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BP Misses Q4 Earnings Estimates, Expects 2024 Production Hike
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BP plc (BP - Free Report) has reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from the $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from the $70,356 million reported in the year-ago quarter.
Lower realizations of commodity prices led to weak quarterly results.
For the fourth quarter, BP reported a total production of 1,421 thousand barrels of oil equivalent per day (Mboe/d), up from the 1,309 MBoe/d recorded in the year-ago quarter. The metric also beat our estimate of 1,260 MBoe/d.
BP sold liquids at $76.22 per barrel in the fourth quarter compared with $80.43 in the prior-year period. The metric is slightly above our estimate of $75.70 per barrel.
The company sold natural gas at $3.65 per thousand cubic feet, declining from the $10.20 reported in the year-ago quarter and missing our estimate of $5.31.
Overall hydrocarbon price realization declined to $59.69 per Boe from $74.60 and lagged our estimate of $68.06.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3,549 million. The figure declined from the $4,428 million recorded in the year-ago quarter. The downside primarily resulted from lower commodity price realizations.
Gas & Low Carbon Energy:
Segmental profits totaled $1,777 million, significantly down from the $3,148 million registered in the year-ago quarter primarily due to a production decline and, lower liquid and gas prices. The figure also missed our projection of $3,895 million.
In the fourth quarter, total production of 899 MBoe/d declined from 956 MBoe/d in the year-ago quarter.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $803 million, down from $1,902 million in the year-ago quarter. The figure also missed our projection of $1,785 million. A significant decline in the refining marker margin and lower contribution from oil trading affected the segment.
BP-operated refining availability in the December-end quarter was 96.1%, indicating an increase from 95% in the year-ago quarter.
Total refinery throughputs from the fourth quarter were 1,312 thousand barrels per day (MBbl/D), down from 1,378 MBbl/D in the corresponding period of 2022. The figure also lagged our estimate of 1,677.6 MBbl/D.
Capex
Organic capital expenditure in the reported quarter totaled $4,673 million. The company reported total capital spending of $4,711 million for the quarter.
Financials
BP's net debt was $20,912 million at the end of the fourth quarter. Also, the firm announced gearing of 19.7% in the fourth quarter.
Outlook
In the first quarter of 2024, BP anticipates a sequential increase in its reported upstream production.
For 2024, the British energy giant forecasts both reported and underlying upstream production to be slightly higher than the previous year’s reported levels.
The company has set its capital expenditure budget for 2024 at $16 billion. Additionally, BP anticipates a slight year-over-year increase in its depreciation, depletion and amortization expenses for 2024.
BP anticipates generating $2-$3 billion from divestments and other financial transactions in 2024, aiming to reach $25 billion in the period between the second half of 2020 and 2025.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 79 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 163.3% year over year.
Vaalco Energy (EGY - Free Report) is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. The company’s earnings for 2024 are expected to surge 325.7% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the U.S. Their core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.17. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. The company’s earnings for 2024 are expected to rise 13.5% year over year.
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BP Misses Q4 Earnings Estimates, Expects 2024 Production Hike
BP plc (BP - Free Report) has reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from the $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from the $70,356 million reported in the year-ago quarter.
Lower realizations of commodity prices led to weak quarterly results.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
Operational Performance
Oil Production & Operations:
For the fourth quarter, BP reported a total production of 1,421 thousand barrels of oil equivalent per day (Mboe/d), up from the 1,309 MBoe/d recorded in the year-ago quarter. The metric also beat our estimate of 1,260 MBoe/d.
BP sold liquids at $76.22 per barrel in the fourth quarter compared with $80.43 in the prior-year period. The metric is slightly above our estimate of $75.70 per barrel.
The company sold natural gas at $3.65 per thousand cubic feet, declining from the $10.20 reported in the year-ago quarter and missing our estimate of $5.31.
Overall hydrocarbon price realization declined to $59.69 per Boe from $74.60 and lagged our estimate of $68.06.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3,549 million. The figure declined from the $4,428 million recorded in the year-ago quarter. The downside primarily resulted from lower commodity price realizations.
Gas & Low Carbon Energy:
Segmental profits totaled $1,777 million, significantly down from the $3,148 million registered in the year-ago quarter primarily due to a production decline and, lower liquid and gas prices. The figure also missed our projection of $3,895 million.
In the fourth quarter, total production of 899 MBoe/d declined from 956 MBoe/d in the year-ago quarter.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $803 million, down from $1,902 million in the year-ago quarter. The figure also missed our projection of $1,785 million. A significant decline in the refining marker margin and lower contribution from oil trading affected the segment.
BP-operated refining availability in the December-end quarter was 96.1%, indicating an increase from 95% in the year-ago quarter.
Total refinery throughputs from the fourth quarter were 1,312 thousand barrels per day (MBbl/D), down from 1,378 MBbl/D in the corresponding period of 2022. The figure also lagged our estimate of 1,677.6 MBbl/D.
Capex
Organic capital expenditure in the reported quarter totaled $4,673 million. The company reported total capital spending of $4,711 million for the quarter.
Financials
BP's net debt was $20,912 million at the end of the fourth quarter. Also, the firm announced gearing of 19.7% in the fourth quarter.
Outlook
In the first quarter of 2024, BP anticipates a sequential increase in its reported upstream production.
For 2024, the British energy giant forecasts both reported and underlying upstream production to be slightly higher than the previous year’s reported levels.
The company has set its capital expenditure budget for 2024 at $16 billion. Additionally, BP anticipates a slight year-over-year increase in its depreciation, depletion and amortization expenses for 2024.
BP anticipates generating $2-$3 billion from divestments and other financial transactions in 2024, aiming to reach $25 billion in the period between the second half of 2020 and 2025.
Zacks Rank & Stocks to Consider
BP currently carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at the following company that presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 79 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 163.3% year over year.
Vaalco Energy (EGY - Free Report) is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. The company’s earnings for 2024 are expected to surge 325.7% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the U.S. Their core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.17. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. The company’s earnings for 2024 are expected to rise 13.5% year over year.