Back to top

Image: Bigstock

BP Doubles Oil Production From Its Thunder Horse Project

Read MoreHide Full Article

BP plc (BP - Free Report) doubled crude oil production from its Thunder Horse project in the deepwater Gulf of Mexico, per a report by Reuters.

For the first time in more than a year, production at the platform increased to more than 200,000 barrels of oil equivalent per day (Boe/d) from the production of 100,000 Boe/d last May.

The Thunder Horse field is one of BP’s largest discoveries in the Gulf of Mexico. BP operates the field with a 75% working interest. The Thunder Horse platform, about 150 miles southeast of New Orleans, can produce up to 250,000 barrels of oil a day and up to 200 million cubic feet of natural gas a day.

BP currently operates four production platforms, namely Thunder Horse, Atlantis, Mad Dog and Na Kika, in the deepwater Gulf of Mexico. In 2021, the U.S. Gulf of Mexico produced 1.7 million barrels per day of crude oil, mostly from deepwater fields.

Offshore oil and gas in the Gulf of Mexico is a major energy source in the United States. The U.S. Gulf of Mexico is one of the key operating areas of BP.  The Thunder Horse project highlights the company’s continued growth and momentum in a region, which will remain a significant part of its global portfolio for years.

BP currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Nabors Industries Ltd. (NBR - Free Report) is one of the largest land-drilling contractors globally, conducting oil, gas and geothermal land drilling operations. NBR is expected to see an earnings rise of 58.5% in 2022.

Nabors' efforts to lower costs and concentrate on cash flows also bode well. The drilling contractor plans to limit the 2022 capex to $95-$100 million. Better-than-expected cost-cutting initiatives and a capital spending program could favorably impact Nabors’s ability to achieve forecasted operating results.

ProPetro Holding Corp. (PUMP - Free Report) is an oilfield service provider operating primarily in the Permian Basin over west Texas and New Mexico. PUMP is expected to see an earnings rise of 164.2% in 2022.

As of Sept 30, ProPetro had $43.2 million in cash and cash equivalents, and total liquidity of $155 million. ProPetro’s balance sheet is debt-free, which provides a potential lifeline amid the difficult operating environment. The steep cutbacks to its capital budget further strengthen its financial position.

Helmerich & Payne Inc. (HP - Free Report) is a major land and offshore drilling contractor in the western hemisphere, having the youngest and most efficient drilling fleet. HP is expected to see an earnings surge of 280% in 2022.

HP boasts a strong balance sheet, carrying $542.3 million in long-term debt. The company’s debt-to-capitalization stands at just 16.6% compared with many of its peers that are hugely burdened with debts.

Published in