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BP to Recommence Share Repurchase as Crude Bounces Back
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BP Plc (BP - Free Report) recently commenced a share buyback program, keeping with the plans announced along with the third-quarter 2017 earnings report. This makes BP the first leading energy player in Europe to recommence buybacks after 2014, when repurchases were stalled as crude price started falling on supply glut woes.
As per the program, BP will repurchase no more than 1.96 billion shares between Nov 15 and the company’s annual general meeting in 2018.
The company’s strong financials, primarily supported by crude price recovery, are backing this decision. During the third quarter, BP reported adjusted earnings of 57 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line not only surpassed the Zacks Consensus Estimate of 50 cents but was way higher than the year-ago 30 cents. Moreover, the improving financial position shows that the firm has come a long way since the 2010 oil spill incident in the Macondo Prospect.
Investors should know that with the buyback, BP will be able to overcome the dilution problem under its scrip dividend plan that entitles the investors’ options for choosing stocks as payout instead of cash.
Such developments are reflected in BP’s impressive price chart. Year to date, the integrated energy firm rallied 4.6%, outperforming the industry’s 3.6% gain.
Presently, BP carries a Zacks Rank #3 (Hold), signifying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Headquartered in Irving, TX, ExxonMobil is the largest publicly traded energy firm. The company managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 8.81%.
Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.
Zacks’ Best Private Investment Ideas
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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BP to Recommence Share Repurchase as Crude Bounces Back
BP Plc (BP - Free Report) recently commenced a share buyback program, keeping with the plans announced along with the third-quarter 2017 earnings report. This makes BP the first leading energy player in Europe to recommence buybacks after 2014, when repurchases were stalled as crude price started falling on supply glut woes.
As per the program, BP will repurchase no more than 1.96 billion shares between Nov 15 and the company’s annual general meeting in 2018.
The company’s strong financials, primarily supported by crude price recovery, are backing this decision. During the third quarter, BP reported adjusted earnings of 57 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line not only surpassed the Zacks Consensus Estimate of 50 cents but was way higher than the year-ago 30 cents. Moreover, the improving financial position shows that the firm has come a long way since the 2010 oil spill incident in the Macondo Prospect.
Investors should know that with the buyback, BP will be able to overcome the dilution problem under its scrip dividend plan that entitles the investors’ options for choosing stocks as payout instead of cash.
Such developments are reflected in BP’s impressive price chart. Year to date, the integrated energy firm rallied 4.6%, outperforming the industry’s 3.6% gain.
Presently, BP carries a Zacks Rank #3 (Hold), signifying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
A few better-ranked players in the energy space are ExxonMobil Corporation (XOM - Free Report) , China Petroleum & Chemical Corporation and Northern Oil and Gas, Inc. (NOG - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Irving, TX, ExxonMobil is the largest publicly traded energy firm. The company managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 8.81%.
Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>