We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Approves Mad Dog Phase 2 Project, Strengthens U.S. Ties
Read MoreHide Full Article
BP plc (BP - Free Report) recently took initiative to further strengthen its ties with the U.S. through the approval of the Mad Dog Phase 2 project in the country. BP’s price chart reveals that its performance is almost at par with the Zacks-categorized Zacks Sub Industry – Oil & Gas – International Integrated Market, year to date. While BP has gained 13.5%, the broader market has increased 13.7%. We wait to see if the aforesaid announcement leads to further stock price movement.
Mad Dog Phase 2 will comprise a new floating production platform, which will have a producing capacity of about 140,000 gross barrels of crude oil per day from up to 14 production wells. The project is expected to come online in late 2021.
BP is the operator of the project with an interest of 60.5%. Other co-owners include BHP Billiton and Union Oil Company of California – an affiliate of Chevron U.S.A. Inc. (CVX - Free Report) . These companies hold 23.9% and 15.6%, respectively. In 2013, BP and its partners decided to re-examine the Mad Dog Phase 2 project after an initial design proved too complicated and expensive.
BP has since been working with the co-owners and contractors to streamline and systematize the platform’s design to lower overall project cost by about 60%. At present, the improved $9 billion project – including capacity for water injection – is anticipated to be profitable at or below current oil prices.
A final investment decision (FID) on Mad Dog Phase 2 has been reached by BP, while BHP Billiton and Chevron (for the Union Oil Company of California interest), are anticipated to reach a FID in the future.
Discovered in 1998 by BP, the Mad Dog field commenced production with its first platform in 2005. Consistent appraisal drilling in the field during 2009 and 2011 increased the resource estimate of the field by two fold to over 4 billion barrels of oil equivalent, prompting the need for another platform at the field.
The second Mad Dog platform will be located about six miles to the southwest of the existing Mad Dog platform. The existing platform, located in 4,500 feet of water about 190 miles south of New Orleans, has the capacity to produce about 80,000 gross barrels of oil and 60 million gross cubic feet of natural gas per day.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BP Approves Mad Dog Phase 2 Project, Strengthens U.S. Ties
BP plc (BP - Free Report) recently took initiative to further strengthen its ties with the U.S. through the approval of the Mad Dog Phase 2 project in the country. BP’s price chart reveals that its performance is almost at par with the Zacks-categorized Zacks Sub Industry – Oil & Gas – International Integrated Market, year to date. While BP has gained 13.5%, the broader market has increased 13.7%. We wait to see if the aforesaid announcement leads to further stock price movement.
Mad Dog Phase 2 will comprise a new floating production platform, which will have a producing capacity of about 140,000 gross barrels of crude oil per day from up to 14 production wells. The project is expected to come online in late 2021.
BP is the operator of the project with an interest of 60.5%. Other co-owners include BHP Billiton and Union Oil Company of California – an affiliate of Chevron U.S.A. Inc. (CVX - Free Report) . These companies hold 23.9% and 15.6%, respectively. In 2013, BP and its partners decided to re-examine the Mad Dog Phase 2 project after an initial design proved too complicated and expensive.
BP has since been working with the co-owners and contractors to streamline and systematize the platform’s design to lower overall project cost by about 60%. At present, the improved $9 billion project – including capacity for water injection – is anticipated to be profitable at or below current oil prices.
A final investment decision (FID) on Mad Dog Phase 2 has been reached by BP, while BHP Billiton and Chevron (for the Union Oil Company of California interest), are anticipated to reach a FID in the future.
Discovered in 1998 by BP, the Mad Dog field commenced production with its first platform in 2005. Consistent appraisal drilling in the field during 2009 and 2011 increased the resource estimate of the field by two fold to over 4 billion barrels of oil equivalent, prompting the need for another platform at the field.
The second Mad Dog platform will be located about six miles to the southwest of the existing Mad Dog platform. The existing platform, located in 4,500 feet of water about 190 miles south of New Orleans, has the capacity to produce about 80,000 gross barrels of oil and 60 million gross cubic feet of natural gas per day.
BP PLC Price
BP PLC Price | BP PLC Quote
BP intends to augment production by about 800,000 net barrels of oil equivalent per day of worldwide from projects starting up between 2016 and 2020.
Zacks Rank and Stocks to Consider
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) and Futurefuel Corp. (FF - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>