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BP Might Allocate Below $17B of Capital for 2017 & 2018
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According to a recent Bloomberg report, BP plc (BP - Free Report) is unlikely to increase capital spending in spite of the improvement in crude prices.
The energy major is likely to spend below $17 billion in 2017 and 2018, which is almost $6 billion lower than the amount disbursed during 2014. Notably, oil started showing pricing weakness since mid-2014 and the energy market had to suffer for more than two years.
Nonetheless, the company is expected to pay dividends and will be able to continue spending if crude hovers around $55 per barrel. This will mark an end to debt escalation and negative cash flow for the company. The company’s CEO, Bob Dudley, added that the company now has the capacity to invest as the majority of the liabilities related to 2010 Gulf of Mexico spill have been settled.
Moreover, the company might progress with the expensive deepwater exploration developments if there is sufficient infrastructure to support the projects. Overall, the company is coming out of its tough time and is getting ready to cope up with any downturn successfully in the near future.
London-based BP is one of the leading integrated energy players in the world. The company is expected to report fourth-quarter 2016 earnings on Feb 7, 2017. The Earnings ESP for the stock now stands at -55.56%.
Over the last three months, shares of BP underperformed the Zacks categorized Oil & Gas-International Integrated industry. During the aforesaid period, the company's shares gained 4% as against almost 8% improvement for the broader industry.
Currently, the company carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Imperial Oil Limited (IMO - Free Report) , Suncor Energy Inc. (SU - Free Report) and Newfield Exploration Company . Both Imperial Oil and Suncor sport a Zacks Rank #1 (Strong Buy), while Newfield carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Imperial Oil is undervalued, as revealed by its forward PE ratio of 17.8 compared with 135.5 for the broader industry.
Suncor posted an average earnings surprise of 40.55% in the last four quarters.
Newfield surpassed the Zacks Consensus Estimate in three of the last four quarters with an average earnings surprise of 754.83%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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BP Might Allocate Below $17B of Capital for 2017 & 2018
According to a recent Bloomberg report, BP plc (BP - Free Report) is unlikely to increase capital spending in spite of the improvement in crude prices.
The energy major is likely to spend below $17 billion in 2017 and 2018, which is almost $6 billion lower than the amount disbursed during 2014. Notably, oil started showing pricing weakness since mid-2014 and the energy market had to suffer for more than two years.
Nonetheless, the company is expected to pay dividends and will be able to continue spending if crude hovers around $55 per barrel. This will mark an end to debt escalation and negative cash flow for the company. The company’s CEO, Bob Dudley, added that the company now has the capacity to invest as the majority of the liabilities related to 2010 Gulf of Mexico spill have been settled.
Moreover, the company might progress with the expensive deepwater exploration developments if there is sufficient infrastructure to support the projects. Overall, the company is coming out of its tough time and is getting ready to cope up with any downturn successfully in the near future.
London-based BP is one of the leading integrated energy players in the world. The company is expected to report fourth-quarter 2016 earnings on Feb 7, 2017. The Earnings ESP for the stock now stands at -55.56%.
Over the last three months, shares of BP underperformed the Zacks categorized Oil & Gas-International Integrated industry. During the aforesaid period, the company's shares gained 4% as against almost 8% improvement for the broader industry.
Currently, the company carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Imperial Oil Limited (IMO - Free Report) , Suncor Energy Inc. (SU - Free Report) and Newfield Exploration Company . Both Imperial Oil and Suncor sport a Zacks Rank #1 (Strong Buy), while Newfield carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Imperial Oil is undervalued, as revealed by its forward PE ratio of 17.8 compared with 135.5 for the broader industry.
Suncor posted an average earnings surprise of 40.55% in the last four quarters.
Newfield surpassed the Zacks Consensus Estimate in three of the last four quarters with an average earnings surprise of 754.83%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>