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BP Appears to be a Solid Investment Bet Now: Here's Why
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BP plc (BP - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The stock, currently carrying a Zacks Rank #2 (Buy), is likely to see earnings growth of 138.2% this year.
What's Favoring the Stock?
The price of West Texas Intermediate crude is trading over the $75-per-barrel mark, highlighting a handsome commodity pricing environment. The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. The company stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects had been delivered.
BP is expected to gain from the refining business. The integrated energy player has a significant portion of its refining capacities in the United States. In the country, the company operates as feedstock-advantaged and sophisticated refineries. The refineries are connected to strong logistics and fuel infrastructure. Thus, with a considerable presence in the United States, the energy major is well placed to capitalize on the solid fuel demand, backed by the reopening of the economy and wider distribution of vaccines.
BP is strongly focused on returning capital to shareholders. The integrated player recently announced that it is planning to repurchase $2.5 billion in shares before declaring results for the December quarter.
To make its operations more stable, Phillips 66 is giving more attention to midstream (pipelines), renewables and chemicals businesses. It also has strong refining operations.
Precision Drilling is a well-known name in the energy space for offering its clients access to an extensive fleet of Super Series drilling rigs. Its services also include offering well service rigs. With high commodity prices, demand for PDS’ drilling rigs is favorable.
NexTier Oilfield Solutionsis also a well-known U.S. land oilfield service player. With higher exploration and production by upstream companies, demand for NexTier Oilfield’s diverse set of well completion and production services is handsome.
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BP Appears to be a Solid Investment Bet Now: Here's Why
BP plc (BP - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The stock, currently carrying a Zacks Rank #2 (Buy), is likely to see earnings growth of 138.2% this year.
What's Favoring the Stock?
The price of West Texas Intermediate crude is trading over the $75-per-barrel mark, highlighting a handsome commodity pricing environment. The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. The company stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects had been delivered.
BP is expected to gain from the refining business. The integrated energy player has a significant portion of its refining capacities in the United States. In the country, the company operates as feedstock-advantaged and sophisticated refineries. The refineries are connected to strong logistics and fuel infrastructure. Thus, with a considerable presence in the United States, the energy major is well placed to capitalize on the solid fuel demand, backed by the reopening of the economy and wider distribution of vaccines.
BP is strongly focused on returning capital to shareholders. The integrated player recently announced that it is planning to repurchase $2.5 billion in shares before declaring results for the December quarter.
Other Stocks to Consider
Other top-ranked players in the energy space include Phillips 66 (PSX - Free Report) , Precision Drilling Corporation (PDS - Free Report) and NexTier Oilfield Solutions Inc. . All the stocks carry a Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
To make its operations more stable, Phillips 66 is giving more attention to midstream (pipelines), renewables and chemicals businesses. It also has strong refining operations.
Precision Drilling is a well-known name in the energy space for offering its clients access to an extensive fleet of Super Series drilling rigs. Its services also include offering well service rigs. With high commodity prices, demand for PDS’ drilling rigs is favorable.
NexTier Oilfield Solutionsis also a well-known U.S. land oilfield service player. With higher exploration and production by upstream companies, demand for NexTier Oilfield’s diverse set of well completion and production services is handsome.