BP Settles U.S. Gas Market Manipulation Case for $10.7M
BP plc BP agreed to pay a civil penalty of $10.75 million, which is less than what it had previously paid in the case to settle claims that its traders had manipulated natural gas markets in 2008, reported Reuters, referring to a filing by the U.S. Federal Energy Regulatory Commission.
BP allegedly violated the Natural Gas Act by manipulating the next-day gas market at Houston Ship Channel in September, October and November of 2008.
Although the company voluntarily disgorged $250,000 of unjust profits in January 2021 and paid a $24.35 million civil penalty in December 2020, it did so under protest. BP appealed the case to the Fifth U.S. Circuit Court of Appeals, which returned the case to FERC for reassessment of the civil penalty.
According to FERC, although the dispute has been resolved by the settlement, it would not object if BP files a claim in the U.S. Court of Federal Claims to recoup any excess payment.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs.
EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream.
NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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