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Here's Why You Should Hold BP Stock in Your Portfolio Now
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The Zacks Consensus Estimate for BP plc’s (BP - Free Report) earnings for 2023 and 2024 is pegged at $6.05 and $6.08 per share, respectively, unchanged over the past seven days.
What's Favoring the Stock?
The price of West Texas Intermediate crude is trading over the $65-per-barrel mark, still highlighting a favorable commodity pricing environment, which could aid BP’s upstream operations. 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 is employing 60% of the 2023 surplus cashflow for repurchasing shares. This commitment will be fulfilled if BP can maintain a solid investment-grade credit rating.
Risks
However, BP’s upstream business is highly exposed to volatility in oil and natural gas prices. Also, the energy giant, carrying a Zacks Rank #3 (Hold), expects June quarter upstream production to be lower sequentially.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.
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Here's Why You Should Hold BP Stock in Your Portfolio Now
The Zacks Consensus Estimate for BP plc’s (BP - Free Report) earnings for 2023 and 2024 is pegged at $6.05 and $6.08 per share, respectively, unchanged over the past seven days.
What's Favoring the Stock?
The price of West Texas Intermediate crude is trading over the $65-per-barrel mark, still highlighting a favorable commodity pricing environment, which could aid BP’s upstream operations. 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 is employing 60% of the 2023 surplus cashflow for repurchasing shares. This commitment will be fulfilled if BP can maintain a solid investment-grade credit rating.
Risks
However, BP’s upstream business is highly exposed to volatility in oil and natural gas prices. Also, the energy giant, carrying a Zacks Rank #3 (Hold), expects June quarter upstream production to be lower sequentially.
Stocks to Consider
Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Global PartnersLP (GLP - Free Report) and PHX MINERALS INC. (PHX - Free Report) . While Evolution Petroleum and Global Partners sport a Zacks Rank #1 (Strong Buy), PHX MINERALS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.