Member Info for meoryou

Getagrip

“The history book on the shelf it’s always repeating itself”

Think most of John Brownes mergers happened on the golf course.

Perhaps it all awaits the general election,so they only have to deal with one party.

Nothing worse than getting the nod, then changing horses half way and having to start to please a whole new set of politicians.

Https://www.ajbell.co.uk/articles/investmentarticles/275796/key-reasons-why-ftse-100-back-favour-investors

Within the framework of an eight-year offtake agreement, UK-based tyre pyrolysis specialist Circtec will annually supply energy company bp with up to 75,000 tonnes of fuel and feedstock recovered from end-of-life tyres. Circtec will process these tyres at a plant it will set up in The Netherlands. In support of this offtake agreement, bp is providing Circtec a €12.5 million debt finance facility to contribute to the capex for expanding this plant into a commercial-scale operation.

BP plc will continue to pump out “prolific” natural gas volumes from the Haynesville Shale as hedges are in place pricing the supply at around $4.00/Mcf through this year, CEO Murray Auchincloss said Tuesday.

For UBS, however, the main takeaway from the update concerned the company’s confidence in its 2025 earnings guidance, which currently sits 16% above the City consensus.

Reiterating its buy rating, the bank highlighted the potential for earnings and dividend growth and said the valuation looked undemanding at a 10% discount versus peers.

Transaction in Own Shares

BP p.l.c. (the "Company") announces that on 8 May 2024 it has purchased, in accordance with the authority granted by shareholders at the 2024 Annual General Meeting of the Company, a total of 4,581,151 of its ordinary shares of $0.25 each ("Shares") on the London Stock Exchange and Cboe (UK) as part of the buyback programme announced on 7 May 2024 (the "Programme")

Getagrip posted this on the Shell board

“Wael Sawan will not necessarily go down in economic history books as the CEO who did a lot of buybacks, but he will if he takes over/merges with BP - it must be something he is considering!”

My reply basically says they wouldn’t be doing their job right if they are not at least discussing it

Yes I know it’s Barclays,but think we need cheering up after last 34 hours.

BP is a standout in an oil sector that on fundamentals has appeal, according to analysts at Barclays.

Sticking with a share price target of 1000p or double the current market level, the group's unfashionable focus on oil production and cost-cutting are likely to be the catalysts for a share price rally, said analysts at the UK bank

“We continue to see significant value in bp shares as the group adds higher-margin upstream volumes and starts to deliver additional profitability from the low-carbon business.

“The new ambition on costs is both welcome and much needed as the management team aim to close the perception gap.”

'Outperform' is the rating on the shares.

Https://www.theguardian.com/business/nils-pratley-on-finance/article/2024/may/07/bp-right-to-hold-steady-on-climate-targets-despite-below-forecast-profits

Https://www.bp.com/en_us/united-states/home/news/features-and-highlights/3-policies-the-us-needs-to-boost-renewable-natural-gas.html

Getagrip

“Wael Sawan will not necessarily go down in economic history books as the CEO who did a lot of buybacks, but he will if he takes over/merges with BP - it must be something he is considering!”

They must have informally discussed some multiple of BP to Shell that they cannot resist.

And if they haven’t they are not doing their job.

But BP sum of the parts means they can sell off all they don’t want, or need to sell to pay a chunk of the cost

BP did buy back BP Midstream Partners in an all stock deal.( 2022)

But I am sure they used Treasury shares, not ones from the buybacks.

Not that it makes a huge difference as it’s still increasing the number of shares with voting rights which again need purchased back in future.

Https://www.barrons.com/articles/bp-oil-clean-energy-acquisitions-c35ba4d7

My view through my Rose tinted Glasses,

Is that perhaps BP is a restoring Dividend play.

As Happy has highlighted there does seem a high likelihood of a 10% div hike next quarter.

As I said a couple of days ago 3 years of 10% div hike and you are back to pre cut dividend levels.

That’s either one hell,of a yield or a sp near £7.

That enough to keep me invested here.

But that’s okay if it fits your time scale

Jezzoo

Only hope I can give you is the start of the buybacks might help.

Been none for almost a week.

They both seem more at ease this time.

Both clearly know their brief very well.

Very upbeat message.

Clearly see a lot to be happy about going forward to 2025/2026.

Very much like not volume driven ,but driven by cash flow.

Follow the money! Whether it’s traditional oil or convenience or renewables

BP's first-quarter profit was hit by lower oil and gas trading, missing market forecasts, but the British energy company confirmed a $1.75 billion share buyback.

The London-based oil-and-gas giant said Tuesday that underlying replacement-cost profit--a metric similar to net income its U.S. peers report--was $2.72 billion, a marked decline from $4.96 billion in the same quarter last year. This missed a forecast of $2.87 billion, according to a company-compiled estimate from 24 analysts.

WP

From Archea own site

“ Our goal is for Archaea to be a stable, predictable, profitable business, and we seek to remove variability from our financial returns where possible,” said Light. “Our differentiated commercial strategy is focused on selling a targeted 70% of our expected RNG production volumes under long-term, fixed-price contracts with creditworthy counterparties. This enables us to lock in expected double-digit returns in a downside case, looking only at contracted volumes. We take a ‘highest and best use’ approach to remaining production volumes, which today are sold into the transportation market where they can generate renewable identification number [RIN] and/or low-carbon fuel standard [LCFS] credits. We prefer to reduce our exposure to these markets, which can be volatile and have regulatory risk, through our long-term contracting strategy. Additionally, we focus on landfill gas, which is a low-cost, stable, predictable, long-term feedstock, with landfill gas production expected for more than 20 to 30 years or longer on average at our project sites. Further, we are implementing the Archaea V1 plant design this year, which is a standardized, modularized design that is expected to significantly reduce capital costs and build timelines compared to industry averages.”

So double returns for 70% of their production and aiming for higher it the other 30% ,I’m interested to see where this goes.

Costs are very predictable.

Price paid might be a concern, but I think it may prove ok

My understanding is we are still a seller,but perhaps not a very active one.

Think the hope was that since there was no easy sale,perhaps if left through time somehow the problem might fix itself

But that’s only my version of what I think is happening