2024-05-08 08:38:57 ET
Summary
- BP stock has been held back by its planned drop off in production in the back half of the decade.
- New management are open to bringing on new projects that would stem this decline, even as they state they are committed to a green transition.
- Final approval of new oil and gas projects would reduce uncertainty and allow the market to revalue the stock upward.
Tough Quarter But On Track For The Year
BP p.l.c. ( BP ) recently reported Q1 2024 results , the first quarter since Murray Auchincloss was formally appointed CEO . The results were below analyst expectations , with operational and market drivers. The operational reason was mainly a 6-week shutdown of the 440,000 bpd Whiting Refinery in northwest Indiana. This impacted EBITDA by about $0.5 billion, or about 4.6% of the company total. The upstream did much better operationally, with production of 2378 mboe/d, 2.1% above Q1 2023. Upstream had decent reliability at 94.9% and low per barrel production costs at $6.00. BP also started production at a new platform in the Caspian Sea offshore Azerbaijan and a new central processing facility in the Permian. Pricing was a headwind, with realized liquids prices of $71.24/bbl and gas prices of $4.62/mcf, compared to $72.58 and $7.20 a year ago....
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BP Stock Can Run Once They Admit They Are An Oil Company