NYSE:BP

22.82
0.45 (1.91%)
BP P.L.C., formerly British Petroleum, is a British multinational oil and gas company headquartered in London.
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Analysis and Opinions about BP-N

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
April 21, 2020
(A Top Pick May 07/19, Down 45%) BP will be profitable this year because of its downstream operations. They're also cutting edge with their renewable energy division. The dividend will be safe for 12 months, but Brent oil will eventually need to rise for the dividend to survive longer.
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BP PLC (BP-N)
April 21, 2020
(A Top Pick May 07/19, Down 45%) BP will be profitable this year because of its downstream operations. They're also cutting edge with their renewable energy division. The dividend will be safe for 12 months, but Brent oil will eventually need to rise for the dividend to survive longer.
DON'T BUY
DON'T BUY
February 26, 2020

A super major energy company. Their growth and capital allocation don't make this compelling at all. EOG-N is much better and will snap back better after this oil sell-down.

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BP PLC (BP-N)
February 26, 2020

A super major energy company. Their growth and capital allocation don't make this compelling at all. EOG-N is much better and will snap back better after this oil sell-down.

PAST TOP PICK
PAST TOP PICK
October 8, 2019
(A Top Pick Dec 27/18, Up 3%) Oil prices continue to struggle, but BP pays a big, safe dividend. They generate great return on capital even at current oil prices. They also run fuel stations in Europe and sell natural gas products, not just oil. They're a leader in using data to make equipment use efficient.
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BP PLC (BP-N)
October 8, 2019
(A Top Pick Dec 27/18, Up 3%) Oil prices continue to struggle, but BP pays a big, safe dividend. They generate great return on capital even at current oil prices. They also run fuel stations in Europe and sell natural gas products, not just oil. They're a leader in using data to make equipment use efficient.
TOP PICK
TOP PICK
June 11, 2019
Their business is optimized at below-$50/barrel oil while energy prices are slowing creeping higher. Safe dividend over 5% and there's growth ahead. (Analysts’ price target is $50.32)
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BP PLC (BP-N)
June 11, 2019
Their business is optimized at below-$50/barrel oil while energy prices are slowing creeping higher. Safe dividend over 5% and there's growth ahead. (Analysts’ price target is $50.32)
TOP PICK
TOP PICK
May 7, 2019
Huge cash flow. They made a big acquisiton of BHP in 2018 and their timing was impeccable. Pays a 5.5% yield that'll grow. They're a big investor in renewables. A cheap stock at 11x earnings. (Analysts’ price target is $50.32)
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BP PLC (BP-N)
May 7, 2019
Huge cash flow. They made a big acquisiton of BHP in 2018 and their timing was impeccable. Pays a 5.5% yield that'll grow. They're a big investor in renewables. A cheap stock at 11x earnings. (Analysts’ price target is $50.32)
HOLD
HOLD
March 11, 2019
Looks fine and doesn't see downside risk. Hold and collect the yield or add now.
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BP PLC (BP-N)
March 11, 2019
Looks fine and doesn't see downside risk. Hold and collect the yield or add now.
PAST TOP PICK
PAST TOP PICK
February 26, 2019
(A Top Pick Dec 27/18, Up 14%) BP is how he plays oil. It's the gold standard in oil operations. They've focussed on cost and discipline, using technology to improve recoveries and cost overruns. Even with $50-60 oil, they'll double their cash flow within five years. Pays a safe 6% dividend.
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BP PLC (BP-N)
February 26, 2019
(A Top Pick Dec 27/18, Up 14%) BP is how he plays oil. It's the gold standard in oil operations. They've focussed on cost and discipline, using technology to improve recoveries and cost overruns. Even with $50-60 oil, they'll double their cash flow within five years. Pays a safe 6% dividend.
BUY
BUY
February 22, 2019
He owns this one and he likes their lack of exposure to WCS oil prices. It is good value here and he expects to see them continue to grow. He would prefer them to SU-T for this reason. Yield 5.8%
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BP PLC (BP-N)
February 22, 2019
He owns this one and he likes their lack of exposure to WCS oil prices. It is good value here and he expects to see them continue to grow. He would prefer them to SU-T for this reason. Yield 5.8%
BUY
BUY
January 8, 2019
We had oil oversupply which pushed down prices. At these levels BP has an attractive yield. Good reserves and balance sheet. He's happy with their current levels.
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BP PLC (BP-N)
January 8, 2019
We had oil oversupply which pushed down prices. At these levels BP has an attractive yield. Good reserves and balance sheet. He's happy with their current levels.
TOP PICK
TOP PICK
December 27, 2018
The oil price is nearing its bottom, he thinks. $45 is the marginal cost of U.S. shale production. BP uses new technology and data to reduce their costs and boost productivity. Even if the oil price stays within $45-65, he thinks BP will still bring on more production. They can increase their free cash flow. Pays a decent yield. (Analysts’ price target is $49.30)
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BP PLC (BP-N)
December 27, 2018
The oil price is nearing its bottom, he thinks. $45 is the marginal cost of U.S. shale production. BP uses new technology and data to reduce their costs and boost productivity. Even if the oil price stays within $45-65, he thinks BP will still bring on more production. They can increase their free cash flow. Pays a decent yield. (Analysts’ price target is $49.30)
BUY
BUY
July 31, 2018

BP recently made a big acquisition that the market liked. Its balance sheet is reasonable and its last earnings results were good. It recently increased its dividend. Oil is finding a level at $70 or higher, which is good for BP.

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BP PLC (BP-N)
July 31, 2018

BP recently made a big acquisition that the market liked. Its balance sheet is reasonable and its last earnings results were good. It recently increased its dividend. Oil is finding a level at $70 or higher, which is good for BP.

BUY
BUY
May 7, 2018

He still likes it. They got their cost structure down. It is a free cash flower with a 5% dividend. The dividend will remain if oil drops to $50. The balance sheet is in good shape.

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BP PLC (BP-N)
May 7, 2018

He still likes it. They got their cost structure down. It is a free cash flower with a 5% dividend. The dividend will remain if oil drops to $50. The balance sheet is in good shape.

PAST TOP PICK
PAST TOP PICK
April 9, 2018

(A Top Pick May 16, 2017, Up 20%) Lots of free cash flow which covers their dividend, unlike other companies that borrow money to. He expects dividend increases. They're actually investing big in renewables. Big oil is investing their profits in green because they see renewables as their future in 20 years as oil declines.

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BP PLC (BP-N)
April 9, 2018

(A Top Pick May 16, 2017, Up 20%) Lots of free cash flow which covers their dividend, unlike other companies that borrow money to. He expects dividend increases. They're actually investing big in renewables. Big oil is investing their profits in green because they see renewables as their future in 20 years as oil declines.

HOLD
HOLD
December 20, 2017

This was the big oil leak in the Gulf of Mexico. The US changed the rules and applied therapeutic sanctions and retroactively wrote legislation. The company had to sell off some assets and slowly started to rebuild. European oil is starting to recover quite nicely and generally had a decent year. The company has started to go back into exploration, and is now starting to be followed by the other majors. Assuming the conditions of OPEC supply constraint remain, the Saudi/Aramco goes public, then longer-term we will see a higher energy price, but it won't be immediate. A company like this will do okay. Thinks it has a more upside. Prefers Royal Dutch Shell.

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BP PLC (BP-N)
December 20, 2017

This was the big oil leak in the Gulf of Mexico. The US changed the rules and applied therapeutic sanctions and retroactively wrote legislation. The company had to sell off some assets and slowly started to rebuild. European oil is starting to recover quite nicely and generally had a decent year. The company has started to go back into exploration, and is now starting to be followed by the other majors. Assuming the conditions of OPEC supply constraint remain, the Saudi/Aramco goes public, then longer-term we will see a higher energy price, but it won't be immediate. A company like this will do okay. Thinks it has a more upside. Prefers Royal Dutch Shell.

DON'T BUY
DON'T BUY
November 6, 2017

It is an ADR so she does not typically trade it. It has been out of favour, however. She is hesitant to jump into any energy stocks.

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BP PLC (BP-N)
November 6, 2017

It is an ADR so she does not typically trade it. It has been out of favour, however. She is hesitant to jump into any energy stocks.

COMMENT
COMMENT
October 23, 2017

Compared with other integrateds?A company that makes money at $50 oil. Part of their business benefits from oil prices, petrochemicals and refining. They are earning their hefty 6% level dividend with their own free cash flow. These large integrateds are going to underperform if oil does really, really well. They are using their free cash flow to make intelligent acquisitions. Rising dividends are in the cards even if oil stays at $50.

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BP PLC (BP-N)
October 23, 2017

Compared with other integrateds?A company that makes money at $50 oil. Part of their business benefits from oil prices, petrochemicals and refining. They are earning their hefty 6% level dividend with their own free cash flow. These large integrateds are going to underperform if oil does really, really well. They are using their free cash flow to make intelligent acquisitions. Rising dividends are in the cards even if oil stays at $50.

TOP PICK
TOP PICK
May 16, 2017

The Macondo Gulf of Mexico disaster is now past and they have taken all the charges. They’ve rebuilt the company. The balance sheet is in very strong shape. With the cost structure where it is, even at these commodity prices, this company is throwing off lots of cash flow. Dividend yield of 6.7% is sustainable at current commodity prices. This is the cheapest of all the major integrateds. (Analysts’ price target is $37.50.)

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BP PLC (BP-N)
May 16, 2017

The Macondo Gulf of Mexico disaster is now past and they have taken all the charges. They’ve rebuilt the company. The balance sheet is in very strong shape. With the cost structure where it is, even at these commodity prices, this company is throwing off lots of cash flow. Dividend yield of 6.7% is sustainable at current commodity prices. This is the cheapest of all the major integrateds. (Analysts’ price target is $37.50.)

BUY
BUY
February 16, 2017

He thinks oil prices have bottomed and will start to move higher in fits and starts. They had issues in the past that are behind them now. They are a good company to own and are a cash cow.

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BP PLC (BP-N)
February 16, 2017

He thinks oil prices have bottomed and will start to move higher in fits and starts. They had issues in the past that are behind them now. They are a good company to own and are a cash cow.

BUY
BUY
January 27, 2017

At current oil prices, most European oil companies are going to cover the dividends. Most of the baggage for this company is now behind them. As we get into an environment where oil starts to stabilize politically, at around the current price and a little higher, then you will start to see yield compression. You are looking at some pretty decent upside from here. An interesting company and the balance sheet is reasonable. 6.5% dividend yield.

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BP PLC (BP-N)
January 27, 2017

At current oil prices, most European oil companies are going to cover the dividends. Most of the baggage for this company is now behind them. As we get into an environment where oil starts to stabilize politically, at around the current price and a little higher, then you will start to see yield compression. You are looking at some pretty decent upside from here. An interesting company and the balance sheet is reasonable. 6.5% dividend yield.

COMMENT
COMMENT
September 19, 2016

One thing is that safety issues are not new to this company. Within the majors that operate within the US, this has been the one with the worst safety record. You can’t attract and retain quality employees if they are concerned about health and safety. Also, they have basically run all of their foreign operations through the US, so they are very exposed in terms of liability. He also is not interested in investing in oil and gas.

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BP PLC (BP-N)
September 19, 2016

One thing is that safety issues are not new to this company. Within the majors that operate within the US, this has been the one with the worst safety record. You can’t attract and retain quality employees if they are concerned about health and safety. Also, they have basically run all of their foreign operations through the US, so they are very exposed in terms of liability. He also is not interested in investing in oil and gas.

BUY WEAKNESS
BUY WEAKNESS
June 22, 2016

Any time he sees a dividend over 5%, he starts to get a little concerned. Higher-quality names like this have really seen capital flow into them, given the meltdown we have seen on oil. Trading in the 30s in regard to PE, and at these levels there isn’t much patience for any bad news, and he would expect a pullback.

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BP PLC (BP-N)
June 22, 2016

Any time he sees a dividend over 5%, he starts to get a little concerned. Higher-quality names like this have really seen capital flow into them, given the meltdown we have seen on oil. Trading in the 30s in regard to PE, and at these levels there isn’t much patience for any bad news, and he would expect a pullback.

COMMENT
COMMENT
May 30, 2016

Very much like all the other super majors. A very disciplined, very large project company with global assets. They are all categorized as safer businesses, more steady stream, not a lot of growth, and in really bad oil markets funds tend to allocate their money into them as safer places. His view is that the oil cycle is turning. This one is cheap trading at 4.5 X this year’s EBITDA. There is virtually no growth in the business. Prefers Suncor (SU-T), which has non-declining assets. (See Top Picks.)

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BP PLC (BP-N)
May 30, 2016

Very much like all the other super majors. A very disciplined, very large project company with global assets. They are all categorized as safer businesses, more steady stream, not a lot of growth, and in really bad oil markets funds tend to allocate their money into them as safer places. His view is that the oil cycle is turning. This one is cheap trading at 4.5 X this year’s EBITDA. There is virtually no growth in the business. Prefers Suncor (SU-T), which has non-declining assets. (See Top Picks.)

COMMENT
COMMENT
August 24, 2015

(Bought when Cdn$ was at par. Sell and convert back to Cdn$?) You probably made 30% on the currency, but you lost 30% on the stock. Sector is cheap now, so wouldn’t recommend selling, but would recommend buying. He would look to sell some of those and lock in the FX gain, but roll that exposure into a Canadian ETF like an XEG-T so that when oil recovers, you don’t have the currency risk.

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BP PLC (BP-N)
August 24, 2015

(Bought when Cdn$ was at par. Sell and convert back to Cdn$?) You probably made 30% on the currency, but you lost 30% on the stock. Sector is cheap now, so wouldn’t recommend selling, but would recommend buying. He would look to sell some of those and lock in the FX gain, but roll that exposure into a Canadian ETF like an XEG-T so that when oil recovers, you don’t have the currency risk.

COMMENT
COMMENT
July 7, 2015

Would not have particularly favourable momentum characteristics for him. It is great that the lawsuits are behind them, but in general the price momentum on some of the stocks is not favourable.

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BP PLC (BP-N)
July 7, 2015

Would not have particularly favourable momentum characteristics for him. It is great that the lawsuits are behind them, but in general the price momentum on some of the stocks is not favourable.

PAST TOP PICK
PAST TOP PICK
May 4, 2015

(Top Pick Apr 24/14, Down 7.09%) We may see a roll over again, but otherwise he would say it is a buy. Chip away at it.

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BP PLC (BP-N)
May 4, 2015

(Top Pick Apr 24/14, Down 7.09%) We may see a roll over again, but otherwise he would say it is a buy. Chip away at it.

PAST TOP PICK
PAST TOP PICK
February 12, 2015

(Top Pick Jan 6/14, Down 8.78%) It is such a cheap stock with a single digit multiple and a 5% yield, but that could get cut. It throws off a ton of free cash flow. They may become a net acquirer of cheap energy assets.

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BP PLC (BP-N)
February 12, 2015

(Top Pick Jan 6/14, Down 8.78%) It is such a cheap stock with a single digit multiple and a 5% yield, but that could get cut. It throws off a ton of free cash flow. They may become a net acquirer of cheap energy assets.

COMMENT
COMMENT
February 3, 2015

British Petroleum (BP-N) or Royal Dutch Shell (RDS.B-N)? If you are looking for as much safety as you can in the commodity sector, Royal Dutch Shell has the best balance sheet of the 2. If you want a little more volatility, this would be the one. He likes both companies.

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BP PLC (BP-N)
February 3, 2015

British Petroleum (BP-N) or Royal Dutch Shell (RDS.B-N)? If you are looking for as much safety as you can in the commodity sector, Royal Dutch Shell has the best balance sheet of the 2. If you want a little more volatility, this would be the one. He likes both companies.

PAST TOP PICK
PAST TOP PICK
December 22, 2014

(A Top Pick Dec 5/13. Down 11.96%.) Feels the majors generally are on sale. They have performed better, relative to the smaller/mid-cap stories. It gives you a relatively defensible dividend and you will get some upside. Up 13.5% from its 52 week low.

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BP PLC (BP-N)
December 22, 2014

(A Top Pick Dec 5/13. Down 11.96%.) Feels the majors generally are on sale. They have performed better, relative to the smaller/mid-cap stories. It gives you a relatively defensible dividend and you will get some upside. Up 13.5% from its 52 week low.

PAST TOP PICK
PAST TOP PICK
November 20, 2014

(Top Pick Dec 05/13, Down 5.72%) He is still buying it for clients. The Russian event affected this stock. This company is on sale and longer term oil prices are going higher.

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BP PLC (BP-N)
November 20, 2014

(Top Pick Dec 05/13, Down 5.72%) He is still buying it for clients. The Russian event affected this stock. This company is on sale and longer term oil prices are going higher.

COMMENT
COMMENT
October 14, 2014

This has been a challenging story over the last few years. Strategically the Macondo disaster in the US basically forced them to strategically make some moves that a normal operating company wouldn’t want to be doing. Sold off some very prospective energy assets in the Gulf of Mexico and got into some huge litigation problems. This would not be his favourite name.

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BP PLC (BP-N)
October 14, 2014

This has been a challenging story over the last few years. Strategically the Macondo disaster in the US basically forced them to strategically make some moves that a normal operating company wouldn’t want to be doing. Sold off some very prospective energy assets in the Gulf of Mexico and got into some huge litigation problems. This would not be his favourite name.

TOP PICK
TOP PICK
August 28, 2014

It was on sale because of the Gulf fiasco. They started to recover from that, then they sold a major asset and now there is the Ukraine situation. He thinks it will go higher. Has an attractive dividend. It has a substantial exposure to Russia.

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BP PLC (BP-N)
August 28, 2014

It was on sale because of the Gulf fiasco. They started to recover from that, then they sold a major asset and now there is the Ukraine situation. He thinks it will go higher. Has an attractive dividend. It has a substantial exposure to Russia.

COMMENT
COMMENT
August 18, 2014

Probably the cheapest of the major integrated oil/gas companies. The negative is that a good chunk of their oil production is in Russia, so it deserves to trade at some discount. They are almost finished paying off the issues with their well disaster. Heading into a period where free cash flow will be increasing. Significant dividend increases are in the cards, along with significant share buybacks. Feels it is worth about a 3rd higher than what it is trading at, so to him it is value. Dividend of almost 5%.

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BP PLC (BP-N)
August 18, 2014

Probably the cheapest of the major integrated oil/gas companies. The negative is that a good chunk of their oil production is in Russia, so it deserves to trade at some discount. They are almost finished paying off the issues with their well disaster. Heading into a period where free cash flow will be increasing. Significant dividend increases are in the cards, along with significant share buybacks. Feels it is worth about a 3rd higher than what it is trading at, so to him it is value. Dividend of almost 5%.

SELL
SELL
June 11, 2014

If Exxon Mobile (XOM-N) is the best run of the global super majors, this one, demonstrably, is the worst run. Cheap stock at about 10X earnings with a yield of about 4.8%. This is a business that needs to shrink dramatically for it to have any chance of growing.

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BP PLC (BP-N)
June 11, 2014

If Exxon Mobile (XOM-N) is the best run of the global super majors, this one, demonstrably, is the worst run. Cheap stock at about 10X earnings with a yield of about 4.8%. This is a business that needs to shrink dramatically for it to have any chance of growing.

TOP PICK
TOP PICK
April 24, 2014

(Top Pick Apr 24/13, Up 23.28%) The liabilities are effectively dealt with. They are growing the company. Longer term this will be a growth story.

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BP PLC (BP-N)
April 24, 2014

(Top Pick Apr 24/13, Up 23.28%) The liabilities are effectively dealt with. They are growing the company. Longer term this will be a growth story.

COMMENT
COMMENT
April 23, 2014

This is probably the cheapest of the major oil/gas companies still suffering under the shadow of the Macondo spill. About a quarter of their production is in Russia, which is always a risk. The healthy dividend is rock solid. Focused solely now on driving shareholder value so there will probably be share buybacks and dividend increases. Trading at a very cheap valuation.

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BP PLC (BP-N)
April 23, 2014

This is probably the cheapest of the major oil/gas companies still suffering under the shadow of the Macondo spill. About a quarter of their production is in Russia, which is always a risk. The healthy dividend is rock solid. Focused solely now on driving shareholder value so there will probably be share buybacks and dividend increases. Trading at a very cheap valuation.

SELL
SELL
April 16, 2014

He would redeploy the capital into something else. The big internationals are all over the place and it is hard to analyze them. He would go with something closer to home where you get a better yield. We have great energy companies in Canada and he would buy the local ones.

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BP PLC (BP-N)
April 16, 2014

He would redeploy the capital into something else. The big internationals are all over the place and it is hard to analyze them. He would go with something closer to home where you get a better yield. We have great energy companies in Canada and he would buy the local ones.

HOLD
HOLD
February 13, 2014

They’ve turned the corner. Going forward he would call this a Hold as he would on Exxon, Chevron, etc. too. The big super majors are predominantly becoming gas companies. This company is struggling to be relevant again and really have to sell down a lot of their assets in order to meet their litigation issues.

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BP PLC (BP-N)
February 13, 2014

They’ve turned the corner. Going forward he would call this a Hold as he would on Exxon, Chevron, etc. too. The big super majors are predominantly becoming gas companies. This company is struggling to be relevant again and really have to sell down a lot of their assets in order to meet their litigation issues.

PAST TOP PICK
PAST TOP PICK
January 30, 2014

(A Top Pick Jan 23/13. Up 12.59%.) Ultimately, the catalyst here is the settlement of the liabilities. The longer the government drags its feet, the more that management has the ability to just move forward and start the company towards a growth path. The liability is well provisioned. Still a Buy.

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BP PLC (BP-N)
January 30, 2014

(A Top Pick Jan 23/13. Up 12.59%.) Ultimately, the catalyst here is the settlement of the liabilities. The longer the government drags its feet, the more that management has the ability to just move forward and start the company towards a growth path. The liability is well provisioned. Still a Buy.

COMMENT
COMMENT
January 10, 2014

Valuation across the big cap space is quite low in general. Has been some concern as to where the price of oil will come because of the new sources of supply coming on. Also, we are getting more efficient in fuel usage. Thinks the group in general is reflecting some of this, but overall this is a pretty good bet.

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BP PLC (BP-N)
January 10, 2014

Valuation across the big cap space is quite low in general. Has been some concern as to where the price of oil will come because of the new sources of supply coming on. Also, we are getting more efficient in fuel usage. Thinks the group in general is reflecting some of this, but overall this is a pretty good bet.

DON'T BUY
DON'T BUY
January 9, 2014

Have some infrastructure problems with pipelines and offshore wells that he is not convinced have been fully addressed. Good reserves and good operator, but thinks there are better opportunities elsewhere. (See Top Picks.)

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BP PLC (BP-N)
January 9, 2014