Bp Share Discussion Threads

[waldron] 09/10/2018 17:00

Total
54.83 +1.44%

Engie
12.62 -0.28%

Orange
13.595 -0.07%

FTSE 100
7,237.59 +0.06%
Dow Jones
26,471.91 -0.06%
CAC 40
5,318.55 +0.35%

Brent Crude Oil NYMEX 84.84 +1.22%
Gasoline NYMEX 2.08 +0.09%
Natural Gas NYMEX 3.26 -0.79%


BP
579 +0.42%


Shell A
2,594.5 +0.91%


Shell B
2,638 +1.01%

[optomistic] 09/10/2018 15:57

Interesting article

[sarkasm] 09/10/2018 09:05

Shares in Serica Energy PLC (SQZ.LN) soared Tuesday after it said that it and BP PLC (BP.LN) have received a conditional license and assurance from the U.S. Office of Foreign Assets Control relating to the Rhum field in the North Sea.

The oil-and-gas company bought assets from BP, including a 50% stake in the Rhum field, last November for up to 52 million pounds ($68 million) as part of a reverse takeover. However, the co-owner of the Rhum field is Iranian Oil Company (U.K.) Ltd, a subsidiary of the Iranian state oil company, which could have opened up the possibility of companies working on the field being hit by U.S. sanctions.

With the conditional license and assurance from OFAC--the body that controls sanctions--the company's wholly owned subsidiary, Serica Energy (UK) Ltd., and BP will be allowed to receive goods, services and support from certain U.S. and U.S.-owned entities.

OFAC has also provided an assurance that non-U.S. entities providing goods, services and support involving the Rhum field won't be hit by secondary sanctions, Serica Energy said.

Serica Energy said the agreement with OFAC is conditional on arrangements being put in place by Nov. 4 so that all of the benefits from Iranian Oil Company's interest in the Rhum field will be held in escrow while U.S. sanctions apply.

The arrangements, which are at an advanced stage, ensure that neither the Iranian-owned company nor any of its direct or indirect parent companies will derive economic benefit from the Rhum field during that period, Serica Energy said.

Serica Energy shares at 0723 GMT were up 30% at 100 pence.



Write to Oliver Griffin at [e-mail]; @OliGGriffin



(END) Dow Jones Newswires

October 09, 2018 03:41 ET (07:41 GMT)

[waldron] 08/10/2018 17:16

Total
54.05 -1.96%

Engie
12.655 -0.16%

Orange
13.605 -0.37%

FTSE 100
7,233.33 -1.16%
Dow Jones
26,250.9 -0.74%
CAC 40
5,300.25 -1.10%



Brent Crude Oil NYMEX 83.49 -0.57%
Gasoline NYMEX 2.07 -0.45%
Natural Gas NYMEX 3.28 +3.80%




BP
576.6 -2.02%


Shell A
2,571 -1.04%


Shell B
2,611.5 -0.89%

[hellscream] 08/10/2018 16:15

US majors in the green :) didnt know bp was a bank.

[hellscream] 08/10/2018 16:09

just day traders making a living

[optomistic] 08/10/2018 09:09

It looks like she has changed her mind about 600 for now!

[ariane] 07/10/2018 17:36

Energy industry
'Fog of Brexit has had massive bearing on energy bills' – supplier

Consumers face further price increases if the pound falls further, says Pure Planet

Adam Vaughan
@adamvaughan_uk

Sun 7 Oct 2018 16.46 BST
Last modified on Sun 7 Oct 2018 16.48 BST

Shares
7
Setting the central heating level in gas furnace panel
The UK only imports a small amount of electricity, around 6% of supplies, but imports more than half its gas, meaning the country pays more for the fuel when sterling weakens. Photograph: Alamy Stock Photo

Brexit has had a “massive bearing” on UK energy bills and consumers face further price rises if the pound falls further, according to a BP-backed energy startup.

Steven Day, a co-founder of Pure Planet, an app-based renewable energy supplier, warned that the UK’s departure from the EU was the biggest political issue facing the energy sector at the moment.

“The very short-term stuff is the fog of Brexit. That is causing a major problem in terms of what costs consumers will face in 2019. If the pound gets devalued further, energy prices will go up again. That is unequivocal,” he said.

The UK only imports a small amount of electricity, around 6% of supplies, but imports more than half its gas, meaning the country pays more for the fuel when sterling weakens. The pound has repeatedly fallen at signs that a no-deal Brexit is more likely.

Day, a former telecoms executive, said there was “no doubt” the pound’s devaluation was a key factor behind a series of price increases that have hit millions of households this year, as suppliers blamed rising wholesale prices.

Further increases in wholesale costs were likely, he said, which would prove a challenge for the government’s price cap that takes effect at the end of the year.

The co-founder said the market was very different from when he launched his green energy supplier a year ago because the cost of energy was now a “big barrier” for anyone considering joining the market’s 60-plus suppliers.

“The days of the independent sector expanding are over, at least temporarily, while the market consolidates a little bit,” he said.
Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

Day said he was concerned that an exemption in the price cap, which allows green tariffs to breach the limit, could hold back the UK’s switch to renewables.

It is not yet clear if any firms will apply for the exemption but if they did it could affect the perception of green energy, he suggested. “It reinforces the idea that green has to be more expensive … and that will slow down the shift to green energy.”

BP holds a 24% stake in Pure Planet, which is on track to hit more than 75,000 customers by the end of the year.

[sarkasm] 06/10/2018 06:58

Why It's Worth Adding BP Stock to Your Portfolio Right Away
October 05, 2018, 05:30:00 PM EDT By Zacks Equity Research, Zacks.com

Shutterstock photo

BP plc 's BP upbeat prospects make it a promising pick.

The company currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities for investors.

Let's delve deeper to analyze the factors that make this British integrated energy player an attractive investment option.

The company has been gaining on a strong portfolio of upstream projects. Since 2016, BP has brought 15 key upstream developments online, including Atoll Phase 1, Shah Deniz 2 and Taas-Yuryakh oil expansion in Russia.

Apart from starting three more projects in 2018, BP is planning to bring online 10 more key upstream developments beyond 2018. All these developments are helping the British energy giant to boost production by 900 thousand barrel of oil equivalent per day (MBOE/D) by 2021.

Being a leading producer of oil and natural gas, BP is well placed to capitalize on strengthening oil prices and rising natural gas demand for clean energy needs. It is to be noted that through first-half 2018, BP's worldwide production comprised 1,267 thousand barrels per day (MB/D) of liquids and 7,352 million cubic feet per day (MMCF/D) of natural gas.

Importantly, owing to an integrated business model, the company has been steadily rewarding investors with handsome dividend yield. BP's current dividend yield of 5.2% is higher than 4.2% of the stocks belonging to the industry . Notably, over the past 10 years, the company has been consistently paying higher dividends than the broader industry.

BP's pricing chart is impressive as the stock has rallied 22.2% over the past year, outperforming the 14.1% collective gain of the stocks belonging to the industry.

Other Stocks to Consider

Other prospective players in the energy space are Shell Midstream Partners LP SHLX , Oasis Midstream Partners LP OMP and Petroleo Brasileiro S.A. or Petrobras PBR . All the stocks sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Shell Midstream Partners has an average positive earnings surprise of 7.9% for the last four quarters.

Oasis Midstream will likely see earnings growth of 323.3% and 60.1% in 2018 and 2019, respectively.

Petrobras' bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.

[sarkasm] 06/10/2018 06:55

BP: Winning Rights To Pau Brasil Field Solid Development
Oct. 5, 2018 3:41 PM ET|
5 comments
|
About: BP p.l.c. (BP)
Power Hedge
Power Hedge
Macro, energy, alternative energy, contrarian
Marketplace
Energy Profits in Dividends
(4,183 followers)
Summary

A BP-led consortium just won the development rights to the massive Pau Brasil field in Brazil's offshore Santos Basin.

This field is estimated to contain up to 2.5 billion barrels of recoverable oil, making it one of the largest fields around.

While the price is a little steep, this should still be good for BP's profits going forward.

It should also help to offset declines in some of BP's more mature fields elsewhere.

Analysts think that the stock is overpriced at today's levels relative to its forward growth potential.

Looking for more? I update all of my investing ideas and strategies to members of Energy Profits in Dividends. Start your free trial today »

We have seen several major oil companies begin either moving into or expanding their operations in the Brazilian pre-salt over the past few months. On Friday, September 28, 2018, British supermajor BP (BP) joined the crowd when its consortium won the rights to develop the Pau Brasil field in the most recent government auction. This development certainly has the potential to be quite beneficial for BP, although the cost may seem somewhat steep.
Why Brazil?

The primary appeal of Brazil to oil companies lies in the massive resources found in the pre-salt region located off of the country's coast. As I have explained in several previous articles (such as this one), the pre-salt region is a diachronous series of geological formations found on the continental shelves of extensional basins characterized by the deposition of thick layers of evaporites, mostly salt. As these formations were created by the break-up of the prehistoric supercontinent Gondwana, they are most common in the South Atlantic, most notably off of the coasts of Brazil and Africa.

The reason why this region is so appealing to oil and gas companies is the enormous quantity of resources located below the layer of salt. According to many estimates, the region contains between 50 and 100 billion barrels of oil, which would represent a substantial portion of the total reserves estimated to exist in the world. Obviously, the potential to gain access to these reserves is very appealing to any company involved in the energy industry. This is, therefore, why companies like BP are moving into the country despite the Brazilian government not always being pleasant to deal with.
BP And The Pau Brasil Field

Last week, the Brazilian government of Michel Temer auctioned off four pre-salt blocks, raising a total of 6.8 billion reals ($1.7 billion) in upfront payments for the government. As is the usual auction process in Brazil, the companies are required to bid by pledging a percentage of the block's production to the government.

One of the blocks, the Pau Brasil field, was won by a consortium of BP, Ecopetrol (EC), and CNOOC (CEO). BP owns the lion's share of the consortium with a 50% stake, while CNOOC has 30%, and Ecopetrol has 20%. The consortium ended up paying 500 million Brazilian reals up front and 63.79% profit oil for the block. At first glance, this price seems very steep as the consortium will essentially be giving up all of the profit that it would otherwise be getting from the field. In actuality though, it is not as steep as it seems. This is because the consortium is only surrendering 63.74% of its profit oil, which is the oil that is left over after it pays all of its costs. Thus, the consortium will only be making 36.21% of what it otherwise would. While this still seems like a steep price to pay, the field will ultimately prove profitable for BP and the other companies involved in the consortium.

The 135 sq. km Pau Brasil field was generally considered to be the most attractive asset in the current auction round. This is mostly due to its size as it has been estimated to contain up to 2.5 billion barrels of recoverable oil. This size means that the field should prove to be a very long-lasting asset for the consortium, one that should pay for its development costs several times over, even when considering that the Brazilian government will take a high percentage of the profits. Thus, BP's shareholders should overall be pleased that their company will be operating this giant field.

Unfortunately, BP has not publicly released a development timeline for this field yet, so we are not exactly sure how long it will take the company to derive profits from the field. We can, however, assume that it will take a few years to bring the field to a production state. This is fairly typical for oil development projects and it will thus help to offset the natural production declines that BP's current fields will incur going forward.
BP in Brazil

For its part, the Pau Brasil field is not BP's only presence in Brazil. In fact, the company has had a presence in the country since 1957 and employs 7,000 people there. The company was, however, slower at taking advantage of the country opening up its offshore markets to foreign companies than Royal Dutch Shell (RDS.A) or Total (TOT). The company does have stakes in twenty blocks throughout Brazil though and these blocks should prove to be positive for BP's long-term growth, even if it is not the operator of all of them. It is certainly possible that we will see the company continue to expand its presence in the resource-rich nation as the government continues to open up its waters to foreign investment. This would be good for BP's long-term growth prospects.
Valuation

Despite the fact that the company winning the rights to the Pau Brasil field is a net positive for BP, it is important to ensure that we do not overpay for the stock. This is because overpaying for any asset is a surefire way to generate sub-optimal returns. One metric that we can use to determine if a stock is overvalued is the price-to-earnings growth ratio. This ratio is a way of adjusting the more familiar price-to-earnings ratio to account for a company's forward earnings growth. As a general rule, a price-to-earnings ratio greater than 1.0 is an indication that a stock may be overvalued relative to its forward earnings growth and vice versa. According to Zacks Investment Research, BP is expected to grow its earnings at a 4.00% annual rate going forward, which would give the company a PEG ratio of 3.45 at the current stock price. This is dramatically higher than many of the other big oil names and could be a clear sign that the stock is overvalued at today's levels.
Conclusion

In conclusion, the Brazilian nation is becoming somewhat more open to foreign energy investment lately and this, combined with higher oil prices, has attracted numerous big oil names to the region. BP recently joined several of its peers in the Santos Basin by winning the rights to develop the Pau Brasil field. Ultimately, this should prove to be a long-time good for the company as it gives it an enormous new field from which it can offset declines in production elsewhere and maybe even grow its production. Unfortunately, analysts seem to think that the stock has gotten ahead of itself at its current levels and is overpriced.

At Energy Profits in Dividends, we seek to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing our risk of principal loss. By subscribing, you will get access to our best ideas earlier than they are released to the general public (and many of them are not released at all) as well as far more in-depth research than we make available to everybody. We are currently offering a two-week free trial for the service, so check us out!

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[waldron] 05/10/2018 17:26

Total
56.04 -0.05%


Engie
12.645 -0.47%

Orange
13.655 -0.55%

FTSE 100
7,318.54 -1.35%
Dow Jones
26,374.77 -0.95%
CAC 40
5,359.36 -0.95%


Brent Crude Oil NYMEX 84.45 -0.48%
Gasoline NYMEX 2.09 -0.93%
Natural Gas NYMEX 3.14 -1.57%



BP
588.5 -1.64%


Shell A
2,598 -2.22%



Shell B
2,635 -2.19%

[waldron] 04/10/2018 17:24

Total
56.07 -0.41%


Engie
12.705 -0.70%

Orange
13.73 -0.15%


FTSE 100
7,418.34 -1.22%
Dow Jones
26,605.05 -0.83%
CAC 40
5,410.85 -1.47%



Brent Crude Oil NYMEX 85.06 -1.07%
Gasoline NYMEX 2.10 -1.28%
Natural Gas NYMEX 3.19 -1.48%



BP
598.3 +0.07%


Shell A
2,657 -0.34%



Shell B
2,694 -0.43%

[stemis] 04/10/2018 08:35

Through 600p but can it hang on to it...

[waldron] 03/10/2018 18:04

Total
56.3 +0.18%


Engie
12.795 +0.20%

Orange
13.75 +1.03%


FTSE 100
7,510.28 +0.48%
Dow Jones
26,936.79 +0.61%
CAC 40
5,491.4 +0.43%


Brent Crude Oil NYMEX 85.29 +0.70%
Gasoline NYMEX 2.12 -0.32%
Natural Gas NYMEX 3.24 +2.37%



BP
597.9 +0.15%


Shell A
2,666 +0.40%


Shell B
2,705.5 +0.52%

[sarkasm] 03/10/2018 15:49

This High-Yield Stock Just Locked In High-Octane Growth for 2019
A needle-moving acquisition sets up this 5.6% yielder to grow its payout at a mid-teens rate next year.
Matthew DiLallo
Matthew DiLallo
(TMFmd19)
Oct 3, 2018 at 9:21AM

Oil giant BP (NYSE:BP) quietly formed a master limited partnership (MLP) toward the end of last year to begin cashing in on the value of its midstream assets. In the process, it provided income-seeking investors with a new high-yielding option to consider. It did so by seeding BP Midstream (NYSE:BPMP) with a solid portfolio of cash flowing pipelines that would not only support a lucrative distribution to investors but had enough embedded organic growth so that the MLP could increase that payout at a 5% to 6% annual rate through 2020.

BP, however, thinks that it could grow the payout of its MLP at an even faster pace by dropping down additional midstream assets to the company in the coming years. The two companies recently completed the first such dropdown deal, which positions BP Midstream to increase its 5.6%-yielding distribution by a mid-teens rate next year. Meanwhile, with a large supply of acquisition opportunities in the pipeline and other expansion possibilities it could pursue, BP Midstream could continue increasing its payout at a high rate in the coming years, making it a potential gold mine for income seekers.
A speedometer accelerating.

Image source: Getty Images.
Details on the deal

BP Midstream Partners has agreed to acquire interests in three assets from BP in a transaction valued at $468 million. The first asset is Mardi Gras, a joint venture (JV) with Royal Dutch Shell (NYSE:RDS-A)(NYSE:RDS-B) and its MLP, Shell Midstream Partners (NYSE:SHLX), which operates four offshore pipelines. BP Midstream already owned 20% of BP's interest in the JV but will now hold 65% of that stake. It's an important system that the partners have recently expanded so that it can support their new projects in the Gulf. They include Shell's Appomattox platform, which should start up next year, and BP's Thunder Horse North West Expansion, Atlantis Phase three, and Mad Dog 2, which will begin in 2019, 2020, and 2021, respectively.

BP Midstream will acquire BP's roughly 22.7% interest in Ursa, another offshore pipeline, as well. Shell also operates this pipeline, which will support the company's Kaikias development that started up earlier this year.

The final asset acquired is a 25% stake in KM-Phoenix, which is a JV with pipeline giant Kinder Morgan (NYSE:KMI). BP initially sold a 75% stake in the JV that held 14 terminals -- as well as selling one outright -- to Kinder Morgan for $350 million in 2015. However, KM-Phoenix currently operates 13 refined product terminals, with most supplied under long-term contracts by refineries operated by BP.

These new additions do two things for BP Midstream. First, it provides the company with need-moving growth since the cash flow from these assets should give it the fuel to increase its distribution at a mid-teens rate next year while supplying it with additional organic growth in the future as those offshore projects come on line. It further diversifies the company's revenue stream by adding onshore terminals to its portfolio of pipelines.
Closeup of a man showing a thumb up gesture, pumping gasoline in a car at a gas station.

Image source: Getty Images.
Plenty of fuel in the tank

This transaction represents just a fraction of BP's U.S. midstream assets, leaving it with a vast pool of future drop-down candidates. For example, the company holds the right of first offer to acquire a long list of pipelines as well as stakes in pipeline joint ventures currently owned by BP, including the remaining interest in Mardi Gras. In addition, BP owns logistics assets such as loading and unloading docks and storage at its refineries, other infrastructure to support production, as well as a significant business to business fuels distribution service.

On top of the opportunities already embedded within BP that BP Midstream could acquire, there's also the potential for it to build or buy other assets to support BP's growth in the states. That's what Shell Midstream did last year when it acquired a stake in the Nautilus gas gathering system developed by Crestwood Equity Partners (NYSE:CEQP), which it started building to support Shell's fast-growing production from the Permian Basin. Crestwood and Shell Midstream will now work together to expand that footprint to meet Shell's needs in the future. BP could potentially seek out similar arrangements with midstream companies to support its growth after agreeing to spend $10.5 billion to bulk up its shale business earlier this year. BP Midstream could also participate in the development of long-haul pipelines to move production out of those regions, leaving it with no shortage of opportunities to expand.
The first of many

BP Midstream's deal with BP will provide it with enough fuel to grow its lucrative payout at a double-digit rate next year. It's the start of what will likely be a steady string of transactions between the two companies, which could give BP Midstream the fuel to grow its distribution at a fast pace for the next several years. That growing income stream makes the MLP an intriguing option for income-seeking investors to consider.

[scoobydoo99] 03/10/2018 13:40

Probably so many sell orders set at £6.00 it'll take a few pushes to clear the £6.00 barrier, then upwards and onwards :)

[optomistic] 03/10/2018 12:21

600....will it hold...

[adrian j boris] 03/10/2018 09:19

BP PLC (BP.LN) said on Wednesday that it has agreed to explore possible areas of cooperation in the development and deployment of advanced technologies with Norway's Aker BP ASA (AKERBP.OS), in which it already owns a 30% stake.

The oil-and-gas major said that in their planned strategic alliance, BP and Aker BP will explore potential venture-capital investments targeting technology and innovation improvements.

Areas for potential investment include digital twins for physical machinery, advanced seismic techniques and processing, and sub-sea and robot technology, BP said.

BP Technology's chief commercial officer Steve Cook said: "Our alliance will help both companies identify and invest in innovation that will help secure and advance our industry's future."



Write to Oliver Griffin at [e-mail]; @OliGGriffin



(END) Dow Jones Newswires

October 03, 2018 03:16 ET (07:16 GMT)

[waldron] 02/10/2018 17:39

Total
56.2 -0.30%


Engie
12.77 +1.07%

Orange
13.61 -0.07%


FTSE 100
7,474.55 -0.47%
Dow Jones
26,786.6 +0.51%
CAC 40
5,467.89 -0.71%


Brent Crude Oil NYMEX 84.93 -0.02%
Gasoline NYMEX 2.12 -0.36%
Natural Gas NYMEX 3.17 +1.80%



BP
597 +0.29%


Shell A
2,655.5 +0.26%



Shell B
2,691.5 -0.19%

[veryniceperson] 02/10/2018 10:33

So close yet so far away. Should reach 600 by the end of month.