U.S. Markets open in 7 hrs 46 mins

BP Reportedly Commences $3B Onshore Asset Divestment in US

Zacks Equity Research

BP plc BP has commenced its divestment program for onshore oil and natural gas properties in the United States, per Reuters.

The source added that the asset sale will likely fetch the British energy giant more than $3 billion. The proceeds are expected to be utilized to partly finance the recent purchase of other U.S. resources from BHP Billiton Limited BHP.

BP is currently focusing on prolific resources in the United States like Permian basin and Eagle Ford shale play. The integrated energy player’s intention to boost production from both the resources is justified despite the oil pricing scenario being presently low — West Texas Intermediate (WTI) crude trading below $50 a barrel. This is because the break-even oil prices of both Permian basin and Eagle Ford are below $30 a barrel, per a presentation by Pioneer Natural Resources Company (PXD).

Investors should know that despite being an integrated energy player, BP generates a significant part of its earnings from upstream businesses. In fact, the company has been banking on a strong portfolio of upstream projects that are expected to fetch significant cash flow. Since 2016, BP has brought 19 key upstream projects online. All the key projects BP have been delivering over the years backed the company’s record production levels.

BP p.l.c. Price


BP p.l.c. Price | BP p.l.c. Quote

Presently, BP carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Cabot Oil & Gas Corporation COG and Unit Corporation UNT. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Cabot will likely post earnings growth of 113.2% and 59.9% through 2018 and 2019, respectively.

Unit Corp surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BHP Billiton Limited (BHP) : Free Stock Analysis Report
Unit Corporation (UNT) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Cabot Oil & Gas Corporation (COG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research