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BP agreed to an uncapped settlement with thousands of plaintiffs in the Deepwater Horizon oil...

BP agreed to an uncapped settlement with thousands of plaintiffs in the Deepwater Horizon oil spill trial, estimating its costs will come to $7.8B - this as the delayed trial was set to begin on Monday. Claims against codefendants RIG, HAL and CAM are unaffected by the settlement.
Comments (11)
  • Simon Moore, CFA
    , contributor
    Comments (89) | Send Message
     
    I view this as a positive for the stock, if BP can meet the class action costs from their $20B fund, then that's upside from the analysis I did on their legal costs month.http://seekingalpha.co...
    3 Mar 2012, 12:34 PM Reply Like
  • 2PP
    , contributor
    Comments (349) | Send Message
     
    I've had BP on my watch list for about a year, watching and waiting for all the chips to fall. This is a huge step forward and should be big green light to buy the stock if the settlement is approved. HAL is right there too, big upside to both.
    3 Mar 2012, 01:24 PM Reply Like
  • fmhaynes11
    , contributor
    Comments (431) | Send Message
     
    Wasn't this expected after the court delayed the trial ? Shouldn't this be already priced in, at least in short-term ? Guess we'll see on Monday.
    3 Mar 2012, 01:39 PM Reply Like
  • NITBound
    , contributor
    Comments (66) | Send Message
     
    I don't think it was priced in at this settlement cost. The rumors were at $14 billion, so this appears to be significantly better. Only problem is the uncertainty of this being uncapped and not just a straight payment to resolve all claims. So as you say, I guess we'll see Monday.
    3 Mar 2012, 02:01 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8310) | Send Message
     
    Finally...the endgame.

     

    BP wins!
    3 Mar 2012, 01:50 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    "BP wins! "

     

    How much goes to the lawyers?
    3 Mar 2012, 02:27 PM Reply Like
  • Simon Moore, CFA
    , contributor
    Comments (89) | Send Message
     
    I don't think it's quite the endgame yet, still court cases with the government to be sorted out that aren't trivial.
    3 Mar 2012, 04:09 PM Reply Like
  • Dr. V
    , contributor
    Comments (1179) | Send Message
     
    "BP has accepted responsibility for the disaster, and estimated its legal costs could total $43 Bil USD."

     

    This was reported on 27 February, before a settlement had been reached, and the settlement was "guesstimated" to be at or near, (+/-) $14 Bil USD.
    4 Mar 2012, 03:27 AM Reply Like
  • Bruce Whitaker
    , contributor
    Comments (406) | Send Message
     
    My guess is that the US government will not do any more to make BP the poster child for irresponsible drilling practices than it has already. It is likely that fines will be within the range expected by BP and that once that process reaches a level of clarity, BP stock will appreciate relative to its peers. The big question is how worldwide economic conditions will affect demand for oil over the next couple years.
    3 Mar 2012, 04:25 PM Reply Like
  • HackFab
    , contributor
    Comments (986) | Send Message
     
    I agree with your first sentence. And I would have really loved to hear some of the 'off the record' comments from the UK guvment about how The O treated one of their largest corps. The State issues will get settled because they will want their money now, and the Fed issues will get settled because they want some political fodder going into the November elections.

     

    Long BP.
    4 Mar 2012, 12:00 AM Reply Like
  • LKofEnglish
    , contributor
    Comments (4386) | Send Message
     
    this is a sign of..."confidence"...i guess that "oil prices will stay through the roof for some time." still doesn't do much for the overall economy of course. with the Gulf taken out of production because of the spill "the Day of Reckoning" has arrived.
    4 Mar 2012, 02:03 PM Reply Like
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