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BP
BP p.l.c. - NYSE

7/9/2014, 10:05 PM ET
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  • BP: A Possible Tax Inversion Takeover Target
    Sammy Pollack Mon, Jun. 23 45 Comments

    Summary

    • Tax inversions are all the rage right now, and no major energy deals have happened yet.
    • BP is one of the few possible targets for large U.S. oil companies.
    • BP's low valuation also makes it an interesting takeover target.
  • Will BP's Asset Sales Pay Dividends For Shareholders?
    Cowboy Investing Wed, Jun. 11 8 Comments

    Summary

    • BP announced $1.5 billion in asset sales as part of its efforts to generate $10 billion from selling non-core assets.
    • BP has a 4.6% dividend yield and recently increased its dividend.
    • BP is trading at a lower P/B and P/E relative to its two largest peers.
  • BP: What You Need To Know As A Dividend Investor
    Stock Gamer Wed, Jun. 4 16 Comments

    Summary

    • Free cash flow may grow by more than 25% per annum from 2014 to 2016.
    • Current dividend growth is sustainable as free cash flow dividend payout ratio will continue to drop over time.
    • Current valuation reasonably reflects the dividend growth potential.
    • Downside is supported by dividend yield and future dividend growth, and a price floor is at around $45.
  • Is BP A Good Stock To Buy?
    Winning Strategies Mon, Jun. 2 4 Comments

    Summary

    • The integrated oil & gas industry has a stable outlook.
    • BP has set strong footprints for future growth with recent investments and disposal of non-core assets.
    • BP is a good dividend stock to buy, and Exxon looks like a better investment over Chevron.
  • BP's Dividend And Buyback Are At Real Risk
    Quoth the Raven Tue, May. 20 67 Comments

    Summary

    • Longs continue to contend that the BP spill settlement will simply "go away" one of these days and BP will return to greatness a la the way Exxon has.
    • SA contributor "The Specialist" has lent superlative knowledge of the potential effects of the BP spill settlement, which lends credence to his/her prediction of $90 billion+ in settlements.
    • With that type of monetary penalty and BP's current asset base of $80B, BP's dividends and buyback would surely be at risk, as well as free cash flow.
  • Can BP Finally Go Above Pre-Crisis Levels?
    Dave Allen Tue, May. 20

    Summary

    • BP stock is back to $50 for the first time in over 3 years.
    • Significant risk in play with exposure to Russia, drops in production and lower earnings forecasts.
    • Positive price trend projection of 7% return for the next month with a supportive risk profile.
  • BP PLC: A New View From The Bond Market
    Donald van Deventer Tue, May. 13 2 Comments

    Summary

    • BP PLC default probabilities have held steady since our November 5 analysis, ranking near the median of the energy peer group at 5 and 10 years.
    • BP PLC bond issues have been bid up since our November report. At that time, they offered above average value, but things are different now.
    • Of 281 bonds which traded at least $5 million on May 9, 165 bonds offered a better spread to default probability ratio than the best BP Capital Markets PLC bond.
  • Why BP Is Headed To $60
    Wall Street Playbook Wed, Apr. 30 12 Comments

    Summary

    • Management continues to make meaningful progress to move the company forward.
    • Russia's situation will have very little impact on BP's long-term plans of returning value to shareholders.
    • The shares are trading at a P/E of 6, which is half of Exxon and 4 points lower than ConocoPhillips.
  • Can BP Double Over The Next 5 Years?
    Achilles Research Wed, Apr. 30 8 Comments

    Summary

    • BP remains top value in the large-cap oil and gas sector.
    • BP has the potential to double over five years driven by operating cash flow growth, multiple expansion, asset divestitures and share repurchases.
    • BP is also a solid income vehicle for investors who desire recurring income from a leading energy company.
  • BP: Dividend Outlook Is Better Than What Is Being Reflected
    Stock Gamer Tue, Apr. 15 24 Comments

    Summary

    • As reorganization is approaching an end, BP will soon see improved cash flow generation.
    • BP's discounted valuation is exaggerated given its cash flow profile, sustainable dividend yield, and well-contained exposure to Macondo litigation.
    • BP is able to grow dividend by 5% per annum through 2018, while current valuation only implies 3-4%.
  • BP: Solid High-Yield Play Gets Upgraded
    Bret Jensen Mon, Apr. 14 34 Comments

    Summary

    • Energy giant BP Plc. got a nice upgrade at Canaccord today which went to a "Buy" on the shares.
    • The stock pays an almost 5% yield and is a core position in my income portfolio.
    • The shares have reasonable valuations and potential positive catalysts to boost the stock in the year ahead.
  • BP: You Could Realistically Double Your Money In Five Years
    Tim McAleenan Jr. Wed, Mar. 26 34 Comments

    Summary

    • BP's current valuation is well below its historical normal of 11-13x earnings.
    • Even if the company endures a worst-case scenario with a legal judgment from the oil spill, BP has the cash and asset backing to still deliver satisfactory returns.
    • If you run a reasonably optimistic calculation on this company, the shares could realistically double within five years.
  • BP - The Horizons Have Widened Again
    Alpha Strategist Tue, Mar. 25 22 Comments

    Summary

    • A number of divestments and investments have narrowed down the focus of the company.
    • The ban that was previously imposed by the US after the GoM oil spill has been lifted, giving the company exposure to the US markets yet again.
    • Rising reserves replacement ratio is indicative of the fact that the company is poised for long-term growth.
    • The contract with Kinder Morgan gives BP 80% ownership rights to KM's Houston-based facility and enables BP to sell within and outside the US.
  • The Bull Case For BP Continues
    Balanced Investing Thu, Mar. 20 6 Comments

    Summary

    • BP has 4 major upstream projects that are expected to contribute to production during the current year.
    • The company plans to spend around 25 billion on new start-ups and turnaround ventures during 2015-2018.
    • BP has been the largest investor in the Gulf of Mexico. The start-up of the Na Kika Phase 3 project highlights significant growth opportunities around its four major operated hubs.
    • BP plans to give a boost to production by investing in the non-operated production hubs, such as Mars, Ursa and Great White in the Gulf of Mexico.
    • The separation of the U.S. Lower 48 onshore business will not only improve the operating efficiency of the region, but will also allow it to exploit the region's resource base.
  • BP: The Future Looks Promising
    Gemstone Equity Research Thu, Mar. 20 6 Comments

    Summary

    • Rosneft transaction is completed and gives BP the advantage of exploiting the large oil reserves in Russia better than any of its peers.
    • Huge capital expenditure of $25 billion planned for 2014 with focus on upstream (80% allocation).
    • Two new projects in North Sea to add 250 MBOED of production. Whiting (refining) facility to be modernized and will now make high margin products due to heavy crude capability.
  • BP: Slowly Getting Back In The Game
    Bret Jensen Mon, Mar. 17 18 Comments

    Summary

    • BP continues to work through the impacts of the huge Gulf oil spill of 2010.
    • The company took another big step in that process last week.
    • Based on dividend yield and valuation, it trades at a discount to Exxon Mobil and Chevron. A discount that should narrow over time.
  • Hey BP, Shake Off Your Legal Risks, And Then We'll Talk
    Quoth the Raven Sun, Mar. 16 41 Comments

    Summary

    • BP's fundamentals make it look like a "no brainer" buy.
    • It trades well compared to other names in the sector and sports a great dividend.
    • However, massive risk resides under the surface with BP's ongoing legal battle.
  • Kinder Morgan Discovers A Clever Way Around The Crude Oil Export Ban
    Albert Alfonso Mon, Mar. 10 25 Comments

    Summary

    • Kinder Morgan and BP have an agreement in place to export crude oil via a 100,000 BBL per day “mini-refinery”.
    • The oil will be processed just enough to allow BP to export it as a lightly refined product, skirting existing bans on crude oil exports.
    • Such a refinery only has about 10% of the costs compared to a traditional refinery.
    • Other companies such as Valero, Magellan Midstream Partners, and Phillips 66 are looking to follow with similar projects.
  • BP: Growth Projects Will Bolster The Company's Top And Bottom Line

    Summary

    • BP has maintained investments in the oil and gas industry in Russia for more than a decade.
    • BP is shifting towards a more focused portfolio as it completed the divestiture of assets worth $38 billion and also has plans in store to divest assets worth $10 billion.
    • Investors who are holding the stock for the long-term should continue to hold on to it until the political arena is cleared.
  • Conflict In Ukraine Could Spell Trouble For BP
    Kevin Babb Wed, Mar. 5 14 Comments

    Summary

    • BP investment in russian oil company Rosneft could trouble BP.
    • A recent drop in Rosneft's price caused a nearly $1b loss for BP.
    • Despite the headwinds, BP may still have an attractive valuation.
BP vs. ETF Alternatives
Company Description

BP PLC provides energy products and services. The company explores for oil and natural gas and also engages in supply and trading of crude oil, petroleum, petrochemicals products and related services.