BP plc (BP Quick QuoteBP - Free Report) recently reported weak first-quarter 2024 earnings. The leading integrated energy player’s earnings per share were 97 cents, while revenues came in at $49.9 billion.

Keep an Eye on the Stock

Since the earnings announcement on May 7, the stock has declined marginally. Despite the weak results, the British energy giant expects its reported and underlying upstream production to be marginally higher this year. Also, there are key oil and gas projects that are already operational or slated for completion this year and beyond.

The positive developments in the upstream business front amid a handsome oil pricing environment may contribute to the company’s bottom line. Notably, crude oil prices are projected to stay strong, primarily due to geopolitical risks and voluntary production cuts by the OPEC+ members.

Unlike many other energy companies, the British energy giant can sail through periods of low oil prices, banking on its sizable refining and marketing businesses. In the United States, BP has a significant portion of its downstream operations, which are benefiting from the economic reopening.

BP boasts a robust share buyback program, remaining on track to repurchase $3.5 billion in the initial half of this year and a minimum of $14 billion through 2025. Throughout the predominant period of the past year, the company has consistently offered investors higher dividend yields than the sector, further strengthening the fact that the company is committed to rewarding shareholders.

However, investors should keep in mind the fact that BP’s upstream operations are extremely vulnerable to volatility in oil and gas prices. Also, continued lower contributions from the Gas & Low Carbon Energy business segment are concerning most of the analysts.

Hence, investors should keep a close watch on the stock, which is currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Energy Giants

Exxon Mobil Corporation (XOM Quick QuoteXOM - Free Report) and Chevron Corporation (CVX Quick QuoteCVX - Free Report) are the two integrated energy giants that have also reported first-quarter earnings. While ExxonMobil missed the Zacks Consensus Estimate of earnings for the first quarter, Chevron beat the consensus estimate for the same. 

One of the largest integrated energy firms, Shell plc (SHEL), said that it has once again achieved a quarter marked by robust financial and operational performance. Apart from reducing emissions, Shell is showcasing its strong commitment to generating handsome value for shareholders.