BP and Shell Seek US Licenses for Natural Gas Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy BP?
Source: seekingalpha
BP PLC's stock rose by 3.01% as it reached a 52-week high amid positive developments in its natural gas projects.
BP is actively pursuing U.S. licenses for the Cocuina-Manakin field, which is linked to the Plataforma Deltana offshore gas project, potentially enhancing its position in the Latin American energy market. Additionally, Kepler Cheuvreux has replaced TotalEnergies with BP among its preferred European stocks, citing BP's resilience in the LNG market, which is expected to support its cash flow amid potential oversupply concerns.
This strategic move to secure licenses and the favorable analyst outlook could bolster BP's growth prospects in the competitive energy sector, particularly as it aims to expand its operations in Latin America.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BP is 84.26 USD with a low forecast of 6.38 USD and a high forecast of 503.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 38.170
Low
6.38
Averages
84.26
High
503.69
Current: 38.170
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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- Negotiation Breakdown: Negotiations that began on January 5 failed to reach a new agreement by the January 31 deadline, as BP rejected nearly all proposals, leaving workers anxious about job security and future terms.
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- Middle East Strategy: The Middle East is one of BP's top-producing regions; in addition to Kirkuk, BP operates Iraq's largest oil field, Rumaila, in the south, further solidifying BP's market position in the region.
- Production Increase Plan: BP's plan to nearly double Kirkuk's production aligns with Iraq's ambition to raise its overall oil and gas output capacity to over 6 million barrels per day by 2029, highlighting BP's proactive role in the global energy market.
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- Rising Debt Levels: As of the end of last year, Shell's net debt stood at $45.7 billion with a gearing ratio of 20.7%, an increase from $41.2 billion and 18.8% in Q3, indicating financial pressure amidst declining earnings.
See More
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- Share Buyback Program: The company has announced over $3 billion in share buybacks for 16 consecutive quarters, establishing itself as a best-in-class performer in capital discipline, despite the challenges posed by declining crude prices.
- Cost Control Targets: Shell raised its cost reduction target from $2-3 billion to $5-7 billion by 2028 and lowered its capital expenditure target from $22-25 billion to $20-22 billion, indicating a strong focus on maintaining financial health in a volatile market.
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See More
