BP Share Price (BP.)

Share Name Share Symbol Market Type Share ISIN Share Description
British Petroleum LSE:BP. London Ordinary Share GB0007980591 $0.25
  Price Change % Change Share Price Shares Traded Last Trade
  -16.00p -2.77% 560.60p 12,483,195 14:46:40
Bid Price Offer Price High Price Low Price Open Price
560.50p 560.70p 572.60p 560.60p 572.00p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 181,084.00 5,315.94 12.73 43.2 111,884.6
Related Shares
Shell A (RDSA), Shell B (RDSB), Nighthawk Energy (HAWK), Magnolia Pet (MAGP)

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Date Time Source Headline
22/6/201817:54DJFRLes actions européennes rassérénées par les PMI, le pétrole et la Grèce
22/6/201807:00UKREGBP PLC 1Q2018 interim dividend allotments for scrip
21/6/201817:32UKREGBP PLC Transaction in Own Shares
21/6/201807:33DJFRBP renonce à acquérir les stations-service de l'australien Woolworths
21/6/201800:04DJNBP Cancels Woolworths Fuel Deal After Regulator Opposition
19/6/201817:51UKREGBP PLC Transaction in Own Shares
19/6/201813:36DJNTaking the Fracking Boom Global
18/6/201809:25DJFRLes valeurs pétrolières reculent en perspective de la réunion de l'Opep
14/6/201808:02DJNOil Companies Want City's Suit Dismissed -- WSJ
13/6/201822:48DJNOil Companies Seek to Dismiss New York City's Climate-Change Lawsuit
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Date Time Title Posts
25/6/201809:56BP. - Charts & News1,943
22/6/201817:13 BP89,906
06/5/201813:36Deutsche Bank AG Analysts Give BP plc (BP) a GBX 515 Price Target4
31/7/201722:59IF I WAS A BP SHAREHOLDER I'D WANT BP TO TAKEOVER UKOG FOR WEALD OIL5
22/6/201720:29BP : Investments in Azerbaijans oil & gas sector - over $75B-

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13:46:40560.6038213.03AT
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25/6/2018
09:20		BP Daily Update: British Petroleum is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker BP.. The last closing price for BP was 576.60p.
British Petroleum has a 4 week average price of 541.50p and a 12 week average price of 475.80p.
The 1 year high share price is 593.30p while the 1 year low share price is currently 436.95p.
There are currently 19,958,001,728 shares in issue and the average daily traded volume is 32,438,512 shares. The market capitalisation of British Petroleum is £112,064,179,702.72.
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25/5/2018
11:28		tewkesbury: Powerhouse Energy (PHE) possible 2000 bagger: englishlongbow 25 May '18 - 10:49 - 6554 of 6556 Keith Allaun says PHE could be a FTSE 100 company based on their UK rollout plans i.e. at least 300p share price; and they are expecting 2.5x more rollout in the EU, and roll out in other geographies like Australia, Far East, Midddle East, etc. So in terms of the share price: 300p for the UK + 750p for the EU + more elsewhere, gives an eventual share price well over 1000p (£10) making it a 2000+ bagger from here. £1000 investment now could be worth £2 million in future. That is a mind boggling return on investment.
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02/5/2018
08:36		waldron: BP's Grueling Recovery Gathers Momentum -- WSJ 02/05/2018 8:02am Dow Jones News BP (LSE:BP.) Intraday Stock Chart Today : Wednesday 2 May 2018 Click Here for more BP Charts. Oil company's output and share price are on the mend, as effect of 2010 disaster fades By Sarah Kent This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (May 2, 2018). LONDON -- BP PLC shares rose to levels not seen since shortly after the Deepwater Horizon disaster in 2010, as rebounding oil prices led to solid first-quarter results. Like other big oil firms that have reported recently, London-based BP benefited from recently lofty oil prices, but it also showed rising production. The outcome was its strongest quarterly earnings since mid-2014 -- which could go some way toward convincing investors that BP's ambitious plan to regain its position among the world's top energy companies is gaining steam. BP's shares rose 1.8% to GBP5.48, or about $7.50, in London trading on Tuesday. The stock hit a two-year high of GBP6.58 on April 21, 2010, the day after the Deepwater Horizon explosion, which killed 11 and sent oil spewing into the Gulf of Mexico, resulting in the worst offshore oil spill in U.S. history. Once investors realized the scale of the disaster, BP shares hurtled lower, hitting a low of GBP2.96 in June 2010. Then-Chief Executive Tony Hayward resigned the following month, and BP started what would turn out to be a multiyear, multibillion-dollar effort to recover. To pay for cleanup costs and legal fees, BP was forced to sell off billions of dollars in assets, dramatically shrinking the size of the company. To date, the spill has cost BP more than $65 billion. The company agreed to a landmark $20 billion deal to settle all federal and state claims for the accident in 2015. Since then, executives, including current chief Bob Dudley, have tried to turn the page on the disaster. Part of that effort has been a plan to return its oil-and-gas production to four million barrels a day, while boosting profits and cash flow. The company said Tuesday its replacement cost profit -- a number analogous to the net income that U.S. oil companies report -- was $2.4 billion in the first quarter, compared with $1.4 billion in the same period a year earlier. The last time it reported profit of that size was in the third quarter of 2014, when oil prices were hovering near $100 a barrel. In addition to its Deepwater Horizon woes, BP suffered with the rest of the industry through years of low oil prices. Oil prices fell to about $25 a barrel in 2016, before rebounding. International crude is now trading near $75 a barrel. The company's first-quarter production rose 6% from a year earlier. BP started a record number of projects around the world last year and intends to initiate six more in 2018, part of a plan to add 900,000 barrels a day of new production by 2021. That would return output to near its pre-Deepwater Horizon levels of roughly four million barrels a day. On Tuesday, it said it pumped 3.7 million barrels a day in the first quarter. BP finance chief Brian Gilvary raised the prospect that the company would consider raising its dividend in the second half of the year as it expects debt levels to subside. It kept its payout unchanged for the first quarter. But BP still hasn't escaped the financial liabilities of the Deepwater Horizon disaster. The company said it paid out $1.6 billion in the first quarter, including the final installment from a settlement with the U.S. Justice Department to resolve all criminal claims. For the full year, payments are expected to total just over $3 billion. The company faces charges of about $2 billion next year, and then more than $1 billion a year out past 2030. BP caps a mixed earnings season for the world's biggest oil companies. Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC posted their best first-quarter profits in years, but investors remained skeptical of companies that failed to meet expectations when oil prices were at their highest level since 2014. Write to Sarah Kent at sarah.kent@wsj.com (END) Dow Jones Newswires May 02, 2018 02:47 ET (06:47 GMT)
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20/3/2018
12:47		ariane: Why I’d avoid this dividend stock and buy 6% yielder BP plc instead Roland Head | Tuesday, 20th March, 2018 | More on: BP WG Image source: Getty Images. I believe it’s time for investors to get choosy about dividend stocks. With the FTSE 100 trading at the lowest levels since December 2016, there’s plenty of choice for income hunters. A quick review of the big-cap index shows around 40 stocks with a forecast yield of at least 4%. If you expand your search to include the FTSE 250 as well, that number rises to about 100. Today I’m looking at two dividend stocks I’d like to own at the right price. A mixed picture In my opinion, energy services firm John Wood Group (LSE: WG) — now known as ‘Wood’ — is a good company. But last year’s £2.2bn acquisition of rival Amec Foster Wheeler will take a while to digest. The Wood share price was down by 5% at the time of writing, after the firm’s 2017 results revealed a full-year loss of $30m, thanks to $165m of one-off costs. These figures show that the group’s pro forma revenue — adjusted to include Amec Foster Wheeler for comparison purposes — fell by 12% to $9,882m last year. Proforma adjusted operating profit fell by 11% to $598m. Adjusted operating margin was unchanged at 6%. Looking at the actual figures, Wood ended last year with adjusted earnings of 53.3 cents per share, 16.8% lower than in 2016. Despite this, the dividend was increased by 3% to 34.3 cents per share. Too soon to buy? I’m confident that as the oil and gas market recovery continues, earnings will improve. I’m also fairly comfortable that the group’s management will do a decent job of integrating Amec Foster Wheeler, which is expected generate cost savings of $170m over three years. However, the Amec deal has left the combined group with net debt of $1,646.1m. This equates to 2.4 times earnings before interest, tax, depreciation and amortisation (EBITDA). The company aims to reduce this to between 0.5x and 1.5x EBITDA “within approximately 18 months”. I believe this could be challenging. Earnings are expected to rise by 16% this year, putting the shares on a forecast P/E of 13.5 with a prospective yield of 3.7%. This could be good entry point. But with debt reduction a priority, I don’t think there’s any rush. I’d watch for opportunities to buy below 600p. Why I’d snap up this 6% yield Services companies like Wood have yet to see the full benefit of the oil market recovery. But producers such as BP (LSE: BP) are already one step ahead. They’ve cut costs and are enjoying surging profits thanks to higher oil prices. BP’s underlying earnings are expected to rise by 40% to $0.44 per share this year. This should provide additional support for the dividend and enable the group to start reducing its debt levels. Forecast dividend cover of 1.1x earnings is still slim, but it means the payout will be covered by earnings for the first time since 2015. I believe that hitting this milestone means the dividend should be safe for the foreseeable future. The $0.40 per share payout could even start to rise over the next few years. BP’s share price has fallen by nearly 15% since January. Trading on a 2018 forecast P/E of 15 with a prospective yield of 6.1%, I rate the stock as a strong buy for income. Buy-And-Hold Investing Our top analysts have highlighted five shares in the FTSE 100 in our special free report "5 Shares To Retire On". To find out the names of the shares and the reasons behind their inclusion, simply click here to view it immediately with no obligations whatsoever! Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended BP. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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28/2/2018
17:10		ariane: BP plc and this growth monster could make you stunningly rich Harvey Jones | Wednesday, 28th February, 2018 | More on: BP WEIR Image source: Getty Images. I have kept one eye open for Glasgow-based hydraulic pump maker Weir Group (LSE: WEIR) ever since I almost bought it five years ago, and it has endured a bumpy ride since then. However, it is rising today, the share price up 2% on publication of its full-year results for the year ended 31 December. Weir strong The results are headlined “Delivering strong growth and strategic progress” and included a 20% rise in group orders as demand for its technology and services increased in its main markets. Profits before tax rose 47%, driven by excellent growth and operational leverage from oil and gas. Weir is benefitting from the oil price resurgence and increased activity in US shale, which has boosted demand for its drilling and fracking equipment. Oil and gas orders increased 67% last year, with North American upstream increasing a whopping 82%. Return on capital employed increased 290 basis points. Digging deep Investors will also have been buoyed by this line from CEO Jon Stanton: “Looking to 2018, assuming market conditions remain supportive and despite anticipated foreign exchange headwinds, we expect to deliver strong revenue and profit growth and further balance sheet deleveraging.“ Stanton said the industrials group has worked closely with customers to identify opportunities to increase their productivity and invested early to take full advantage of improving conditions. This drove order momentum in its minerals operation, which delivered consistent growth in its high-margin, cash-generative after-market, and positioned it decisively for the anticipated upturn in the mining capital cycle. Its oil & gas operation took full advantage of improving markets in North America. The £4.57bn company’s forward valuation of 16.9 times earnings now looks relatively undemanding, given today’s success, while its PEG is just 0.4. City analysts are pencilling in 39% earnings per share (EPS) growth for 2018, and 15% in 2019. Current yield is 2.4%, covered a healthy 2.5 times. My Foolish colleague Peter Stephens reckons it is a buy. Nothing more to add except a cheery: Here Weir go. Buy BP Oil and gas giant BP (LSE: BP) has also had a bumpy few years due to the fluctuating oil price, although it has also suffered a few embarrassing personal problems. The share price is slowly getting out of deep water, even if the last month has been bumpy. Brent crude at $70 a barrel was a turbocharger, although it may get little further support from that corner as energy prices slip. RBC Capital Markets still reckons BP is set to outperform after the last year of transition, due to its growing upstream base and favourable dynamics in the downstream, the latter of which “may be under-appreciated by the market”. $30 oil My Foolish colleague Rupert Hargreaves is more than appreciative, recently naming BP the buy of the decade. With management driving down its break-even point to $47 per barrel last year and targeting somewhere in the $30s, BP could continue to pump out the profits even if the oil price plunges again. The £95bn energy behemoth trades at a forecast valuation of just 15.1 times earnings, good for a company with such major prospects. Its EPS are forecast to rise a whopping 156% this year. The yield is 6.1%. If BP is not in your portfolio, you must really hate oil companies. We reckon we could just have an even more exciting growth prospect for you right here. This mid-cap company has been turning on the style lately and one of the Motley Fool's top analysts reckons it is the latest British brand with the potential to go global. To find out its name you simply need to download our special report A Top Growth Share From The Motley Fool. Click here to read this no obligation report. It will be yours in moments and won't cost you a single penny. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended BP and Weir. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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04/2/2018
17:20		florenceorbis: Sunday 4 February 2018 4:46pm BP is set to show a huge rise in profits, but Deepwater Horizon and tax charges will bite Share Courtney Goldsmith I am a journalist for City A.M. reporting on the Industrials sector, including o [..] Show more Follow Courtney MEXICO-BRITAIN-OIL-BP-EXPANSION BP will report its full-year results this week (Source: Getty) BP is poised to unveil a surge in annual profits this week on the back of stronger oil prices, but charges over the fatal Deepwater Horizon incident and US tax changes are set to dent the results. Brent crude oil prices rose steadily over the second half of 2017 from a low of $46 a barrel in June. At the start of 2018, Brent hit more than $70 a barrel for the first time in about three years. Michael Hewson, chief market analyst at CMC Markets UK, noted that BP's break-even price was $49 a barrel at its last trading update, and last quarter oil prices averaged $58 a barrel, allowing profits and revenues to show a "significant increase". Read more: BP's invested in an electric car charging startup "The BP turnaround story has been a long road from the tragic events back in 2010 which saw the share price halve in the space of three months. With the share price back to April 2010 levels once again it would be tempting to say the turnaround is complete, but those Gulf of Mexico events are still a significant legacy issue for the business," Hewson said. The Deepwater Horizon disaster in the Gulf of Mexico has already cost BP more than $60bn (£42bn), but the firm will book an additional $1.7bn charge in the fourth quarter as it winds down a settlement, taking the year’s total cash payments related to the fatal oil spill to around $3bn. BP will also take a one-off $1.5bn hit due to Donald Trump's radical US tax reforms, which it said will positively impact the company in the long term. Analysts will also be on the lookout for further reassurances on the company's dividend by focusing on BP's capital investment plans, disposals and net debt, which stood at $40bn in the third quarter. BP will report its full-year results on Tuesday 6 February.
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04/1/2018
22:29		the grumpy old men: Better Buy: ConocoPhillips vs. BP These oil industry titans have a lot in common. Which is most likely to outperform? John Bromels (TMFTruth2Power) Jan 4, 2018 at 2:16PM As 2018 begins, the oil and gas industry seems to be caught in an upward trend for a change. Oil prices are rising, and so are company share prices. Take, for instance, British oil major BP (NYSE:BP) and U.S. independent producer ConocoPhillips (NYSE:COP). Both have seen double-digit share price increases in the past year, with BP and Conoco both higher by about 12%. The companies' managements have high hopes for 2018. Let's compare these companies on three metrics to try to determine which is the better buy heading into the new year. A row of pump-style oil wells in a desert landscape BP and Conoco shares have been outperforming the S&P for the past six months. Is this the start of a trend? Image source: Getty Images. Dividend: more than yield A dividend is an important piece of the value equation for an oil and gas company, and luckily for investors, both BP and Conoco reward shareholders through dividends. But BP's yield is fully three times what Conoco is yielding: 5.7%, to Conoco's 1.9%. Both yields have dropped a bit as the companies' stock prices have risen, but that's still a huge difference. It's not all about current yield, though. A company's payout history is important, too, and both of these companies have slashed their dividends in recent memory. BP, of course, was forced to cut its payout in the wake of the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. ConocoPhillips cut its dividend by nearly two-thirds more recently, in 2015 as a result of the oil price slump. So neither company is a stranger to a cut, and both have had a spotty history in recent quarters as far as dividend coverage is concerned. Given these similarities, the superiority of BP's yield has to carry the day. Winner: BP. Returns: an unfair advantage Metrics such as return on capital employed (ROCE), return on invested capital (ROIC), and return on equity (ROE) measure how successful a company's management has been in deploying investors' cash. And in all three of these metrics, you'll notice something very different about BP's numbers vs. Conoco's: Metric BP Conoco ROCE 3.8% (3.6%) ROIC 2.4% (4.2%) ROE 4% (7.4%) Data source: YCharts. All figures on a trailing-12-month basis. Chart by author. BP's return metrics are all positive, while Conoco's returns are all negative. That would seem to indicate that BP's management has been doing a far better job of managing the company's capital than Conoco's has. But those numbers don't tell the whole story. As an independent oil and gas exploration and production company, Conoco's business was hit particularly hard by the oil price downturn. While the larger BP had a profitable downstream refining and marketing business to help buoy the company's finances, Conoco did not. So while both companies' returns have taken a hit since 2014, Conoco's were hit far harder. Both companies have improved their returns since mid-2016, but Conoco has had a deeper hole to climb out of. In other words, this may say less about Conoco's management than it does about the inherent strength of diversification at BP. Still, whether it's coming from better management, a better business model, or luck of the draw, BP still comes out ahead in this category. Winner: BP. Powered By Plans: what to expect Past returns and current yield can only tell us so much, though. Investors should also consider what these companies are planning for the future. Conoco is definitely looking to turn the page on an unprofitable couple of years. The company has made big strides since 2015 to right its business model, selling off underperforming Canadian assets and introducing a shareholder-friendly business plan. It's hoping to grow its dividend, buy back shares, and continue reducing its debt. Those plans have already been rewarded, as the market has bid up the company's stock by about 25% in the past six months alone. But BP has big plans, too, recently announcing plans to restart its share-buyback program, making it the first of the oil majors to do so. It's seeing big production gains from some major projects it began in 2017, including big gas projects in Egypt and offshore Trinidad, which should also pay off for investors. This one's a tough call, but I'm going to give it to Conoco because of the level of detail in its plan. Winner: ConocoPhillips. A lopsided contest BP has by far the better dividend yield and return metrics, and a comparable plan to reward shareholders in the future. And while it's tough to compare the companies' valuations because of recent gaps in positive quarterly earnings or positive quarterly free cash flow, BP's enterprise value-to-EBITDA ratio -- another valuation metric -- is more favorable than Conoco's on both a forward and trailing basis. In light of all that, BP is clearly the better buy right now. That said, it's entirely possible that Conoco will flawlessly execute its plan while BP stumbles. And, of course, there's always the possibility that some unforeseen event -- a la Deepwater Horizon -- could come along and derail either company. Oil and gas investors should keep an eye on both companies, but for those buying in now, BP looks like the best bet.
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04/12/2017
10:05		la forge: Home » Reports » Broker Ratings » BP plc 36.3% Potential Upside Indicated by Barclays Capital broker ratings BP plc 36.3% Potential Upside Indicated by Barclays Capital Posted by: Amilia Stone 4th December 2017 BP plc with EPIC/TICKER (LON:BP) had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘OVERWEIGHT217; this morning by analysts at Barclays Capital. BP plc are listed in the Oil & Gas sector within UK Main Market. Barclays Capital have set their target price at 675 GBX on its stock. This is indicating the analyst believes there is a potential upside of 36.3% from the opening price of 495.3 GBX. Over the last 30 and 90 trading days the company share price has decreased 25.8 points and increased 48.3 points respectively. The 1 year high stock price is 529 GBX while the year low share price is currently 436.95 GBX. BP plc has a 50 day moving average of 498.52 GBX and the 200 Day Moving Average price is recorded at 469.50. There are currently 438,878,705 shares in issue with the average daily volume traded being 30,918,554. Market capitalisation for LON:BP is £98,176,977,551 GBP.
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10/11/2017
16:48		sarkasm: Why Grabbing A Piece Of BP Now Is A Good Move Nov. 10, 2017 10:58 AM ET| 1 comment| About: BP p.l.c. (BP) Gary Bourgeault Gary Bourgeault Long only, research analyst, portfolio strategy, media (4,537 followers) Summary Profits in the 3rd quarter double. Highly likely to reach its 2020 target of 800,000 BOE a day. Cost-cutting measures allow the company to generate a profit with oil at $50-$60 per barrel. Dividend safe and will probably start to be increased. source: CNBC After it recent earnings report BP (BP) unsurprisingly enjoyed a nice boost in share price, as the market acknowledged it has turned the corner. Somewhat surprising is it has fallen back to levels prior to its earnings report, which investors should consider a buying opportunity. I see BP starting on a long-term run where it'll perform as a growth and revenue stock over the next few years. The company guided for production to climb sequentially, as it started its natural gas production at the Khazzan field in Oman. That's the 6th of 7 projects the company has launched in 2017. Costs associated with covering CapEx and its dividend has dropped to $49 per barrel, so if the price of Brent Crude remains close to $60, we're going to see free cash flow increase quickly. Even it pulls back to around $55, the company will grow free cash flow, albeit it at a more modest level. BP chief financial officer Brian Gilvary, said this to the Financial Times: “We are back to a new normality. We’ve come through the oil price correction and we’ve got things back into balance earlier than planned.” Outlook for oil price and BP's management of it Gilvary noted that he thinks oil will remain in the $50-60 per barrel range, and the company has made plans based upon that scenario. He added that the strategy of BP includes the flexibility of lowering its break-even point to about $45 per barrel if market conditions warrant it. For 2018, BP assumes the price of oil to be approximately $50-$55 per barrel. “We’re in a much stronger position now to manage wherever the price decides to go next because we’ve done the heavy lifting of getting the cash [break-even point] back down,” added Gilvary. As for the price of oil, a lot hinges upon the pace of growth in demand versus the length of time the production cut deal remains in place, and how strongly the participants adhere to the terms. It appears shale production has slowed down for a time; although I wouldn't count out it increasing over the next couple of years. Rig counts aren't important as they used to be because of the significant increase in productivity among shale producers, so it's not as accurate as a metric as it used to be in that regard. The number or rigs that are operational could be lower than in the past, while producing significantly more oil. Another factor on the stockpile side is DUC wells in reality are their own storage facilities, and they can quickly be completed and brought into production. So inventory levels in the U.S. also have to be measured differently than before the shale revolution. When adding the key factors together, I do think oil can hold in the range of $50 to $60 per barrel, but as I've mentioned a number of times, the exit strategy associated with the production cuts remains an unknown. How that will be implemented without it disrupting the supply and the price of oil remains a mystery. All that I can see is demand rising to high enough levels where it will need the supply from these countries to meet it. If that doesn't happen, there is no way an exit won't put downward pressure on oil prices. How I see it at this time is the most likely outcome will be demand will rise, but not enough to fully offset the amount of oil returned to the market. The result will be some downward pressure on oil, but probably not to levels so devastating it would crush the oil industry as it did in the recent past. For that reason, I think BP is well positioned to at least break-even under a mildly stressed oil price. If shale oil surprises once again to the upside, it would produce a difficult environment to generate a sustainable profit for BP. For now, it should be able to build up its cash in order to protect its dividend from being cut under almost any scenario that emerges. BP's actions show it sees ongoing support for oil The market liked BP's decision to renew its share repurchase program, suggesting it is confident it can continue to improve its balance sheet while growing the company. Again, it also points to the company believing the price of oil has found sustainable support going forward. Among management in the sector, I have more confidence in the long term outlook of BP for oil demand than most others. The reason I do is because it refused to be politically correct in the sense of repeating the narrative of how disruptive renewables will be to the oil market. It's not that they don't seeing it growing and increasing share, only that the time frame many see it happening in they disagree with. BP sees demand growing through about 2040 before leveling off. Most other companies think it's going to be a lot sooner than that. I believe BP is correct. One example is the demand for SUVs in China, which is expected to climb to 150 million vehicles by 2025. Most of those will be powered by gasoline. Another factor not being considered by some in the market is the growth of petroleum-based products. This is being looked at as a long-term growth market by the industry. Cars, trucks and SUVs aren't the only things driving oil demand. Performance against the market Depending on the metric being used, BP has underperformed and outperformed the market. On the outperformance side, it has beating the industry's 5.7 percent growth, with BP up 10 percent, according to Zacks. Its dividend also beats Zacks Oil International Integrated industry, which was 4.1 percent, with BP paying out 5.7 percent as of this writing. If you measure BP's performance against the FTSE 100 over the last 5 years, it's results havn't been as impressive. During the last 5 years the FTSE is up 28 percent, while BP is only up 17 percent during that same period. One positive for investors located in the UK is the pound has dropped in value against the U.S. dollar, which means they experience an increase in profits when measured in that way. During that time BP's dividend probably didn't offset the difference in growth rates, but now I see it being in a strong position to outperform the FTSE going forward, while at minimum keeping its dividend yield in place, and if the price of oil cooperates, increasing it consistently in the years ahead. Conclusion I think BP has now turned the corner, and if the price of oil remains above $50, it'll start to provide shareholders with growth and income. If it can reach its goal of increasing its output to 800,000 BOE a day by 2020, it's going to give the stock a strong boost; that will probably find support, especially if BP continues to lower its cost structure. I don't think it has it cutting break even as a drop back position, but rather is something it'll continue to work to improve upon until it reaches $45 per barrel. Under that scenario, BP would be positioned nicely for long-term growth. Add to this the waning costs associated with the Deepwater Horizon spill, and the outlook for BP is the best it's been for a long time. The price of oil is outside the hands of BP's management, but if it continues to find support, the company will grow free cash flow. The only question left is at what pace that will happen. That means we should expect an increase in its dividend over time while easily funding its debt load, while at the same time expanding projects that offer the company long term growth. It's expected 2018 P/E of 18 is a little hefty, but I still think when considering the overall health and outlook of the company, it's well worth it. This is a good time to take a position in BP. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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27/10/2017
10:38		waldron: By Sarah Kent This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (October 27, 2017). The world's biggest oil companies have a suddenly popular measure for success: breaking even. Once obscure and little noted, the break-even number has become an obsession for investors in oil giants such as Exxon Mobil Corp., BP PLC and Chevron Corp. as crude prices stay mired between $50 and $60 a barrel. At its simplest, the metric represents the oil price that a company needs to generate enough cash so it can cover its capital spending and dividend payouts. Brent crude was trading at just below $60 a barrel this week, down from over $114 in June 2014. BP says its break-even was $47 a barrel in the first half of the year, and the company is targeting between $35 and $40 a barrel by 2021, assuming prices stay about where they are today. Overall, Europe's biggest oil companies have cut break-evens to around $50 a barrel, according to Barclays. Exxon doesn't release a break-even but has succeeded in covering its costs with cash from operations for the last three quarters, when international benchmark Brent crude averaged just over $51 a barrel, according to Barclays. Investors focused on the healthy dividends that make oil-company stocks appealing say they will be watching for news about break-even prices as Exxon, Chevron and Total SA prepare to announce third-quarter earnings on Friday, and BP and Royal Dutch Shell PLC next week. "It's a crucial thing we look at," said Rohan Murphy, energy analyst at Allianz Global Investors, which holds stocks in BP and other large oil companies. "If the oil price were $70 it wouldn't matter so much, but at the moment we're on a knife edge, so it matters more." The industry's intense focus on the break-even represents a stark change from the era of rising oil prices, when the emphasis often was more on companies' ability to increase production rather than to generate cash. BP's share price slumped 4% in February after the company said it needed oil to hit $60 a barrel to break even this year. Six months later, BP said spending cuts allowed the company to break even at $47 a barrel in the first half. The stock moved up 2%. The company has kept its dividend unchanged throughout the downturn. At Total's investor day last month, the phrase "break even" came up around 30 times. Big oil companies say they have made progress in cutting costs since 2014, when oil prices entered a long downturn. The companies say they can maintain those lower levels of spending, bring down their break-even costs further and begin again to expand their operations -- all without relying on an oil-price recovery. "The break-even cost of oil and gas companies is going to the $40s and $30s today," BP Chief Executive Bob Dudley told the Oil & Money conference in London this month. "It's actually healthy. I think $100 a barrel was not healthy." Investors, however, remain nervous about the viability of their dividends. While big oil companies are back in black, many of them are still not generating enough cash to cover the payouts, despite ambitious targets to lower break-even prices. The methods companies use when disclosing their break-even prices often vary from company. Chevron says it can break even this year at $50 a barrel -- if revenue from its asset sales is included. Total says it will be able to break even at less than $30 a barrel in 2019 -- excluding its dividend costs. Total, Shell and other companies use so-called scrip programs that allow them to pay a portion of their dividend in company stock, which helps them bring down the oil price they need to cover spending. While effective, the tactic isn't sustainable in the long-term without diluting investors' holdings. Companies also often refer to project-specific break-evens, another metric that has new currency since prices crashed. Shell has said it is looking at new projects that can be profitable even if oil is at less than $40 a barrel, but that doesn't reflect the overall price the company needs to cover spending and dividends. U.S. shale-oil players have faced particular criticism from investors over how they define project break-evens, sometimes not accounting for all associated costs, such as the amount they pay to lease land. Most shale companies claim their wells generate a 20% rate of return or higher, even at today's prices. Yet in the last three years, almost none has posted a positive quarterly net income. Few investors cared about the break-even when oil prices were $100 a barrel or more. Back then, the industry was consumed with finding new sources of oil, resulting in spending that caused the break-even for big European companies to balloon to $152 a barrel in 2013, Barclays says. Now, companies that once chased megaprojects are using new technology to eke out more barrels and lower costs. BP said it expects production costs this year to be 40% lower than in 2013. Chevron is working to bring down its break-even to a point where it can sustain the company's decadeslong tradition of dividend increases. Shell is moving toward a lower debt target that will allow it to turn off its scrip program and commence share buybacks. In a sign that things are improving, Norway's Statoil ASA said Thursday it will remove its scrip program in the fourth quarter, fully covering its dividend with cash. Total has said it would be able to cover its full cash dividend at $50 a barrel in 2019. ""The world has completely changed," Total Chief Executive Patrick Pouyanné told reporters earlier this month. --Lynn Cook contributed to this article. Write to Sarah Kent at sarah.kent@wsj.com (END) Dow Jones Newswires October 27, 2017 02:47 ET (06:47 GMT)
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03/2/2017
21:20		gary38: Hurricane Energy and EnQuest among the few 'buys' left in oil sector - MacquarieShare 11:33 03 Feb 2017"Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view.oil platformValuations in the oil sector have caught upIt is harder work picking winners in the oil and gas sector now that crude prices have steadied and share prices have climbed, so says Macquarie.Kate Sloan, analyst at Macquarie, most share prices are close to fair value and as a result many in the sector have been downgraded.Cairn Energy PLC (LON:CNE), Faroe Petroleum plc (LON:FPM), Ithaca Energy Plc (LON:IAE), Premier Oil PLC (LON:PMO) and Tullow Oil plc (LON:TLW) are all relegated to a 'neutral' rating.Three of Macquarie's 'top picks' retain their 'buy' recommendations; Hurricane Energy Plc (LON:HUR), EnQuest Plc (LON:ENQ) and Africa Oil Corp (TSE:AOI).Of the three, Hurricane Energy is deemed to have the clearest value opportunities."Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view."Further exploratory drilling (ongoing) and progress on the Lancaster development could add significant value, building on the success the company enjoyed in 2016."Macquarie has a 90p price target for Hurricane (current price: 51.25p).EnQuest, meanwhile, is Macquarie's pick for further oil price leverage combined with low risk project progression."Although the rest of the sector now reflects a much higher discounted oil price than it did four months ago, EnQuest is still discounting US$63/bbl, the same number it was back in August 2016," Sloan said."We believe the valuation gap will be narrowed in the coming months once the market starts to believe in Kraken delivery."Macquarie has a 79p target price for EnQuest (current price: 46.34p).Sloan added that Africa Oil's has very attractive upside through de-risking the discoveries in Kenya's South Lokichar basin, where it partners Tullow.
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