- BP (BP +4.8%) seems to have received and understood investors' message to hold the line on capital spending; that, rather than Q3 profits that exceeded beaten-down expectations, is prompting today's jump in BP shares.
- BP also hikes its dividend and promises to sell $10B in assets by the end of 2015 to fund additional distributions to shareholders, including share buybacks.
- BP's next challenge will be to demonstrate its pledges are backed up by stronger operational cash flows, WSJ's Helen Thomas writes; a promising sign is the 3.4% gain in Q3 production adjusted for asset sales.
- BP has several projects ramping up this year and next while higher spending to retool operations after Macondo is approaching its end; also, the modernization of the Whiting refinery in Indiana could deliver $1B/year in additional cash flow upon reaching full production.
BP heeds message to stop spending and return cash, shares surge
Oct 29 2013, 12:26 ET