Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Said it before, oil price sentiment drives around 20% of the share price currently
I'm currently trading on this and this alone. Sentiment turned bearish so SP dropped, news stories of record jet demand, summer driving season indicate it's starting to turn bullish again - see the rather rapid climb back to 85$, a few week on week crude draws and we'll be back to £5+ and an easy trade.
Remains to be seen what OPEC will say at their next meeting (is it august?) but think they'll think twice about how they craft their comms after their previous statement sent prices down
Https://www.proactiveinvestors.co.uk/companies/news/1050040/bp-tipped-to-see-growth-from-us-shale-business-1050040.html
BP PLC's (LSE:BP.) American shale business will be a large part of the group’s growth over the remainder of the decade, analysts at RBC today highlighted in a note.
RBC, which rates BP at ‘outperform’, believes that the oil majors investment plans are shifting away from ‘transition growth engines’ (effectively a pseudonym for ‘net zero’ projects) in favour of upstream business, albeit, RBC notes that this has yet to be formalised as a strategy by BP.
All divi info can be found here: https://www.bp.com/en/global/corporate/investors/shareholder-and-dividend-information/dividends.html
Very true, a lot of commentators already stated the increased need for electric power which should hopefully bring upwards momentum.
I'm still waiting for MA to make his 'big bang' as CEO, $2bn in cash cost savings isn't ambitious enough - Anyone know if we have an investor day coming up? Hopefully he adds more clarity to his teased slowdown on renewables and rocket the SP back to where it should be.
I remain a bit more balanced, but confused to how we still struggle to mantain a £5 share price. when bp have promised to buy back a minimum of 14% of the company (vs. todays market cap), oil is stuck in a $75-85 range and OPEC have shown they effectively control the oil price.
Https://oilprice.com/Energy/Oil-Prices/Markets-Have-Overreacted-to-OPECs-Plan-To-Phase-Out-Production-Cuts.html
Standard Chartered: the price undershooting was the consequence of markets being dominated by a combination of extreme macroeconomic pessimism; speculative shorts and over-enthusiastic algorithmic trading.
Standard Chartered: OPEC+ decisions will ultimately prove positive for oil prices.
Brent crude declined almost $8 from last week's high.
A move down in credit rating isnt always a bad thing - all about where this cash is being allocated too.
I am starting to question the longevity of buybacks however - $14bn over 2 years? Why wouldn't you uprate your divi with even half of that cash and boost your SP. Get the SP monkeys off your back in the first year of your job and secure those SP-related bonuses. We've bought back 16-18% of shares since COVID and the impact to the SP has been almost null. Why isn't the board questioning this?
Https://www.reuters.com/business/energy/sp-lowers-bps-credit-outlook-stable-over-debt-levels-2024-06-03/
The agency downgraded the energy company's credit outlook to stable from positive while affirming its 'A-' long-term and 'A-2' short-term issuer credit ratings.
"BP's updated cash allocation strategy is less likely to result in meaningful further absolute debt reduction," S&P said in a statement.
The longer we stay in the £4s the longer the sharks will circle. I can't believe we're not being seriously looked at already, $120bn purchase price, sell off the renewables for $10bn, $30bn cash on balance sheet and the purchase price is $80bn before you look at enriching your downstream assets in high GDP markets, accessing a prolific GoM production base and US refining system and unlocking billions in cost savings and synergies (firing heads) if acquired by another major.
The only thing is if the UK govt has issued a hands-off warning, which every oil CEO will be very aware of.
.. the oil price & sentiment is on a knife-edge, we're only one build, inflation or China demand report from a spike/crash in oil price and thus share price. Aside from a tiny position in bp & shell I'm watching from the sidelines. Will dip back in at 460 and below and start rebuilding a position, hopefully the summer travel season means we start seeing demand increasing above seasonal affects and more draws in the US.
Seems to be all quite on the M&A front (save for the small Australia conveneince deal) - hopefully we get something big and juicy. I think MA has it in him to surprise people with a large M&A play beyond the scale of what Looney achieved. Cashflows look solid, debt is a little high but so is our cash balance. In short, we can afford a large acquisition. An addition to our oil reserves would throw the cat amongst the pigeons strategy wise - Who knows!
This is just a continuation of the ongoing Chevron and Exxon US acquisition activity, after the last two years the industry has and the cash it has on hand it is inevtiable the smaller players in the worlds strongest oil market (demand) get swallowed up.
An acquisition of a supermajor is a step-up from any activity we have seen to date. Dont kid yourself that a $17bn all stock acqusiition is on the same level as bp getting acquired.... (however much I'd like it to happen)
Its going to be a rough H2 investment wise with the UK and US elections - my investment stratgey for the next 6 months is just to continue adding to the 3/4 ETFs I'm in and ignore any movements. Also building a small position in an India focused ETF as their GDP growth is set to be huge
I wouldn't bet against this dropping more, we're only one large oil build away from 460s.
+'ve I see on macro is the earnings season we are currently going through most industries are delivering pretty strong earnings which will flow through to Q2 earnings
Currently on a sharesave scheme, £3.91 strike price 2026 vest date - seems a no brainer way to make a couple of thousand tax free - although it annoys me it doesnt generate dividends through the program.
This years programe comes out soon - I'll only do it if we continue sliding downwards and we get a c: £3.70 strike price
Made £11k profit (tax free) from my last one, had a £2.49 strike price, sold for £5.58