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Zacks' 7 Best Strong Buy Stocks (New Research Report)
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predicting the 7 stocks that will soar highest in the coming month.
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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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Here's Why Retain Strategy is Apt for BP Stock Right Now
BP plc (BP - Free Report) , a leading integrated energy company, has witnessed no earnings estimate revisions for 2024 and 2025 in the past seven days.
What's Favoring BP Stock?
West Texas Intermediate crude prices trading at more than $75 per barrel are proving highly advantageous for BP’s exploration and production endeavors. The energy giant boasts a robust pipeline of significant upstream projects, either operational or set to commence activities this year and beyond.
Furthermore, BP is at the forefront of the energy transition movement, aiming to achieve net-zero emissions by 2050 or sooner. The integrated company is committed to expanding its renewable energy capacity to 20 gigawatts by 2025.
The company, carrying a Zacks Rank #3 (Hold), demonstrates robust involvement in refining and marketing sectors, offering resilience during business disruptions and periods of depressed oil prices. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Risks to BP’s Business
Having a strong presence in the upstream energy space, the company’s exploration and production operations are exposed to volatility in oil and natural gas prices. Major exploration and production players that are also exposed to commodity price volatility are ConocoPhillips (COP - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - Free Report) .
ConocoPhillips has secured a solid production outlook thanks to its decades of drilling inventories across its low-cost and diversified upstream asset base. The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, the Permian Basin and Bakken shale.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company will likely continue witnessing increased production volumes.
Matador Resources recently entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, the company is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis.