BP Raises 2030 EBITDA Guidance, Reiterates Capex Outlook
BP plc BP increased its projected core earnings by an additional $2 billion for 2030.
The company expects group earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $53-$58 billion, assuming an oil price of $70 per barrel. Approximately $10-$12 billion of the group target is attributed to transition growth engines.
The upward revision in guidance is a result of an improved EBITDA projection for resilient hydrocarbons, which is anticipated to be $41-$44 billion, surpassing the previous estimate of $39-$42 billion. BP kept its 2025 guidance of $46-$49 billion in group EBITDA unchanged.
The company has also retained its capital expenditure targets for 2025 and 2030. BP anticipates a capital expenditure of $16-$18 billion for 2025 and 2030.
BP's strategy, financial framework and commitment to achieving net-zero emissions remain unaltered. It continues to prioritize the safe and disciplined execution of its strategy quarter by quarter in order to meet its 2025 and 2030 goals.
The company aims to attain carbon neutrality by 2050, accompanied by substantial investments in renewable and low-carbon energy sources. In February, BP adjusted its previous target for reducing oil and gas production by 2030, lowering it to 25% from the initially planned 40% reduction from the 2019 levels.
The recent investor event led by interim CEO Murray Auchincloss marked his first significant public appearance since taking over the top position at BP, following the sudden departure of former CEO Bernard Looney last month.
Zacks Rank & Stocks to Consider
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources Company MTDR is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Matador Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for MTDR’s 2023 and 2024 earnings per share is pegged at $6.40 and $8.64, respectively.
Pioneer Natural Resources Company PXD is an explorer and producer of oil, natural gas and natural gas liquid. The upstream energy player’s debt to capitalization has been persistently lower than the industry over the past few years, reflecting considerably lower debt exposure.
Pioneer has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for PXD’s 2023 and 2024 earnings per share is pinned at $21.42 and $25.27, respectively.
SM Energy Company SM is an independent oil and gas company that explores, exploits, develops, acquires, and produces oil and gas in North America. SM's strong cash generation places it in a better financial position, allowing for investments in dividends, debt reduction and future growth.
SM Energy has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for SM’s 2023 and 2024 earnings per share is pegged at $5.79 and $7.03, respectively.
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BP p.l.c. (BP) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
