Below are key drivers of BP's value that present opportunities for upside or downside to the current Trefis price estimate for BP:
For additional details, select a driver above or select a division from the interactive Trefis split for BP at the top of the page.
BP is one of the world’s leading oil & gas companies with operations in more than 80 countries, providing customers with fuel for transportation, energy for heat and light, retail services, and petrochemical products for everyday items.
As a global player, BP's operations and activities are held or operated through a variety of structures including subsidiaries, jointly controlled entities, or associates established which are subject to the legal systems of many different jurisdictions. The company's operations cover two main business segments: Exploration & Production (or Upstream) and Refining & Marketing (Downstream). BP also has some presence in the alternative energy space through its activities in biofuels, wind, solar, hydrogen power, and carbon capture and storage (CCS).
Proved reserves is an extremely critical metric for an oil and gas exploration and production company. It represents the total quantity of technically and economically recoverable oil and gas reserves owned by the company at a given point in time. It directly impacts the company's production growth outlook. At the end of 2017, BP's total proved reserves stood at over 18.44 billion oil-equivalent barrels (both developed and undeveloped). These reserves consist more of more-profitable liquids (crude oil and natural gas liquids).
BP started production from as many as eight new upstream projects in 2012 and 2013. In 2014, the company brought another seven new upstream projects online. These projects contributed significantly to the 2.2% y-o-y growth in its underlying oil and gas production in 2014. Currently, the company is working on several new projects that are expected to bring online over 1 MMBOED of cumulative production – net to BP – by 2021. These projects are expected to generate 35% higher cash operating margins and 20% lower development costs in contrast with the company's base portfolio in 2015.
It is estimated that a large part of the world's oil reserves have already been discovered. Recent statistics have indicated that global consumption has been outpacing reserve additions. Peak oil is a commonly used term to describe the point at which world oil output will reach a maximum and decline afterward.
However, many institutions, such as the International Energy Agency (IEA), believe that peak oil will not occur for another 25 years at the very least. Many governments across the world are promoting alternative energy measures to ensure that the supply and demand of energy will be met at all times to come.
Due to limited underlying growth in product demand, there has been an increase in recent years towards increasing the complexity of refineries rather than expanding capacity. In the U.S., no new refineries have been built since 1980, however, improvements in process design and technology have seen capacity increase around 1% per year.
The early refineries that were established were mainly used to process light sweet crude, resulting in an increase in demand for light sweet crude. As a result of higher oil prices in recent times, heavy crude oil is becoming more economically attractive. In addition, the interest in the development of new cost effective methods for extracting and transporting heavy crude oil for refining into valuable light and middle distillate fuels is also increasing.
[Updated 12/17/2021] Historically, BP’s (NYSE: BP) earnings have been primarily dependent on the oil & gas business resulting in fluctuating asset returns, fairly in line with benchmark oil prices. The Brent benchmark increased from $54 in 2017 to $71 in 2018, remained slightly lower at $63 in 2019, and subsequently declined to $41 in 2020. ...More
[Updated 2021/11/03] In the recent earnings release, BP (NYSE: BP) announced a $1.25 billion share repurchase program given the sizable improvement in cash flows from rising oil prices. The company remains committed toward expanding its renewable energy portfolio and divesting oil & gas assets as opposed to other oil majors. ...More
Rising oil prices have been a boon for the overall industry including BP (NYSE: BP), which is going through a transition phase and expanding the convenience and renewable energy businesses. In H1 2021, the company generated $11.5 billion of cash from operations, repaid $7 billion of long-term debt – bringing the net debt down to $33 billion. ...More
The shares of EQT Corporation (NYSE: EQT) have gained 9.4% in the past week, assisted by broader momentum in the oil & gas industry. Considering average daily sales volumes, the company is the largest producer of natural gas in the U.S. ...More
Oil prices have remained high due to ongoing inventory draws in the U.S., OECD countries, and other parts of the world. Notably, the crude oil and gasoline inventory levels in the U.S. and OECD countries declined by 2% and 1.4% (q-o-q), respectively, in Q2 2021. ...More
[Updated 05/28/2021] The shares of BP (NYSE: BP) have gained 25% this year assisted by rising benchmark prices and its strategic focus toward low carbon and convenience businesses. Notably, the share of capital allocation for Gas & low carbon energy segment increased from 31% in Q1 2020 to 50% in Q1 2021. ...More
The shares of EQT Corporation (NYSE: EQT) have gained 27% in the past quarter fairly in-line with the broader energy sector. EQT is the largest producer of natural gas in the U.S. with an average daily sales volume of 4,100 MMCFD – nearly 4% of the total U.S. production. ...More
In the past few months, BP (NYSE: BP) extended its long-term renewable energy goals by announcing strategic partnerships with multiple companies, including Equinor, Microsoft, and JinkoPower. ...More
BP (NYSE: BP) reported its results earlier today. The company reported a rebound in earnings from fuel sales and the absence of significant exploration write-offs. Underlying replacement cost profit (a proxy for net profit), totaled $100M vs. an expected third-quarter loss of $347M. That compares with a loss of $6.7B in Q2, and a $2.3B profit reported a year earlier. ...More
After halting exploration activity and curtailing capital expenditure in response to the Covid-19 pandemic, BP (NYSE: BP) released a new strategic direction with a focus on renewables and mobility along with the second-quarter results. The company incurred an $11.8 billion impairment charge and $9. ...More
BP (NYSE:BP) is an oil major headquartered out of London, which employs over 73,000 people globally. BP competes with a range of other oil majors, including Exxon Mobil, Chevron, and Royal Dutch Shell. Trefis captures trends in BP's Revenues over the years, along with our forecast for 2020 in an interactive dashboard, parts of which we highlight below. ...More
BP Plc. (NYSE:BP) British Petroleum is expected to report earnings on the 5th of February. The oil major has witnessed turbulent times during the quarter with the price of WTI oil falling from $75 a barrel early in the fourth quarter to $45 toward the end of the quarter. ...More
BP Plc. (NYSE:BP) posted a strong improvement in its September quarter performance backed by a notable improvement in its price realization and refining margins. The European integrated energy company is expected to post a notable improvement in its revenue as well as earnings due to the rebound in commodity prices. ...More
BP Plc. (NYSE:BP) is set to report its financial numbers for the September quarter on 30th October 2018. The European integrated energy company is expected to post a notable improvement in its revenue as well as earnings due to the rebound in commodity prices. ...More
The year 2018 has been a good one for BP Plc. (NYSE:BP). On the one hand, the European company's performance has improved drastically backed by the rebound in commodity prices in the last few quarters. ...More
Similar to its US competitors - Exxon Mobil and Chevron, BP Plc. (NYSE:BP), the European integrated energy company, posted a strong improvement in its June quarter performance. ...More
BP Plc. (NYSE:BP), the European integrated energy company, is set to post its financial numbers for the June quarter on 31st July 2018. The market expects the oil and gas major to experience a notable improvement in its annual revenue as well as earnings due to higher price realization and refining margins. ...More
Crude oil had a great start to the year 2018. The commodity touched $80 per barrel for the first time in almost four years on the back of Organization of Petroleum Exporting Countries' (OPEC) decision to extend the oil production quotas until end of 2018. ...More
So far, the year 2018 has been a good one for commodities, particularly crude oil. Thanks to the Organization of Petroleum Exporting Countries' (OPEC) agreement to restrict their oil output by 1. ...More
BP Plc. (NYSE:BP), the European integrated energy company, has seen steady growth in the recent past, led by better price realization for its upstream business. Oil prices have seen a strong move this year, amid lower inventory levels due to OPEC production cuts, and other geopolitical factors. 2017 was a good year for oil companies, as growth in benchmark crude prices aided their margins. ...More