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BP Scores Deal to Divest Mozambique Assets to TotalEnergies
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BP plc (BP - Free Report) entered an agreement to divest its retail network, wholesale fuel business and logistics assets in Mozambique to TotalEnergies (TTE - Free Report) .
The to-be-acquired assets involve a network of 26 service stations and a significant customer base. Beside this, the acquisition involves BP's 50% stake in Samcol.
Samcol is the logistics company, which operates the Matola, Beira and Nacala fuel-import terminals. It is a joint venture established by BP and TotalEnergies. The terminals in Mozambique are the main components to capture the current and future sources of value in Mozambique and the nearby East African countries. The companies did not reveal any financial details about the agreement.
Investors and environmental groups brought immense pressure on the energy industry to reduce emissions to save the planet from climate change. As a result, European energy majors are changing course and investing more in renewable energy sources. BP, like its European peers, is divesting a large portion of its oil and gas assets to shift to a more sustainable energy pathway.
TotalEnergies is one of the leading players in the downstream petroleum products market in Mozambique, with a network of fuel stations, industrial and mining customers, lubricants, and logistics. It had an estimated market share of around 14%. The latest acquisition will bolster TotalEnergies’ position as the leading retailer of petroleum products in the country. The assets complement TTE's existing network of 57 service stations and B2B business.
The agreement shows TotalEnergies' interest in pursuing investment opportunities in Mozambique's energy sector. TotalEnergies aims to deploy its multi-energy strategy in Mozambique through the retailing of petroleum products for mobility, the major Mozambique LNG project and related supply of domestic gas, and opportunities in renewables.
Company Profile & Price Performance
Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy. The BP stock has gained 26.7% in the past six months.
APA Corporation (APA - Free Report) is one of the world's leading independent energy companies that engage in the exploration, development and production of natural gas, crude oil and natural gas liquids. APA boasts a large geographically diversified reserve base, with multi-year trends in reserve replacement.
APA is expected to see an earnings growth of 59.1% in 2022. At its third-quarter earnings release, APA said that it is on track to generate around $2 billion in free cash flow for the full year, assuming the current strip prices for the remainder of 2021. This, together with the company’s aggressive cost management initiatives, should help in its debt reduction goal and achieve its leverage target of less than 1.5 times debt-to-EBITDA.
Chevron Corporation (CVX - Free Report) is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Chevron's average output in the first nine months of 2021 was 3,093 thousand oil-equivalent barrels per day (MBOE/d), up from 3,018 MBOE/d in the year-ago period.
Chevron is expected to see an earnings growth of 29% in 2022. As of Dec 31, CVX had $5.6 billion in cash and cash equivalents, and total debt of $31.4 billion, with a debt-to-total capitalization of a modest 18.4%. Chevron also has a high investment grade rating of AA from S&P, which translates into low borrowing rates.
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BP Scores Deal to Divest Mozambique Assets to TotalEnergies
BP plc (BP - Free Report) entered an agreement to divest its retail network, wholesale fuel business and logistics assets in Mozambique to TotalEnergies (TTE - Free Report) .
The to-be-acquired assets involve a network of 26 service stations and a significant customer base. Beside this, the acquisition involves BP's 50% stake in Samcol.
Samcol is the logistics company, which operates the Matola, Beira and Nacala fuel-import terminals. It is a joint venture established by BP and TotalEnergies. The terminals in Mozambique are the main components to capture the current and future sources of value in Mozambique and the nearby East African countries. The companies did not reveal any financial details about the agreement.
Investors and environmental groups brought immense pressure on the energy industry to reduce emissions to save the planet from climate change. As a result, European energy majors are changing course and investing more in renewable energy sources. BP, like its European peers, is divesting a large portion of its oil and gas assets to shift to a more sustainable energy pathway.
TotalEnergies is one of the leading players in the downstream petroleum products market in Mozambique, with a network of fuel stations, industrial and mining customers, lubricants, and logistics. It had an estimated market share of around 14%. The latest acquisition will bolster TotalEnergies’ position as the leading retailer of petroleum products in the country. The assets complement TTE's existing network of 57 service stations and B2B business.
The agreement shows TotalEnergies' interest in pursuing investment opportunities in Mozambique's energy sector. TotalEnergies aims to deploy its multi-energy strategy in Mozambique through the retailing of petroleum products for mobility, the major Mozambique LNG project and related supply of domestic gas, and opportunities in renewables.
Company Profile & Price Performance
Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy. The BP stock has gained 26.7% in the past six months.
Zacks Rank & Other Key Picks
BP currently flaunts a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might also look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
APA Corporation (APA - Free Report) is one of the world's leading independent energy companies that engage in the exploration, development and production of natural gas, crude oil and natural gas liquids. APA boasts a large geographically diversified reserve base, with multi-year trends in reserve replacement.
APA is expected to see an earnings growth of 59.1% in 2022. At its third-quarter earnings release, APA said that it is on track to generate around $2 billion in free cash flow for the full year, assuming the current strip prices for the remainder of 2021. This, together with the company’s aggressive cost management initiatives, should help in its debt reduction goal and achieve its leverage target of less than 1.5 times debt-to-EBITDA.
Chevron Corporation (CVX - Free Report) is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Chevron's average output in the first nine months of 2021 was 3,093 thousand oil-equivalent barrels per day (MBOE/d), up from 3,018 MBOE/d in the year-ago period.
Chevron is expected to see an earnings growth of 29% in 2022. As of Dec 31, CVX had $5.6 billion in cash and cash equivalents, and total debt of $31.4 billion, with a debt-to-total capitalization of a modest 18.4%. Chevron also has a high investment grade rating of AA from S&P, which translates into low borrowing rates.