fareastwarriors Posted July 10, 2015 Share Posted July 10, 2015 BP: Into uncharted waters After oil group settles last big penalty for Deepwater Horizon, is it more nimble — or vulnerable? http://www.ft.com/intl/cms/s/0/0a71ce8c-24b9-11e5-9c4e-a775d2b173ca.html#axzz3fVHXbPDF ATTACHEDBP.pdf Link to comment Share on other sites More sharing options...
fareastwarriors Posted July 22, 2015 Share Posted July 22, 2015 BP Faces Rocky Landscape After Deepwater Horizon Settlement India project with Reliance showcases global challenges for oil giant http://www.wsj.com/articles/bp-faces-rocky-landscape-after-deepwater-horizon-settlement-1437532230 Link to comment Share on other sites More sharing options...
orthopa Posted July 25, 2015 Share Posted July 25, 2015 Earnings are this tuesday and I would assume that down stream holdings carry the company this quarter. As I mentioned above I know many may not be big Div investors on this site but at a 6.4% yield or so this looks compelling to me. I added more on Friday. The market seems to feel like the stock is going to cut the div after an "option trader" said it might this quarter. The Iran deal is definitely having an effect on this one too with more oil potentially flooding the market. With 32B in cash on the balance sheet, 4.3B at the end of last Q in the DeepWater Horizon trust and tax deductible penalty payments quantified going forward the div looks safe to me and the balance sheet able to whether any prolonged oil down turn. XOM looks compelling too at these levels FWIW. Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 12, 2016 Share Posted January 12, 2016 BP to Cut About 4,000 Exploration and Production Jobs Cuts are in response to low oil prices and restructuring after Gulf of Mexico disaster http://www.wsj.com/articles/bp-to-cut-about-4-000-exploration-and-production-jobs-1452605175 Link to comment Share on other sites More sharing options...
PLynchJr Posted January 21, 2016 Share Posted January 21, 2016 Those of you who hold BP are you getting nervous about the dividend being cut yet? Link to comment Share on other sites More sharing options...
orthopa Posted January 21, 2016 Share Posted January 21, 2016 Those of you who hold BP are you getting nervous about the dividend being cut yet? No I am not. Leverage ratio is reasonable and tons of cash on the balance sheet. Need to see how much cash then burn through this Q and project that out to see how long div is sustainable. The good thing about these majors and their cap ex cuts is a 10% cap ex cut covers 33% of the div etc. I will have to see this latest Q but they may have taken enough capex out each Q to cover the div. Asset sales have helped too and thankfully managment was a little ahead of the curve with some of these done last year. This will help with cash burn. I cant predict the future unfortunately but a 2-3 year period of $30 or less oil may necessitate a div cut. If history is any guide management will re up the div soon after vis a vis the horizon disaster and if you look back to the financial crisis management actually raised the div when oil was at lows. FWIW I think the market is pricing in a div cut at these prices and a 50% div cut still gets you a 4.5%ish yield and buying a piece of an oil major with oil at lows. BP is a little more insulated then say a COP due to down stream operations. Link to comment Share on other sites More sharing options...
PLynchJr Posted February 2, 2016 Share Posted February 2, 2016 The market is certainly not liking the lastest earnings report. Down 9% in early trading today. Dividend yield pushing 7.5% (for now). Oil’s Race to the Bottom: Can BP Keep Up? http://www.wsj.com/articles/oils-race-to-the-bottom-can-bp-keep-up-1454420730?mod=yahoo_hs Link to comment Share on other sites More sharing options...
orthopa Posted February 2, 2016 Share Posted February 2, 2016 The market is certainly not liking the lastest earnings report. Down 9% in early trading today. Dividend yield pushing 7.5% (for now). Oil’s Race to the Bottom: Can BP Keep Up? http://www.wsj.com/articles/oils-race-to-the-bottom-can-bp-keep-up-1454420730?mod=yahoo_hs True at the same time BP is trading where it was 8 days ago and oil is 10% lower. I'm not getting all that excited about that. Dudley says company can comfortably take on debt if needed to keep div. There is 26.3B in cash on balance sheet and company burned through 3.37B this year with oil around ~50 a barrel for the year? Cap ex went down 4B this year with more cuts to come this year via lay offs and shutting of projects. Every 10% cut in cap ex funds nearly a 1/3 of the div. Question is, is 26.3 on balance sheet at say at 6B a year cash burn rate with oil where it is, more cap ex cuts and the capacity to borrow going to put the div at risk? PlynchJr, what do you think? Link to comment Share on other sites More sharing options...
PLynchJr Posted February 2, 2016 Share Posted February 2, 2016 Good points. They seem determined to keep the div but it seems likely to be cut if oil prices don't recover somewhat "soon". They've cut before and if times get tough enough history is likely to repeat IMO. I'm interested but watching from the sidelines right now. I just have no idea at all where oil prices are going. Link to comment Share on other sites More sharing options...
CorpRaider Posted February 2, 2016 Share Posted February 2, 2016 Man, I know nothing, but it seems like this industry needs some major consolidation like back when the oil majors in the U.S. went from ~6 to ~3. I guess people are waiting to pick up the assets in bankruptcy... Link to comment Share on other sites More sharing options...
fareastwarriors Posted March 5, 2020 Share Posted March 5, 2020 ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Link to comment Share on other sites More sharing options...
Jurgis Posted March 6, 2020 Share Posted March 6, 2020 ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Forget SPCE! VTIQ/NKLA iz da new shizz homies! 8) Link to comment Share on other sites More sharing options...
plato1976 Posted March 14, 2020 Share Posted March 14, 2020 One week after he bought @30 it went down to 20 ...... from 3x EBITDA to near 2X and more than 12% div yield anyone worries about the debt load? ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Link to comment Share on other sites More sharing options...
John Hjorth Posted March 14, 2020 Share Posted March 14, 2020 plato, It simply implies, that you have the opportunity to do much better than Mr. Ubben on BP. The rest is up to you, basically. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted March 15, 2020 Share Posted March 15, 2020 One week after he bought @30 it went down to 20 ...... from 3x EBITDA to near 2X and more than 12% div yield anyone worries about the debt load? ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Re Debt load: I don't have the #s in front of me, but IIRC BP is the most indebted of the oil majors when measured on a debt-to-equity basis. This is probably a consequence of the Deepwater Horizon spill Link to comment Share on other sites More sharing options...
Jurgis Posted May 12, 2020 Share Posted May 12, 2020 ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Forget SPCE! VTIQ/NKLA iz da new shizz homies! 8) What did I say? SPAC electric trucks, yo. Datz how we roll. Link to comment Share on other sites More sharing options...
JRM Posted May 13, 2020 Share Posted May 13, 2020 ValueAct’s Jeffrey Ubben buys BP and says oil company can be ‘part of the solution’ https://www.cnbc.com/2020/03/04/valueacts-jeffrey-ubben-buys-bp-and-says-oil-company-can-be-part-of-the-solution.html full interview Forget SPCE! VTIQ/NKLA iz da new shizz homies! 8) What did I say? SPAC electric trucks, yo. Datz how we roll. The look on the Nikola CEO's face when Jeff starting talking up BP was hilarious. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now