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BP Tops on Q1 Earnings, Plans to Repurchase $1.75B Shares
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BP plc (BP - Free Report) reported first-quarter 2023 adjusted earnings of $1.66 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.33 per share but declined from the $1.92 reported a year ago.
Total quarterly revenues of $56,951 million missed the Zacks Consensus Estimate of $57,475 million. However, the top line increased from $51,220 million in the year-ago quarter.
Better-than-expected quarterly earnings resulted from an increase in oil-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices and a decline in refinery throughputs.
BP announced plans to execute a $1.75-billion share buyback program, which is expected to be completed before its second-quarter results.
Operational Performance
Oil Production & Operations:
For the first quarter, BP reported total production of 1,360 thousand barrels of oil-equivalent per day (MBoe/d), up from 1,286 MBoe/d in the year-ago quarter.
BP sold liquids at $71.63 a barrel in the first quarter compared with $83.47 in the prior-year period. It sold natural gas at $6.57 per thousand cubic feet compared with $9.55 in the year-ago quarter. Overall hydrocarbon price realization declined to $62.36 per Boe from $76.85.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3,319 million. The figure declined from earnings of $4,683 million in the year-ago quarter. Lower commodity price realizations primarily caused the downside.
Gas & Low Carbon Energy:
Segmental profits totaled $3,456 million, declining from $3,595 million in the year-ago quarter, primarily due to lower liquid and gas prices.
In the first quarter, the total production of 969 MBoe/d increased from 966 MBoe/d in the year-ago quarter.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2,759 million, up substantially from $2,156 million in the year-ago quarter. A significant improvement in refining marker margin aided the segment.
BP-operated refining availability in the March-end quarter was 96.1%, reflecting an increase from 95% in the year-ago quarter. Total refinery throughputs from the first quarter were 1,518 thousand barrels per day (MBbl/D), down from 1,650 MBbl/D.
Capex
Organic capital expenditure in the reported quarter was $3,495 million. The company reported total capital spending of $3,625 million for the quarter.
Financials
BP's net debt was $21,232 million at the end of the first quarter. Also, the firm announced that its gearing was 19.6%.
Outlook
BP expects upstream production to be lower sequentially in the second quarter. Also, the company anticipates industry refining margins to be lower sequentially due to weaker middle distillate margins.
For this year, the British energy giant forecast both reported and underlying upstream production to be unchanged from the prior year. BP revealed the capital expenditure guidance of $16-$18 billion for this year.
Earnings Snapshot of Other Integrated Energy Companies
Exxon Mobil Corporation's (XOM - Free Report) first-quarter 2023 earnings per share of $2.83 (excluding identified items) beat the Zacks Consensus Estimate of $2.65.
At the end of first-quarter 2023, ExxonMobil’s total cash and cash equivalents were $32,651 million, and long-term debt amounted to $39,150 million. The firm has significantly lower debt exposure as compared to other integrated majors. Also, ExxonMobil announced the expansion of its share repurchase program up to $50 billion through 2024.
TotalEnergies SE (TTE - Free Report) reported first-quarter 2023 operating earnings of $2.61 (€2.43) per share, beating the Zacks Consensus Estimate of $2.43 per share.
TotalEnergies expects to invest $16 billion in 2023, of which $5 billion will be allocated to further strengthening renewable operations and electricity. TTE aims to repurchase stocks worth $2 billion in the second quarter, which will further boost shareholders’ value.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter 2023 earnings per share of $3.55, surpassing the Zacks Consensus Estimate of $3.36 per share.
As of Dec 31, the San Ramon, CA-based company had $15.7 billion in cash and cash equivalents, and a total debt of $23.2 billion, with a debt-to-total capitalization of 12.7%. Compared with composite stocks belonging to the industry, Chevron has significantly lower exposure to debt capital.
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BP Tops on Q1 Earnings, Plans to Repurchase $1.75B Shares
BP plc (BP - Free Report) reported first-quarter 2023 adjusted earnings of $1.66 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.33 per share but declined from the $1.92 reported a year ago.
Total quarterly revenues of $56,951 million missed the Zacks Consensus Estimate of $57,475 million. However, the top line increased from $51,220 million in the year-ago quarter.
Better-than-expected quarterly earnings resulted from an increase in oil-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices and a decline in refinery throughputs.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
Share Repurchases
BP announced plans to execute a $1.75-billion share buyback program, which is expected to be completed before its second-quarter results.
Operational Performance
Oil Production & Operations:
For the first quarter, BP reported total production of 1,360 thousand barrels of oil-equivalent per day (MBoe/d), up from 1,286 MBoe/d in the year-ago quarter.
BP sold liquids at $71.63 a barrel in the first quarter compared with $83.47 in the prior-year period. It sold natural gas at $6.57 per thousand cubic feet compared with $9.55 in the year-ago quarter. Overall hydrocarbon price realization declined to $62.36 per Boe from $76.85.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3,319 million. The figure declined from earnings of $4,683 million in the year-ago quarter. Lower commodity price realizations primarily caused the downside.
Gas & Low Carbon Energy:
Segmental profits totaled $3,456 million, declining from $3,595 million in the year-ago quarter, primarily due to lower liquid and gas prices.
In the first quarter, the total production of 969 MBoe/d increased from 966 MBoe/d in the year-ago quarter.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2,759 million, up substantially from $2,156 million in the year-ago quarter. A significant improvement in refining marker margin aided the segment.
BP-operated refining availability in the March-end quarter was 96.1%, reflecting an increase from 95% in the year-ago quarter. Total refinery throughputs from the first quarter were 1,518 thousand barrels per day (MBbl/D), down from 1,650 MBbl/D.
Capex
Organic capital expenditure in the reported quarter was $3,495 million. The company reported total capital spending of $3,625 million for the quarter.
Financials
BP's net debt was $21,232 million at the end of the first quarter. Also, the firm announced that its gearing was 19.6%.
Outlook
BP expects upstream production to be lower sequentially in the second quarter. Also, the company anticipates industry refining margins to be lower sequentially due to weaker middle distillate margins.
For this year, the British energy giant forecast both reported and underlying upstream production to be unchanged from the prior year. BP revealed the capital expenditure guidance of $16-$18 billion for this year.
Zacks Rank
BP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Other Integrated Energy Companies
Exxon Mobil Corporation's (XOM - Free Report) first-quarter 2023 earnings per share of $2.83 (excluding identified items) beat the Zacks Consensus Estimate of $2.65.
At the end of first-quarter 2023, ExxonMobil’s total cash and cash equivalents were $32,651 million, and long-term debt amounted to $39,150 million. The firm has significantly lower debt exposure as compared to other integrated majors. Also, ExxonMobil announced the expansion of its share repurchase program up to $50 billion through 2024.
TotalEnergies SE (TTE - Free Report) reported first-quarter 2023 operating earnings of $2.61 (€2.43) per share, beating the Zacks Consensus Estimate of $2.43 per share.
TotalEnergies expects to invest $16 billion in 2023, of which $5 billion will be allocated to further strengthening renewable operations and electricity. TTE aims to repurchase stocks worth $2 billion in the second quarter, which will further boost shareholders’ value.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter 2023 earnings per share of $3.55, surpassing the Zacks Consensus Estimate of $3.36 per share.
As of Dec 31, the San Ramon, CA-based company had $15.7 billion in cash and cash equivalents, and a total debt of $23.2 billion, with a debt-to-total capitalization of 12.7%. Compared with composite stocks belonging to the industry, Chevron has significantly lower exposure to debt capital.