We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Signs $5.6B Agreement to Exit Alaska After 60 Long Years
Read MoreHide Full Article
BP plc (BP - Free Report) announced that it has signed an accord with Hilcorp Energy Co. to divest all its assets in Alaska. The transaction has been valued at $5.6 billion. With the deal's closure by 2020, awaiting approvals from the state and federal bodies, BP will exit Alaskan operations after 60 long years.
Deal Motives
Precisely, the assets to be divested entails BP’s entire upstream and midstream operations in Alaska. This includes the British energy giant’s stake in the Prudhoe Bay — the largest oil field in North America — and the Trans-Alaska Pipeline System — spreading over 800 miles and transporting oil to the Port of Valdez.
Investors should know that in the short term, BP will be getting $4 billion of the total transaction value. The company will receive the additional $1.6 billion once the buyer attains certain financial goals from this asset.
Previously, Alaska was competing with some OPEC members, when the U.S. state pumped crude volumes at a rate of two million barrels every day. However, Alaska has lost its appeal and is presently the sixth largest oil-producing state in the United States.
Overall, the U.S. shale plays that have been gaining prominence following the surge in oil production, backed by fracking, has snatched the limelight from Alaska, where the fields are depleting. Eventually, BP has redirected its focus to more profitable projects across the world. Investors should know that the latest agreement to divest Alaska operations is part of the company’s $10-billion asset divestment program in 2019 and 2020.
With the sale of BP’s Alaskan business, other major companies reportedly may also follow suit. Notably, among the leading energy players that still operate in Alaska is Exxon Mobil Corporation (XOM - Free Report) .
World Fuel beat the Zacks Consensus Estimate the prior four quarters, the average positive earnings surprise being 16.4%.
Delek Logistics is likely to see earnings growth of 4.9% through 2019.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP Signs $5.6B Agreement to Exit Alaska After 60 Long Years
BP plc (BP - Free Report) announced that it has signed an accord with Hilcorp Energy Co. to divest all its assets in Alaska. The transaction has been valued at $5.6 billion. With the deal's closure by 2020, awaiting approvals from the state and federal bodies, BP will exit Alaskan operations after 60 long years.
Deal Motives
Precisely, the assets to be divested entails BP’s entire upstream and midstream operations in Alaska. This includes the British energy giant’s stake in the Prudhoe Bay — the largest oil field in North America — and the Trans-Alaska Pipeline System — spreading over 800 miles and transporting oil to the Port of Valdez.
Investors should know that in the short term, BP will be getting $4 billion of the total transaction value. The company will receive the additional $1.6 billion once the buyer attains certain financial goals from this asset.
Previously, Alaska was competing with some OPEC members, when the U.S. state pumped crude volumes at a rate of two million barrels every day. However, Alaska has lost its appeal and is presently the sixth largest oil-producing state in the United States.
Overall, the U.S. shale plays that have been gaining prominence following the surge in oil production, backed by fracking, has snatched the limelight from Alaska, where the fields are depleting. Eventually, BP has redirected its focus to more profitable projects across the world. Investors should know that the latest agreement to divest Alaska operations is part of the company’s $10-billion asset divestment program in 2019 and 2020.
With the sale of BP’s Alaskan business, other major companies reportedly may also follow suit. Notably, among the leading energy players that still operate in Alaska is Exxon Mobil Corporation (XOM - Free Report) .
Zacks Rank & Key Picks
BP currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include World Fuel Services Corporation and Delek Logistics Partners, L.P. (DKL - Free Report) . Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
World Fuel beat the Zacks Consensus Estimate the prior four quarters, the average positive earnings surprise being 16.4%.
Delek Logistics is likely to see earnings growth of 4.9% through 2019.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>