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 Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.80p -0.59% 472.20p 472.15p 472.20p 473.95p 470.00p 473.75p 5,126,695 11:20:17
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 181,084.0 5,315.9 12.7 38.4 93,295.98

BP (BP.) Latest News

More BP News
BP Takeover Rumours

BP (BP.) Share Charts

1 Year BP Chart

1 Year BP Chart

1 Month BP Chart

1 Month BP Chart

Intraday BP Chart

Intraday BP Chart

BP (BP.) Discussions and Chat

BP (BP.) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
11:20:16472.155,22024,646.23O
11:20:16472.2063297.49AT
11:20:07472.259954,698.89AT
11:20:07472.254672,205.41AT
11:20:07472.253411,610.37AT
View all BP trades in real-time

BP (BP.) Top Chat Posts

DateSubject
21/2/2018
08:20
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 475p.
British Petroleum has a 4 week average price of 452.50p and a 12 week average price of 452.50p.
The 1 year high share price is 536.20p while the 1 year low share price is currently 436.95p.
There are currently 19,757,724,586 shares in issue and the average daily traded volume is 28,166,372 shares. The market capitalisation of British Petroleum is £93,305,854,357.39.
06/2/2018
11:38
grupo: LONDON-- BP PLC posted its first quarterly loss since mid-2016 on Tuesday, largely because of charges from the 2010 Gulf of Mexico blowout and the U.S. tax overhaul, but 2017 proved its most profitable year overall since oil prices crashed. A relatively strong set of fourth-quarter profits for BP were effectively wiped out by a nearly $1 billion paper loss related to U.S. corporate-tax changes and a $1.7 billion charge from unexpectedly high settlements from the Deepwater Horizon accident. The company recorded a $583 million loss for the fourth quarter. However, BP says the U.S. tax overhaul enacted late in 2017 will be positive in the long term. The company says its Gulf of Mexico costs are manageable and are largely wrapping up. The British oil-and-gas company was buoyed by a recovering crude market during a fourth quarter when oil prices averaged over $61 a barrel--up 24% from the same period in 2016. For all of 2017, BP said its replacement cost profit--a number analogous to the net income that U.S. oil companies report--was $2.8 billion, compared with a loss of $1 billion in 2016. It was BP's first annual profit since 2014. The company reported stronger production and healthy earnings from its refining and marketing division. BP Chief Financial Officer Brian Gilvary said the company expects to cover its spending and dividend with cash from operations at $50 a barrel this year. The company is targeting a break-even price of $35 to $40 a barrel by 2021. "This time last year we were talking about $60 a barrel, so we have a pretty good trajectory," Mr. Gilvary said. The company's net debt rose 6% to $37.8 billion in 2017 compared with a year earlier, although it was on a downward trajectory in the fourth quarter compared with the three previous months. BP's break-even oil price in 2018 is more like $56 a barrel, said Jason Gammel, oil-industry analyst at investment bank Jefferies, who wrote that his outlook for the company was "mildly positive." BP's share price dropped over 2% in London trading Tuesday morning, though losses narrowed to 1.3% later. It was largely a result of the negative sentiment that has driven a stock selloff around the world and BP was down less than the FTSE100 and rival Royal Dutch Shell PLC. BP's earnings are the latest in a choppy reporting season for big oil companies. Shell's net profit tripled last year, but a drop off in cash flow in the fourth quarter raised concerns among investors. U.S. rivals Exxon and Chevron both missed earnings expectations and suffered a substantial sell off as a result. BP is still trying to convince investors it can regain its position among the elite tier of big energy companies. The company has lagged its peers since the fatal Deepwater Horizon explosion and oil spill in the Gulf of Mexico eight years ago. The disaster forced the company to sell off billions of dollars in assets to help finance a bill to cover clean up and legal costs that has ballooned to more than $60 billion. BP outlined a path last February to boost profits and return to its former size by the early 2020s. The company's return to profit last year reflects early success in delivering on that plan. Excluding its share in Rosneft, BP's production rose 12% in 2017 and in a sign of growing financial resilience, the company began a share buyback program in the fourth quarter. BP Chief Executive Bob Dudley described 2017 as "one of the strongest years in BP's recent history," adding that the company was increasingly confident it could continue to deliver growth. Write to Sarah Kent at sarah.kent@wsj.com (END) Dow Jones Newswires February 06, 2018 05:26 ET (10:26 GMT)
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.
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.
04/1/2018
11:38
waldron: broker ratings BP plc 30% Potential Upside Indicated by Barclays Capital Posted by: Amilia Stone 4th January 2018 BP plc using EPIC/TICKER code (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 a target price of 675 GBX on its stock. This now indicates the analyst believes there is a possible upside of 30.0% from the opening price of 519.2 GBX. Over the last 30 and 90 trading days the company share price has increased 27.45 points and increased 29.2 points respectively. The 52 week high share price is 529 GBX while the 52 week low is 436.95 GBX. BP plc has a 50 day moving average of 508.46 GBX and a 200 day moving average of 474.57. There are currently 19,694,995,169 shares in issue with the average daily volume traded being 24,498,059. Market capitalisation for LON:BP is £102,551,842,249 GBP.
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.
14/11/2017
10:29
grupo guitarlumber: directors talk provided by way of an AI ALGO it seems BARCLAYS GOES FOR THE HIGH PITCH AS USUAL JAM TO MORROW as the oil can is kicked down the road BP plc 33.4% Potential Upside Indicated by Barclays Capital Posted by: Amilia Stone 14th November 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 a target price of 675 GBX on its stock. This would indicate that the analyst believes there is a potential upside of 33.4% from today’s opening price of 506 GBX. Over the last 30 and 90 trading days the company share price has increased 14.5 points and increased 59.4 points respectively. The 1 year high share price is 529 GBX while the 52 week low is 432.15 GBX. BP plc has a 50 day moving average of 485.89 GBX and the 200 Day Moving Average price is recorded at 466.50. There are currently 19,919,392,385 shares in issue with the average daily volume traded being 26,968,678. Market capitalisation for LON:BP is £100,848,896,466 GBP.
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.
01/11/2017
11:48
ariane: BP Signals Optimism With New Buybacks -- WSJ 01/11/2017 7:02am Dow Jones News Total (EU:FP) Intraday Stock Chart Today : Wednesday 1 November 2017 Click Here for more Total Charts. 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 (November 1, 2017). LONDON -- BP PLC on Tuesday said it would restart its share buyback program after posting healthy third-quarter earnings, the latest signal that the oil industry has found its footing amid a modest crude-price recovery. The U.K. oil giant said its strengthened financial position allowed it to begin a share repurchase program in the final three months of 2017, though it didn't put a value on future buybacks. With Brent crude, the international benchmark, trending over $60 a barrel for the first time since 2015, BP's move ranks among the first actions showing big oil companies are healthy enough to sweeten the pot for investors who had soured on the sector. BP hasn't had a share buyback program since oil prices crashed in 2014, falling from over $114 a barrel to less than $28 a barrel in early 2016. Other companies like Exxon Mobil Corp. and Chevron Corp. have also moved away from the practice while they grappled with the oil-price slump. BP said it could restart buybacks because it had driven its costs so low that it can generate enough cash to cover its spending commitments and dividend at $49 a barrel. Investors are increasingly looking at this break-even metric for signs big oil companies have succeeded in shifting their financial frameworks to operate profitably at lower oil prices. "We're confident we can balance the books at $50 next year, and even manage as low as $45. That's what gave us the confidence to raise the idea of buybacks with the board," Chief Financial Officer Brian Gilvary said in an interview. Overall, BP's replacement cost profit -- a number similar to the net income that U.S. companies report -- was $1.4 billion in the third quarter, down slightly from $1.7 billion in the same period a year earlier. But its underlying financials were strong, sending its intraday share price to highs not seen since three years ago, when oil prices were over $100 a barrel. BP shares closed up 1.7% Tuesday in London. The company's refineries reported their highest underlying earnings in five years, its exploration and production unit returned to profit, and the company's oil and gas output surged 14% in the third quarter. BP is the latest major Western oil company to report profitable results for the third quarter. Last week, Exxon and Chevron both reported increases in third-quarter profits of 50% compared with the prior year. French oil company Total SA's earnings jumped 40%. Royal Dutch Shell PLC will report earnings on Thursday. BP's production rose year-over-year to 3.6 million barrels a day in the quarter, as new projects in Australia, Trinidad and Oman began production -- the latest in a series of developments expected to start up by 2020 that will bring the company's production back up to levels last seen before its fatal blowout in the Gulf of Mexico in 2010. BP is still working to move past the disaster, with the final tab growing past $60 billion. But with most of those payments now made, the company has signaled it is ready to grow again and is able to do so, even in a low oil-price environment. Investors have been wary of big oil companies in recent years, concerned they couldn't generate enough cash to cover big dividends. The move "is an important signal on the confidence of the board and management on cash flow," Barclays said in a note on Tuesday. Share buybacks are popular with investors because they reduce the amount of company stock in circulation and tend to boost share value. For BP, the buybacks help offset perceived weakness in its dividend. The company uses a so-called scrip dividend program, giving shareholders the option to take their dividend in stock and alleviating the cash burden of dividends. Such programs proved helpful to oil companies during the downturn, but they also dilute the value of shareholdings. Investors are increasingly eager to see companies fully cover their dividends with cash. So far Norway's Statoil ASA is the only major oil company to announce plans to halt the scrip program altogether, and BP remains among the first to take steps to offset dilution. Mr. Gilvary said BP had discussed the possibility of removing the scrip program altogether with its board, but concluded some investors liked the option. Write to Sarah Kent at sarah.kent@wsj.com (END) Dow Jones Newswires November 01, 2017 02:47 ET (06:47 GMT)
27/10/2017
09:38
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)
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.
BP share price data is direct from the London Stock Exchange
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:42 V: D:20180221 11:35:17