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BP Beats Q1 Earnings Estimates, Announces Share Buyback
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BP plc (BP - Free Report) has reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share and also rose from 78 cents reported a year ago.
Total quarterly revenues of $51,220 million missed the Zacks Consensus Estimate of $53,134 million. However, the top line increased from $36,492 million in the year-ago quarter.
The strong quarterly earnings were driven by higher realizations of commodity prices.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel.
Operational Performance
Oil Production & Operations:
In the first quarter, BP has reported total production of 1,286 thousand barrels of oil equivalent per day (MBoe/d), down from 1,309 MBoe/d in the year-ago quarter.
BP sold liquids at $83.47 a barrel in the first quarter compared with $52.92 in the prior-year period. It sold natural gas at $9.40 per thousand cubic feet compared with $4.11 in the year-ago quarter. Overall price realization rose to $76.64 per Boe from the year-ago level of $46.81.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $4,683 million. The figure jumped from earnings of $1,565 million in the year-ago quarter. Higher commodity price realizations primarily caused the upside.
Gas & Low Carbon Energy:
Segmental profits totaled $3,595 million, improving from earnings of $2,270 million in the year-ago quarter, primarily led by increased oil equivalent production and prices.
In the first quarter, the total production of 966 thousand barrels of MBoe/d improved from 909 MBoe/d in the year-ago quarter. Key project start-ups primarily contributed to the production.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2,156 million, up significantly from $656 million in the year-ago quarter. A favorable refining business aided the segment.
BP-operated refining availability for the March-end quarter was 95%, reflecting an increase from 94.8% in the year-ago quarter. Total refinery throughputs from the first quarter were reported at 1,650 thousand barrels per day (MBbl/D), improving from 1,601 MBbl/D in the prior-year quarter.
Capex
Organic capital expenditure for the reported quarter was $2,573 million. The company has reported total capital spending for the quarter at $2,929 million.
Financials
BP's net debt, including leases, was $36,129 million at the end of the first quarter versus $42,380 million in the prior-year quarter. Gearing was recorded at 31.5% compared with 31.9% in the prior-year quarter.
Outlook
For 2022, BP reiterated its capital expenditure guidance of $14-15 billion. It expects the same to be $14-16 billion per annum through 2025.
BP expects the upstream production to remain flat year over year in 2022. For the second quarter of the year, the company projects a sequential decline in upstream production due to a base decline and higher maintenance.
The company expects to receive $2-3 billion of divestment and other proceeds this year.
A Glimpse of Q1 Results of Other Integrated Energy Companies
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
Hess Corporation (HES - Free Report) reported first-quarter 2022 earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.12. The higher commodity price realizations backed the strong quarterly results.
As of Mar 31, 2022, Hess Corporation had $1,370 million in cash and cash equivalents. HES’ long-term debt was $7,934 million at the first-quarter end. The current maturity of the long-term debt is $22 million.
Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2022 earnings per share of 62 cents, missing the Zacks Consensus Estimate of earnings of 83 cents. Lower-than-expected earnings can be attributed to increased transportation and blending costs, as well as expenses for purchased products.
As of Mar 31, 2022, Cenovus had cash and cash equivalents of C$3,399 million. Total long-term debt was C$11,744 million. CVE increased the quarterly base dividend to 10.5 Canadian cents per share, suggesting a 200% increase from 3.5 Canadian cents per share.
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BP Beats Q1 Earnings Estimates, Announces Share Buyback
BP plc (BP - Free Report) has reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share and also rose from 78 cents reported a year ago.
Total quarterly revenues of $51,220 million missed the Zacks Consensus Estimate of $53,134 million. However, the top line increased from $36,492 million in the year-ago quarter.
The strong quarterly earnings were driven by higher realizations of commodity prices.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
Share Repurchases
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel.
Operational Performance
Oil Production & Operations:
In the first quarter, BP has reported total production of 1,286 thousand barrels of oil equivalent per day (MBoe/d), down from 1,309 MBoe/d in the year-ago quarter.
BP sold liquids at $83.47 a barrel in the first quarter compared with $52.92 in the prior-year period. It sold natural gas at $9.40 per thousand cubic feet compared with $4.11 in the year-ago quarter. Overall price realization rose to $76.64 per Boe from the year-ago level of $46.81.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $4,683 million. The figure jumped from earnings of $1,565 million in the year-ago quarter. Higher commodity price realizations primarily caused the upside.
Gas & Low Carbon Energy:
Segmental profits totaled $3,595 million, improving from earnings of $2,270 million in the year-ago quarter, primarily led by increased oil equivalent production and prices.
In the first quarter, the total production of 966 thousand barrels of MBoe/d improved from 909 MBoe/d in the year-ago quarter. Key project start-ups primarily contributed to the production.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2,156 million, up significantly from $656 million in the year-ago quarter. A favorable refining business aided the segment.
BP-operated refining availability for the March-end quarter was 95%, reflecting an increase from 94.8% in the year-ago quarter. Total refinery throughputs from the first quarter were reported at 1,650 thousand barrels per day (MBbl/D), improving from 1,601 MBbl/D in the prior-year quarter.
Capex
Organic capital expenditure for the reported quarter was $2,573 million. The company has reported total capital spending for the quarter at $2,929 million.
Financials
BP's net debt, including leases, was $36,129 million at the end of the first quarter versus $42,380 million in the prior-year quarter. Gearing was recorded at 31.5% compared with 31.9% in the prior-year quarter.
Outlook
For 2022, BP reiterated its capital expenditure guidance of $14-15 billion. It expects the same to be $14-16 billion per annum through 2025.
BP expects the upstream production to remain flat year over year in 2022. For the second quarter of the year, the company projects a sequential decline in upstream production due to a base decline and higher maintenance.
The company expects to receive $2-3 billion of divestment and other proceeds this year.
Zacks Rank
BP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Glimpse of Q1 Results of Other Integrated Energy Companies
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
Hess Corporation (HES - Free Report) reported first-quarter 2022 earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.12. The higher commodity price realizations backed the strong quarterly results.
As of Mar 31, 2022, Hess Corporation had $1,370 million in cash and cash equivalents. HES’ long-term debt was $7,934 million at the first-quarter end. The current maturity of the long-term debt is $22 million.
Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2022 earnings per share of 62 cents, missing the Zacks Consensus Estimate of earnings of 83 cents. Lower-than-expected earnings can be attributed to increased transportation and blending costs, as well as expenses for purchased products.
As of Mar 31, 2022, Cenovus had cash and cash equivalents of C$3,399 million. Total long-term debt was C$11,744 million. CVE increased the quarterly base dividend to 10.5 Canadian cents per share, suggesting a 200% increase from 3.5 Canadian cents per share.