BP (NYSE:BP) had a couple of analysts express concern over the performance of the company in 2012, pressuring the stock in early trading.
Jefferies (NYSE:JEF) said the oil giant is unlikely to boost production before 2014, which will probably mean earnings estimates will be lower than projected. They also cited higher tax rates and charges as another factor in the earnings performance of BP.
Consequently, Jefferies cut its earnings estimate on BP from $1.24 a share to $1.20 a share. For 2013, it raised its EPS estimate from 94 cents a share to 95 cents a share. Even so, the brokerage reiterated its "Buy" rating on the energy company.
Societe Generale downgraded BP on Wednesday from a "Buy" rating to a "Hold" rating, citing uncertainties surrounding legal liabilities as the Macondo trial date of February 27 approaches.
"The key risk is the start of the Macondo trial on February 27. The impossibility of 'calling' the legal outcome, leads us tactically to a hold rating, following a year of outperformance," the analysts said.
Societe Generale also noted that BP will be the last entity to offer its evidence, meaning the news cycle will probably be negative in the early part of the trial, suggesting pressure on the stock.
Possibly in anticipation of this, BP boosted its dividend to a quarterly rate of 8 cents a share after a solid quarter, where the earnings of the company rose to $7.69 billion on revenue of $96.3 billion.
BP was trading at $46.59, falling $0.01, or 0.02 percent, as of 11:10 AM EST.
Showing posts with label BP Dividend. Show all posts
Showing posts with label BP Dividend. Show all posts
Wednesday, February 8, 2012
Thursday, November 4, 2010
Goldman (NYSE:GS) Shows BP (NYSE:BP) Some Love, Upgrades them to "Buy"
After generating results beyond expectations, BP plc (NYSE:BP) was upgraded today by Goldman Sachs (NYSE:GS) from "Neutral" to "Buy" on the stronger-than-expected quarter and valuation.
Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.
There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.
That puts them in a more predictable light, which makes shareholders and investors less nervous.
Goldman also likes that BP raised their earnings per share estimates for the next three years.
Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.
Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.
BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.
Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.
There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.
That puts them in a more predictable light, which makes shareholders and investors less nervous.
Goldman also likes that BP raised their earnings per share estimates for the next three years.
Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.
Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.
BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.
Monday, November 1, 2010
BP's (NYSE:BP) Earnings Should Mirror Last Year
Earnings for the quarter by BP (NYSE:BP), expected to be released November 2, on average look to come in at close to where they did last year, when they were $1.50 a share.
Analysts have a $0.15 spread on the earnings, coming in as low as $1.44 share to as high as $1.59 a share. If it meets somewhere in the middle, it'll be very close to last year's performance. Not bad considering the challenges they face.
Consensus this quarter is at $1.51 a share on revenue of $72.46 billion.
Shareholders have been pressing new CEO Bob Dudley and the board of directors to reinstate the dividend.
Analysts have a $0.15 spread on the earnings, coming in as low as $1.44 share to as high as $1.59 a share. If it meets somewhere in the middle, it'll be very close to last year's performance. Not bad considering the challenges they face.
Consensus this quarter is at $1.51 a share on revenue of $72.46 billion.
Shareholders have been pressing new CEO Bob Dudley and the board of directors to reinstate the dividend.
Monday, October 25, 2010
BP (NYSE:BP) Takeover Speculation and the Dividend
Mounting pressure on BP's (NYSE:BP) Bob Dudley to reinstate the dividend says something about the way shareholders view the company, and if they believe the management has confidence going forward.
Continuing speculation the company could be ripe for a takeover isn't without some justification, as numerous elements remain in place that haven't been resolved, and make it difficult, if not impossible, to bring the dividend back.
From the point of view of BP shareholders, they can't understand the numerous variables involved in the underlying reasons behind decision-making at BP, but one thing almost all shareholders understand, no matter what company of sector they're in, is if they increase the dividend or have a dividend, the company has confidence in its future prospects.
For that reason, if BP is able to, they will reinstate the dividend as soon as possible. If not, they could be announcing to their shareholders and competitors they're on the auction block.
In the near future, shareholders don't have to understand the complexities surrounding the fallout coming from the Gulf disaster, all they have to do is wait to see if the dividend is reinstated.
If it isn't, BP is saying through their action, or rather, non-action, they have no confidence at the time for the prospects of the company. If they do that for too many quarters, shareholders will start to flee the company, especially large institutional investors, and BP will have little, if any, defense against being taken over by a larger rival.
The only other option would probably be to split the company up.
Shareholders are getting impatient, and CEO Bob Dudley, and the board of directors, if at all possible, need to get the dividend reinstated asap.
Continuing speculation the company could be ripe for a takeover isn't without some justification, as numerous elements remain in place that haven't been resolved, and make it difficult, if not impossible, to bring the dividend back.
From the point of view of BP shareholders, they can't understand the numerous variables involved in the underlying reasons behind decision-making at BP, but one thing almost all shareholders understand, no matter what company of sector they're in, is if they increase the dividend or have a dividend, the company has confidence in its future prospects.
For that reason, if BP is able to, they will reinstate the dividend as soon as possible. If not, they could be announcing to their shareholders and competitors they're on the auction block.
In the near future, shareholders don't have to understand the complexities surrounding the fallout coming from the Gulf disaster, all they have to do is wait to see if the dividend is reinstated.
If it isn't, BP is saying through their action, or rather, non-action, they have no confidence at the time for the prospects of the company. If they do that for too many quarters, shareholders will start to flee the company, especially large institutional investors, and BP will have little, if any, defense against being taken over by a larger rival.
The only other option would probably be to split the company up.
Shareholders are getting impatient, and CEO Bob Dudley, and the board of directors, if at all possible, need to get the dividend reinstated asap.
BP (NYSE:BP) Needs These 5 Things to Happen to Resume Growth
Although there have been some foreign deals forged and implemented by BP (NYSE:BP), which is good news for them and their shareholders, they're still, for the most part, in a holding mold until four major things are handled and resolved.
Only one of the four things needed to be done are under the direct control of BP, and that is the divesting of parts of the company to raise capital to pay for liabilities associated with the Gulf of Mexico oil spill.
The other three things that need to happen are the completed examination of the blowout preventer, determination of whether or not they are found in gross negligence over the accident, and how much, if any, shared liability with partners they'll participate in.
The last thing, which will be mostly determined by the four mentioned above, is the reinstatement of the dividend by BP.
As far as the blowout preventer, that will probably take longer than the rest, and is just starting the process of examination. It's important in whether or not Cameron International, which developed it, will be liable for part of the costs of the spill.
In the largest liability remaining to be determined, BP is awaiting the decision on whether or not they're going to be designated as being grossly negligent in the ordeal. If they are, it could cost them over $17 billion more in fines, above and beyond all existing and future payouts.
That also is connected to the next element, which is shared liability. If they aren't found grossly negligent, their partners in the Macondo well: Anadarko (NYSE:APC) and MOEX, via their majority owned Mitsui (Nasdaq:MITSY), would have to pay out some significant capital for their part in the failure.
Selling of their assets, as mentioned, is under the control of BP, and that will give shareholders and potential investors more confidence in the company, which would ultimately be crowned with the reinstatement of their dividend, which mounting pressure is being asserted on the company to do.
If and when all these happened and/or are concluded, we'll see a much clearer picture of the future of BP, which remains tenuous at best.
Depending on the outcomes of the mentioned events that need to happen, will determine whether BP will be split up or taken over by a larger competitor, or continue on as a leaner but competitive energy firm.
Only one of the four things needed to be done are under the direct control of BP, and that is the divesting of parts of the company to raise capital to pay for liabilities associated with the Gulf of Mexico oil spill.
The other three things that need to happen are the completed examination of the blowout preventer, determination of whether or not they are found in gross negligence over the accident, and how much, if any, shared liability with partners they'll participate in.
The last thing, which will be mostly determined by the four mentioned above, is the reinstatement of the dividend by BP.
As far as the blowout preventer, that will probably take longer than the rest, and is just starting the process of examination. It's important in whether or not Cameron International, which developed it, will be liable for part of the costs of the spill.
In the largest liability remaining to be determined, BP is awaiting the decision on whether or not they're going to be designated as being grossly negligent in the ordeal. If they are, it could cost them over $17 billion more in fines, above and beyond all existing and future payouts.
That also is connected to the next element, which is shared liability. If they aren't found grossly negligent, their partners in the Macondo well: Anadarko (NYSE:APC) and MOEX, via their majority owned Mitsui (Nasdaq:MITSY), would have to pay out some significant capital for their part in the failure.
Selling of their assets, as mentioned, is under the control of BP, and that will give shareholders and potential investors more confidence in the company, which would ultimately be crowned with the reinstatement of their dividend, which mounting pressure is being asserted on the company to do.
If and when all these happened and/or are concluded, we'll see a much clearer picture of the future of BP, which remains tenuous at best.
Depending on the outcomes of the mentioned events that need to happen, will determine whether BP will be split up or taken over by a larger competitor, or continue on as a leaner but competitive energy firm.
Pressure Rising to Restore BP's (NYSE:BP) Dividend
BP (NYSE:BP) CEO Bob Dudley is under increasing pressure to restore the dividend of BP, as rivals increase their margin of growth over the oil giant.
This of course must include the increase of the share price of BP in the aftermath of the Gulf oil spill, and the remaining uncertainties as to the level of liability BP will face.
The major unknown continues to be whether BP will be designated as being grossly negligent in the circumstances. At stake is billions in liability.
One major reason for the pressure to restore the dividend is to call the bluff of the company at to their confidence going forward. A dividend is one of those elements confirming the confidence of management concerning the future of a company.
If the dividend isn't restored, shareholders will probably flee the company, opening them up to being taken over, as some rumors have already been circulating about.
This of course must include the increase of the share price of BP in the aftermath of the Gulf oil spill, and the remaining uncertainties as to the level of liability BP will face.
The major unknown continues to be whether BP will be designated as being grossly negligent in the circumstances. At stake is billions in liability.
One major reason for the pressure to restore the dividend is to call the bluff of the company at to their confidence going forward. A dividend is one of those elements confirming the confidence of management concerning the future of a company.
If the dividend isn't restored, shareholders will probably flee the company, opening them up to being taken over, as some rumors have already been circulating about.
Tuesday, October 5, 2010
Bond Market Likes BP's (NYSE:BP) Bonds, Future
Now that a clearer picture of the liabilities concerning the BP (NYSE:BP) oil crisis has emerged, and things are beginning to settle down for the oil giant, raising capital through bonds has revealed the markets like what they see for the future of the company, and have been snapping up the two bond offerings of the company over the last week.
With bankruptcy appearing to be a non-event going forward, a lot of positive sentiment from the market is now lingering over the company.
This is a global phenomenon, as measured by who has invested in the bonds, as they're from all parts of the world. The $6 billion invested in the bonds sends a clarion consensus that the market believes BP will remain solvent.
It wasn't just that though, as the bonds were highly oversubscribed, suggesting there's a lot of confidence in the future of BP by investors.
In the first offering of $3.5 billion last week, approximately $12 billion in orders were made, giving an idea of the demand for BP debt. On Monday the sale of bonds generated over four times oversubscription.
The conclusion being made by the actions of the market are while the liabilities of BP are enormous, they're more than big enough to pay for them.
One remaining huge factor for BP is whether or not they're designated as grossly negligent concerning the oil spill. If they aren't, at most they would pay a fine of about $4.5 billion. If they are found grossly negligent, that would soar to $17.5 billion. They're in the midst of negotiations with the U.S. government at this time concerning that.
But the billions raised through selling assets, issuing bonds, bank credit lines and the suspension of their dividend has the bond market believing BP can handle whatever comes their way.
With bankruptcy appearing to be a non-event going forward, a lot of positive sentiment from the market is now lingering over the company.
This is a global phenomenon, as measured by who has invested in the bonds, as they're from all parts of the world. The $6 billion invested in the bonds sends a clarion consensus that the market believes BP will remain solvent.
It wasn't just that though, as the bonds were highly oversubscribed, suggesting there's a lot of confidence in the future of BP by investors.
In the first offering of $3.5 billion last week, approximately $12 billion in orders were made, giving an idea of the demand for BP debt. On Monday the sale of bonds generated over four times oversubscription.
The conclusion being made by the actions of the market are while the liabilities of BP are enormous, they're more than big enough to pay for them.
One remaining huge factor for BP is whether or not they're designated as grossly negligent concerning the oil spill. If they aren't, at most they would pay a fine of about $4.5 billion. If they are found grossly negligent, that would soar to $17.5 billion. They're in the midst of negotiations with the U.S. government at this time concerning that.
But the billions raised through selling assets, issuing bonds, bank credit lines and the suspension of their dividend has the bond market believing BP can handle whatever comes their way.
Friday, October 1, 2010
BP (NYSE:BP) Offers Gulf Assets as Collateral for Escrow Fund
BP (NYSE:BP) said today its assets in the Gulf of Mexico will used as collateral for the $20 billion escrow fund set aside to pay for claims.
The total costs for the oil giant so far are $11.2 billion, with $806 million paid out in over 44,000 claims from businesses and individuals hurt from the oil spill.
Part of the collateral for the fund will include royalty interest from oil and gas production from projects in the region, including Na Kika, Mars, Mad Dog and Thunder Horse, among others.
Lamar McKay, chairman and president of BP America Inc. said, “The pledging of these assets underscores our commitments to the trust which we set up to pay all legitimate claims arising from the tragedy.”
The assets were offered as collateral because of the uncertainty of oil prices holding strong. New CEO Bob Dudley said if oil prices hold, the company should continue to perform strongly and shouldn't have any problems meeting obligations.
If oil prices do fall, the collateral would be in place to back up any shortfall.
Dudley is confident enough to believe there shouldn't be a problem in bringing the dividend back to shareholders soon, although that is a decision of the board of directors of the company.
The total costs for the oil giant so far are $11.2 billion, with $806 million paid out in over 44,000 claims from businesses and individuals hurt from the oil spill.
Part of the collateral for the fund will include royalty interest from oil and gas production from projects in the region, including Na Kika, Mars, Mad Dog and Thunder Horse, among others.
Lamar McKay, chairman and president of BP America Inc. said, “The pledging of these assets underscores our commitments to the trust which we set up to pay all legitimate claims arising from the tragedy.”
The assets were offered as collateral because of the uncertainty of oil prices holding strong. New CEO Bob Dudley said if oil prices hold, the company should continue to perform strongly and shouldn't have any problems meeting obligations.
If oil prices do fall, the collateral would be in place to back up any shortfall.
Dudley is confident enough to believe there shouldn't be a problem in bringing the dividend back to shareholders soon, although that is a decision of the board of directors of the company.
Wednesday, September 15, 2010
BP (NYSE:BP) Dividend Wasn't Dropped because of US Influence Says Hayward
In what may of been the cause of the most intense strain between the Obama administration and the UK during the BP oil spill - the dropping of the dividend - outgoing CEO Tony Hayward was pressed by UK lawmakers if the decision to suspend the dividend came because of pressure from the U.S.
Hayward said that wasn't the case, saying the “decision to suspend the dividend was taken by the board,” adding it was “taken in the interest of preserving the financial strength of BP and in the interests of shareholders.”
It caused an outcry by shareholder in the UK, whose holdings in BP were the largest in relationship to their pensions. Just about as many in the U.S. also counted on the share value and dividends in BP, which resulted in lawsuits from some U.S. pensions.
Committee Chairman Tim Yeo said before the hearing that he wanted to find out if there was more political risk by continuing operations in the U.S. He added in a phone interview yesterday that the U.S. had partaken in a "bit of a witch hunt" toward the oil giant.
Hayward said that wasn't the case, saying the “decision to suspend the dividend was taken by the board,” adding it was “taken in the interest of preserving the financial strength of BP and in the interests of shareholders.”
It caused an outcry by shareholder in the UK, whose holdings in BP were the largest in relationship to their pensions. Just about as many in the U.S. also counted on the share value and dividends in BP, which resulted in lawsuits from some U.S. pensions.
Committee Chairman Tim Yeo said before the hearing that he wanted to find out if there was more political risk by continuing operations in the U.S. He added in a phone interview yesterday that the U.S. had partaken in a "bit of a witch hunt" toward the oil giant.
Wednesday, July 7, 2010
BP (NYSE:BP) Shares Soar on Rejection of Issuing New Stock
Shareholders were holding their breath concerning whether or not BP (NYSE:BP) was going go the route of issuing new stock to raise more capital.
BP shot that idea down quick, as jittery shareholders may have bolted the company if they had added diluting the shares they owned on top of eliminating their dividend as well.
Other than selling assets in the company and lining up a number of banks for loans worth about $9 billion in case they need to get quick funding, the other key strategy is to go after sovereign wealth funds, which CEO Tony Hayward has been traveling around the globe trying to do.
BP is of course looking at all types of investment in the stock, as they're trying to get ahead of the game in case someone attempts to acquire them in their weakened state.
The oil giant closed Tuesday's trading session at $31.91 a share, gaining $2.56, or 8.72 percent. Their market cap is just under $100 billion after the surge.
BP shot that idea down quick, as jittery shareholders may have bolted the company if they had added diluting the shares they owned on top of eliminating their dividend as well.
Other than selling assets in the company and lining up a number of banks for loans worth about $9 billion in case they need to get quick funding, the other key strategy is to go after sovereign wealth funds, which CEO Tony Hayward has been traveling around the globe trying to do.
BP is of course looking at all types of investment in the stock, as they're trying to get ahead of the game in case someone attempts to acquire them in their weakened state.
The oil giant closed Tuesday's trading session at $31.91 a share, gaining $2.56, or 8.72 percent. Their market cap is just under $100 billion after the surge.
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