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BP Misses Q1 Earnings Estimates, Expects 2024 Production Hike
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BP plc (BP - Free Report) reported first-quarter 2024 adjusted earnings of 97 cents per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.03 and declined from the $1.66 reported a year ago.
Total quarterly revenues of $50 billion lagged the Zacks Consensus Estimate of $61.8 billion and declined from the $57 billion reported in the year-ago quarter.
Lower realizations of commodity prices primarily led to weak quarterly results.
For the first quarter, BP reported a total production of 1,463 thousand barrels of oil equivalent per day (Mboe/d), up from the 1,360 MBoe/d recorded in the year-ago quarter. The metric also beat our estimate of 1,427.2 MBoe/d.
BP sold liquids at $70.53 per barrel in the first quarter, down from the $71.63 reported in the prior-year period. The reported figure also lagged our estimate of $73.87.
The company sold natural gas at $2.66 per thousand cubic feet, declining from the $6.57 reported in the year-ago quarter and missing our estimate of $3.73.
Overall hydrocarbon price realization declined to $54.11 per Boe from $62.36 and lagged our estimate of $65.75.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3.1 billion. The figure declined from the $3.3 billion recorded in the year-ago quarter. The downside primarily resulted from lower commodity price realizations.
Gas & Low Carbon Energy:
Segmental profits totaled $1.7 billion, significantly down from the $3.5 billion registered in the year-ago quarter primarily due to lower revenue realization, foreign exchange losses from Egyptian pound balances, increased exploration write-offs. The figure also missed our projection of $2.3 billion.
In the first quarter, the total production of 914 MBoe/d declined from 969 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 $1.3 billion, down from $2.8 billion in the year-ago quarter. The figure also missed our projection of $2.1 billion. Lower refining results affected the segment.
BP-operated refining availability in the March-end quarter was 90.4%, indicating a decline from 96.1% in the year-ago quarter.
Total refinery throughputs from the first quarter were 1,355 thousand barrels per day (MBbl/D), down from 1,518 MBbl/D in the corresponding period of 2023. The figure beat our estimate of 1,299.8 MBbl/D.
Capex
Organic capital expenditure in the reported quarter totaled $4 million. The company reported a total capital spending of $4.3 billion for the quarter.
Financials
BP's net debt was $24 billion at the end of the first quarter. Also, the firm announced a gearing of 22% in the first quarter.
Outlook
BP said that its upstream production on a reported basis for the second quarter of 2024 would be marginally lower than that in the first quarter. However, for the entirety of 2024, the company expects both reported and underlying upstream production to slightly exceed the levels recorded in the previous year.
For 2024, BP allocated a capital expenditure budget of $16 billion. The company also anticipates a modest year-over-year increase in its depreciation, depletion and amortization expenses.
BP plans to generate $2-$3 billion from divestments and other financial transactions in 2024. This effort is part of a broader goal to achieve $25 billion in divestments from the second half of 2020 through 2025.
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.43 and $7.35, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.54 and $2.61, respectively.
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BP Misses Q1 Earnings Estimates, Expects 2024 Production Hike
BP plc (BP - Free Report) reported first-quarter 2024 adjusted earnings of 97 cents per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.03 and declined from the $1.66 reported a year ago.
Total quarterly revenues of $50 billion lagged the Zacks Consensus Estimate of $61.8 billion and declined from the $57 billion reported in the year-ago quarter.
Lower realizations of commodity prices primarily led to weak quarterly results.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
Operational Performance
Oil Production & Operations:
For the first quarter, BP reported a total production of 1,463 thousand barrels of oil equivalent per day (Mboe/d), up from the 1,360 MBoe/d recorded in the year-ago quarter. The metric also beat our estimate of 1,427.2 MBoe/d.
BP sold liquids at $70.53 per barrel in the first quarter, down from the $71.63 reported in the prior-year period. The reported figure also lagged our estimate of $73.87.
The company sold natural gas at $2.66 per thousand cubic feet, declining from the $6.57 reported in the year-ago quarter and missing our estimate of $3.73.
Overall hydrocarbon price realization declined to $54.11 per Boe from $62.36 and lagged our estimate of $65.75.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $3.1 billion. The figure declined from the $3.3 billion recorded in the year-ago quarter. The downside primarily resulted from lower commodity price realizations.
Gas & Low Carbon Energy:
Segmental profits totaled $1.7 billion, significantly down from the $3.5 billion registered in the year-ago quarter primarily due to lower revenue realization, foreign exchange losses from Egyptian pound balances, increased exploration write-offs. The figure also missed our projection of $2.3 billion.
In the first quarter, the total production of 914 MBoe/d declined from 969 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 $1.3 billion, down from $2.8 billion in the year-ago quarter. The figure also missed our projection of $2.1 billion. Lower refining results affected the segment.
BP-operated refining availability in the March-end quarter was 90.4%, indicating a decline from 96.1% in the year-ago quarter.
Total refinery throughputs from the first quarter were 1,355 thousand barrels per day (MBbl/D), down from 1,518 MBbl/D in the corresponding period of 2023. The figure beat our estimate of 1,299.8 MBbl/D.
Capex
Organic capital expenditure in the reported quarter totaled $4 million. The company reported a total capital spending of $4.3 billion for the quarter.
Financials
BP's net debt was $24 billion at the end of the first quarter. Also, the firm announced a gearing of 22% in the first quarter.
Outlook
BP said that its upstream production on a reported basis for the second quarter of 2024 would be marginally lower than that in the first quarter. However, for the entirety of 2024, the company expects both reported and underlying upstream production to slightly exceed the levels recorded in the previous year.
For 2024, BP allocated a capital expenditure budget of $16 billion. The company also anticipates a modest year-over-year increase in its depreciation, depletion and amortization expenses.
BP plans to generate $2-$3 billion from divestments and other financial transactions in 2024. This effort is part of a broader goal to achieve $25 billion in divestments from the second half of 2020 through 2025.
Zacks Rank & Stocks to Consider
BP currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following company that presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.43 and $7.35, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.54 and $2.61, respectively.