BP - Why Shares of BP Midstream Partners Rallied Nearly 14% at the Open Today
Shares of BP Midstream Partners (NYSE: BPMP) rose sharply in early trading on Monday, gaining just shy of 14% at one point in the first hour of the day. The news driving this wasn't really a surprise; it was more of a confirmation of what was already known. Here's the background.
BP Midstream Partners was spun off from integrated energy giant BP (NYSE: BP) in late 2017. The initial public offering (IPO) price was $18 per share. The basic goal of the IPO was for BP to raise cash that it could use to shore up its balance sheet and invest in its business. In addition, this move would allow the oil giant to sell (or "drop down" in industry lingo) additional assets to BP Midstream Partners so it could raise even more cash in the future. A number of big energy companies made similar moves.
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Why Shares of BP Midstream Partners Rallied Nearly 14% at the Open Today