BP's multibillion-dollar asset selloff enters new phase

BP collected ~$38B last year in its divestiture plan - mostly to help pay for oil spill costs - and has signaled it wants to keep lightening its load, but analysts say BP can afford to take more time, be more deliberate and negotiate for more lucrative deals.

BP also may prefer to strike deals that are smaller than the $5B-and-up sales it pursued in the past two years, and it may sell smaller interests in projects it wants to retain rather than sell off entire prospects, Edward Jones analyst Brian Youngberg says.

The oil giants have struggled to grow, Youngberg says, noting that Chevron (CVX) produced less oil in 2013 than it did in 2003; the oil spill may have been a blessing in a sense, since otherwise BP’s portfolio may have remained stagnant for years - “Sometimes it takes an emergency for someone to take action."

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Comments (3)
    , contributor
    Comments (5166) | Send Message
    CVX should definitely look into splitting up to unleash more value which is certainly there.


    The management team is there to accomplish this and they should use it.


    Long CVX
    12 Feb 2014, 04:37 PM Reply Like
  • neilc38@msn.com
    , contributor
    Comments (71) | Send Message
    BP is the best of the major companies for deep water drilling. As such, I don't believe that their revenues would dry up as those of CVX.
    12 Feb 2014, 06:50 PM Reply Like
  • kelezel
    , contributor
    Comments (3) | Send Message
    Retired Korea and Viet Nam vet with second retirement from major petro company. Long in petro chem, tobacco, utilities, pharm, and banks. Western Kentucky and University of Florida alum. Counting on BP to dig itself out of the gulf spill disaster.
    14 Feb 2014, 01:37 AM Reply Like
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