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 to Acquire Stake in Australia's Renewable Energy Project
Read MoreHide Full Article
BP plc (BP - Free Report) entered an agreement to acquire a 40.5% interest in a renewable energy project in Australia, capable of becoming one of the leading producers of green hydrogen globally.
The company is taking the initiative on the project, known as the Asian Renewable Energy Hub (“AREH”), to produce large amounts of hydrogen from renewable energy in Australia’s Outback.
As part of the deal, BP will take over the operatorship of the renewable energy project from Jul 1, 2022. The project is expected to cover a 2,500-square-mile area, which is greater than the size of Delaware. Notably, the company did not reveal any financial details of the agreement.
AREH attempts to produce onshore wind and solar electricity in multiple phases to a total capacity of up to 26 gigawatts. This is equivalent to producing more than 90 terawatt-hours per year, which is one-third of the overall electricity generated in Australia in 2020.
AREH is in a favorable position, with access to adequate solar and wind resources, and continuous production. At full capacity, AREH is capable of producing 1.6 million tons of green hydrogen or 9 million tons of green ammonia per year.
Hydrogen has the potential to reduce carbon emissions from sectors like trucking, shipping, steelmaking and fertilizer production, which significantly contribute to climate change. AREH is expected to significantly contribute to Australia and the wider Asia Pacific region’s sustainable energy transition.
BP aims to reduce carbon emissions from operations by 30-35% by 2030. The project aligns with the company’s strategy to reduce its dependence on fossil fuels and aims to hold a 10% share of the global hydrogen market. The company plans to commence power production at AREH by 2029.
Company Profile & Price Performance
Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.
Shares of the company have underperformed the industry in the past six months. The stock has gained 17.9% compared with the industry's 38.2% growth.
Antero Resources Corporation (AR - Free Report) is among the fast-growing natural gas producers in the United States. For 2022, AR expects to generate more than $2.5 billion of free cash flow, suggesting a significant improvement from the $849 million reported last year.
Antero Resources is targeting a capital return program of 25-50% of free cash flow annually, beginning with the implementation of the share repurchase program. The company’s board authorized a share repurchase program that enables it to repurchase up to $1 billion of outstanding common stock.
Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy company. In order to capitalize on the mounting demand for clean energy, XOM is making efforts to create more efficient fuels, while reducing emissions.
ExxonMobil has increased its stock repurchase program from $10 billion to $30 billion. The energy giant has planned to execute the repurchase program through next year. Also, XOM has significantly lower debt exposure than other integrated majors.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies. With improving hydrocarbon prices, net cash flow at the end of first-quarter 2022 was $8.7 billion compared with $1.4 billion in the year-ago period.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. As of Mar 31, 2022, cash and cash equivalents were $31,276 million. This was enough to address the current borrowings of $16,759 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP to Acquire Stake in Australia's Renewable Energy Project
BP plc (BP - Free Report) entered an agreement to acquire a 40.5% interest in a renewable energy project in Australia, capable of becoming one of the leading producers of green hydrogen globally.
The company is taking the initiative on the project, known as the Asian Renewable Energy Hub (“AREH”), to produce large amounts of hydrogen from renewable energy in Australia’s Outback.
As part of the deal, BP will take over the operatorship of the renewable energy project from Jul 1, 2022. The project is expected to cover a 2,500-square-mile area, which is greater than the size of Delaware. Notably, the company did not reveal any financial details of the agreement.
AREH attempts to produce onshore wind and solar electricity in multiple phases to a total capacity of up to 26 gigawatts. This is equivalent to producing more than 90 terawatt-hours per year, which is one-third of the overall electricity generated in Australia in 2020.
AREH is in a favorable position, with access to adequate solar and wind resources, and continuous production. At full capacity, AREH is capable of producing 1.6 million tons of green hydrogen or 9 million tons of green ammonia per year.
Hydrogen has the potential to reduce carbon emissions from sectors like trucking, shipping, steelmaking and fertilizer production, which significantly contribute to climate change. AREH is expected to significantly contribute to Australia and the wider Asia Pacific region’s sustainable energy transition.
BP aims to reduce carbon emissions from operations by 30-35% by 2030. The project aligns with the company’s strategy to reduce its dependence on fossil fuels and aims to hold a 10% share of the global hydrogen market. The company plans to commence power production at AREH by 2029.
Company Profile & Price Performance
Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.
Shares of the company have underperformed the industry in the past six months. The stock has gained 17.9% compared with the industry's 38.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
BP currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Antero Resources Corporation (AR - Free Report) is among the fast-growing natural gas producers in the United States. For 2022, AR expects to generate more than $2.5 billion of free cash flow, suggesting a significant improvement from the $849 million reported last year.
Antero Resources is targeting a capital return program of 25-50% of free cash flow annually, beginning with the implementation of the share repurchase program. The company’s board authorized a share repurchase program that enables it to repurchase up to $1 billion of outstanding common stock.
Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy company. In order to capitalize on the mounting demand for clean energy, XOM is making efforts to create more efficient fuels, while reducing emissions.
ExxonMobil has increased its stock repurchase program from $10 billion to $30 billion. The energy giant has planned to execute the repurchase program through next year. Also, XOM has significantly lower debt exposure than other integrated majors.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies. With improving hydrocarbon prices, net cash flow at the end of first-quarter 2022 was $8.7 billion compared with $1.4 billion in the year-ago period.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. As of Mar 31, 2022, cash and cash equivalents were $31,276 million. This was enough to address the current borrowings of $16,759 million.