BP Freezes Stock Buybacks to Prioritize Debt Reduction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy BP?
Source: Benzinga
- Financial Performance Overview: BP reported adjusted earnings of 60 cents per share, slightly exceeding the consensus estimate of 59 cents, yet total revenue of $47.38 billion fell short of analyst projections of $49.36 billion, indicating challenges in revenue growth.
- Debt Management Strategy: The company has decided to suspend stock buybacks to allocate excess cash towards debt reduction, aiming to lower net debt to between $14 billion and $18 billion by the end of 2027, reflecting a strong emphasis on financial stability.
- Segment Performance: The Oil Production & Operations segment recorded a replacement cost profit of $1.7 billion, with underlying profit adjusted down to $2.0 billion due to impacts from production mix and lower income share, highlighting pressures in the market environment.
- Future Outlook: BP anticipates capital expenditures in the range of $13 billion to $13.5 billion for 2026, with upstream production expected to slightly decline, demonstrating a cautious approach in response to industry challenges while also projecting approximately $1.6 billion in Gulf of America settlement payments.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 37.190
Low
6.38
Averages
84.26
High
503.69
Current: 37.190
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. The Company's segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. Its gas business includes regions with upstream activities that produce natural gas, integrated gas and power, and gas trading. Its low carbon business includes solar, offshore and onshore wind, hydrogen and carbon capture and storage and power trading. Oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. Customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle charging, as well as Castrol, aviation and business to business and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. Other businesses & corporate segment comprises technology and bp ventures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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