The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0722 GMT - BP stock could become 30% more valuable relative to its performance if its current oil and gas exploration efforts are successful, Citi analysts write. The giant Brazilian offshore discovery Bumerangue is its hottest prospect, and combined with efforts in the U.S., Venezuela and Iraq, the British energy company's oil supply lifespan could grow to 14 years from the seven years reported at the end of 2025, they write. BP's reserve life outside its U.S. BPX business has fallen behind peers after it invested heavily in a pivot toward renewable forms of energy that dented its valuation, they say. BP's shares rise 0.8% to 550 pence. (adam.whittaker@wsj.com)

0126 GMT - Malaysia oil and gas sector is trading below their historical valuation levels, at 10X forward price-to-earnings, Affin Hwang IB analyst Ong Tze Hern says in a note. However, scope for a broad-based re-rating could remain limited until domestic job flows improve, he says. Near-term oil prices should stay supported by prolonged Middle East disruptions, prompting him to raise 2026 Brent forecast to $85/bbl from $81/bbl. But current oil price strength is unlikely to mark a structural upcycle, with Brent expected at $70/bbl in 2027 as Middle East supply normalizes. Resolving the Petronas-Petros issue and recovering Petronas capital expenditure could be more meaningful catalysts for domestic oil and gas services. Affin Hwang maintains a neutral sector's rating, pegging Dialog and Bumi Armada as top picks. (yingxian.wong@wsj.com)

2227 GMT - Santos's purchase of an additional 3.3% stake in Papua LNG from TotalEnergies looks attractive to its bull at Citi. This interest comes at a 50% discount to the bank's valuation. Santos will have a 21% stake in Papua LNG once Papua New Guinea buys into the project. Analyst Tom Wallington notes the transaction hinges on regulatory approvals and a final investment decision. Citi expects FID to happen later this year. "While the increased share increases Santos's Papua equity contribution by US$300 million, we view this favorably," Citi says. That reflects the project's strong internal rate of return of 15%, assuming oil prices average $65 over the long term. Papua LNG is also a good strategic fit and there's potential to make further operating savings under a simplified ownership and operatorship structure, Citi says. (david.winning@wsj.com; @dwinningWSJ)

0834 GMT - China's artificial-intelligence strategy is accelerating investment in infrastructure and broadening AI adoption across related sectors, according to Moody's Ratings in a research note. Infrastructure companies are increasingly participating in China's AI ecosystem as investors, developers and users of AI technologies, it points out. "Applications in power grids, power generation, ports, airports and toll roads are already improving forecasting, dispatch, maintenance and asset utilization, generating measurable operational benefits," it says.