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BP Appears to be a Solid Investment Bet Right Now: Here's Why
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BP plc (BP - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 116.2% this year.
What's Favoring the Stock?
The price of West Texas Intermediate crude is approaching the $95-per-barrel mark again, highlighting a substantial improvement in the past year. The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects has been delivered.
BP is expected to gain from the refining business as well. The integrated energy player has a significant portion of its refining capacities in the United States. In the country, BP operates feedstock-advantaged and sophisticated refineries. The refineries are connected to strong logistics and fuel infrastructure. Thus, with a considerable presence in the United States, the energy major is well placed to capitalize on the solid fuel demand, backed by the reopening of the economy and wider distribution of vaccines.
BP is strongly focused on returning capital to shareholders. The integrated player recently announced that it is planning to repurchase $3.5 billion in shares before declaring results for the September quarter.
ExxonMobil’s upstream operation is benefiting from the high oil price. XOM reported strong earnings thanks to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America. In 2022, ExxonMobil is likely to see earnings growth of 135.7%.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas price. For 2022, it is likely to witness earnings growth of 316.3%.
Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%.
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BP Appears to be a Solid Investment Bet Right Now: Here's Why
BP plc (BP - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 116.2% this year.
What's Favoring the Stock?
The price of West Texas Intermediate crude is approaching the $95-per-barrel mark again, highlighting a substantial improvement in the past year. The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects has been delivered.
BP is expected to gain from the refining business as well. The integrated energy player has a significant portion of its refining capacities in the United States. In the country, BP operates feedstock-advantaged and sophisticated refineries. The refineries are connected to strong logistics and fuel infrastructure. Thus, with a considerable presence in the United States, the energy major is well placed to capitalize on the solid fuel demand, backed by the reopening of the economy and wider distribution of vaccines.
BP is strongly focused on returning capital to shareholders. The integrated player recently announced that it is planning to repurchase $3.5 billion in shares before declaring results for the September quarter.
Other Stocks to Consider
Other prospective players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , EQT Corporation (EQT - Free Report) and Eni SpA (E - Free Report) . EQT Corporation and Eni carry a Zacks Rank #2 (Buy), ExxonMobil sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil’s upstream operation is benefiting from the high oil price. XOM reported strong earnings thanks to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America. In 2022, ExxonMobil is likely to see earnings growth of 135.7%.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas price. For 2022, it is likely to witness earnings growth of 316.3%.
Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%.