BP Stock: Still A Compelling Investment Proposition

Jun. 12, 2025 4:05 PM ETBP p.l.c. (BP) StockBP3 Comments
Andrew Mackie
9 Followers

Summary

  • BP is deeply undervalued versus US peers, with a wide valuation gap that I expect to close over this decade.
  • The company's strategic reset, refocusing on oil and gas, positions it for significant cash flow growth.
  • Cost reduction initiatives and portfolio rationalization should strengthen BP's balance sheet, despite recent challenges and activist pressure.
  • Long-term energy demand, macro tailwinds, and BP's core strengths make it a clear buy for patient investors seeking hard asset exposure.

BP refinery behind container terminal, Rotterdam, Netherlands

ClaudineVM/iStock Editorial via Getty Images

Investing in oil and gas stocks is the ultimate macro play. Quite simply, an investor has to believe that the price of energy is heading higher in the future. Of course, there are once-in-a-generation moments like we saw

This article was written by

9 Followers
I began my investing journey just before the Covid crash in 2020. Although an extraordinarily brief bear market, it did teach me not to lose one's head when all around you are losing theirs. I have worked nearly 15 years as a strategy consultant with expertise in communications, cultural change and stakeholder management across various industries including: utilities, transport, construction, healthcare and public sector, I have demonstrated key competences in building intellectual leadership across these sectors enabling clients to envision the future direction of their industry and shaping a path toward enabling them to reach their strategic goals. I have a passion for assisting organisations in looking beyond the myopia of the markets they serve as well as breaking away from conventional thinking around industry structure and business model design. My primary investing research and interest lies within the UK markets with expertise across a number of FTSE 350 and small-cap companies. Although possessing excellent knowledge of the AI and wider tech industry, I remain deeply worried about the path the mega-cap US stocks find themselves on today and remain deeply sceptical of the stated future benefits of large language models.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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