time for investors to take a second look. And analysts agree.

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