Being the largest energy company operating in the Gulf of Mexico, BP (NYSE:BP) was hit hard by the oil drilling moratorium imposed by the Obama administration. Their next quarter will reflect that with lower revenue and earnings.
Expectations for the performance of BP for the last quarter are being lowered, as it looks like they'll be generating a profit of $4.8 billion, down from $5.4 billion in profits last year in the same quarter.
This will be measured against BP's peers, who are expected to have improved quarters, and which will put the pressure on new CEO Bob Dudley to do something to improve the performance of the company and reinstate the dividend.
Most industry observers say if BP doesn't reinstate the dividend soon, they will probably incur a loss of major shareholders like pension funds who have held onto their shares in light of hopes of the dividend being instated soon; the only reason they invest in BP in the first place.
BP has historically paid out more than their competitors in dividends.
BP will report their earnings on November 2.
Showing posts with label BP Shares. Show all posts
Showing posts with label BP Shares. Show all posts
Monday, October 25, 2010
Wednesday, August 4, 2010
BP (NYSE:BP) Ends Trading Session at $40 A Share
BP (NYSE:BP) ended Tuesday's trading session at exactly $40 a share, continuing their incremental move upwards, as more clarity in reference to their overall liability in the Gulf oil disaster emerges.
Among the integrated major energy companies, BP led the way for the trading day, gaining $0.58, or 1.47 percent.
BP also launched their "static kill" efforts at about 4:00 PM EDT Tuesday, after fixing a leak in their hydraulic system.
Teams also continue to scour the Gulf states to determine the extent of damage to wetlands and other related habitats and wildlife. So far it is far less than originally believed, which is good news for BP.
The Gulf has also been found to be far more resilient in taking care of itself, as little oil remains after evaporation and microbes, which in the case of the microbes eat the oil as dinner.
Warm waters in the Gulf contribute to the propagation of the microbes, which the increased amount of oil contributed to their expansion.
The dispersant used by BP also helped tremendously in breaking down the oil to more manageable size for the microbes, all of which has contributed to the far lower than estimated damage to the region.
Among the integrated major energy companies, BP led the way for the trading day, gaining $0.58, or 1.47 percent.
BP also launched their "static kill" efforts at about 4:00 PM EDT Tuesday, after fixing a leak in their hydraulic system.
Teams also continue to scour the Gulf states to determine the extent of damage to wetlands and other related habitats and wildlife. So far it is far less than originally believed, which is good news for BP.
The Gulf has also been found to be far more resilient in taking care of itself, as little oil remains after evaporation and microbes, which in the case of the microbes eat the oil as dinner.
Warm waters in the Gulf contribute to the propagation of the microbes, which the increased amount of oil contributed to their expansion.
The dispersant used by BP also helped tremendously in breaking down the oil to more manageable size for the microbes, all of which has contributed to the far lower than estimated damage to the region.
Tuesday, July 27, 2010
Wis. Ron Johnson Changed Mind, Not Selling BP (NYSE:BP) Shares
Originally when Republican Senate candidate Ron Johnson was questioned two weeks ago about his BP (NYSE:BP) shares, he said he was going to be selling them. It seems he has had a change of heart because now he's not so sure.
He owns between $116,000 - $315,000 in BP stock. His campaign said on July 9th that Johnson was planning on moving his investments into a blind trust. Days later at the completion of a campaign rally, he told reporters that he was planning on selling his BP stock to help fund his campaign. As of Monday, he said the sale wasn't for sure.
"I think that will eventually happen, but I'm going to do it based on market conditions. I'm going to have to finance this campaign. At some point in time to get my message out, that will probably happen. But it's going to be based on market conditions," said Johnson.
His running mate, Democratic Senator Russ Feingold has accused Johnson of talking out of both sides of his mouth. John Kraus, Feingold's campaign strategist stated, "The fact that he now says he is waiting to make profit off his investment in BP so that he can continue to fund his campaign to defend big oil, shows that he is more interested in corporate profits than doing the right thing."
He owns between $116,000 - $315,000 in BP stock. His campaign said on July 9th that Johnson was planning on moving his investments into a blind trust. Days later at the completion of a campaign rally, he told reporters that he was planning on selling his BP stock to help fund his campaign. As of Monday, he said the sale wasn't for sure.
"I think that will eventually happen, but I'm going to do it based on market conditions. I'm going to have to finance this campaign. At some point in time to get my message out, that will probably happen. But it's going to be based on market conditions," said Johnson.
His running mate, Democratic Senator Russ Feingold has accused Johnson of talking out of both sides of his mouth. John Kraus, Feingold's campaign strategist stated, "The fact that he now says he is waiting to make profit off his investment in BP so that he can continue to fund his campaign to defend big oil, shows that he is more interested in corporate profits than doing the right thing."
Tuesday, July 20, 2010
BP (NYSE:BP) Oil Shares Plummet in Trading
Beginning the session in the negative column, oil shares started moving up as the energy sector gained strength from Weatherford's comments and higher crude oil prices but BP (NYSE:BP) plummeted. Oil rose 1 percent or 75 cents to $77.65 a barrel, while early in the morning it was trading down 1 percent reaching a low for the day of $76.05.
The New York Stock Exchange Arca Natural Gas Index gained 0.3 percent to 501. While The Dow Jones Industrial Average dipped 87 points or almost 0.9 percent. The NYSE Arca Oil Index declined 0.3 percent to 940. The Philadelphia Oil Service Index saw an increase of 1.5 percent to $178.34.
Exxon Mobil was down 0.5 percent to $58.13 and Chevron by 0.6 percent to $71.54. While BP shares took a nose dive to $34.87 losing 2.5 percent. The pressure in BP's well continues to slowly rise, it has now reached 6,825. They have not re-started drilling the relief well and are currently going over all possible options.
The New York Stock Exchange Arca Natural Gas Index gained 0.3 percent to 501. While The Dow Jones Industrial Average dipped 87 points or almost 0.9 percent. The NYSE Arca Oil Index declined 0.3 percent to 940. The Philadelphia Oil Service Index saw an increase of 1.5 percent to $178.34.
Exxon Mobil was down 0.5 percent to $58.13 and Chevron by 0.6 percent to $71.54. While BP shares took a nose dive to $34.87 losing 2.5 percent. The pressure in BP's well continues to slowly rise, it has now reached 6,825. They have not re-started drilling the relief well and are currently going over all possible options.
Friday, July 16, 2010
BP (NYSE:BP) Shares Decline As Cap Is Holding
After all the anticipation and excitement over BP's (NYSE:BP) success in stopping the leaking oil, reality has hit to the massive effects of the worst oil spill in U.S. history. BP saw a decline in their shares of 4 percent to $37.38.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Thursday, July 15, 2010
BP (NYSE:BP) Stocks Price Dropping Again
After a five day winning streak, BP (NYSE:BP) stocks price is dropping again. The decline is said to be because of the delayed testing that would tell if the sealing cap that has been installed is successful.
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
Tuesday, July 13, 2010
BP (NYSE:BP) UPDATE: Sealing Cap Installed, Trading Shares, Futures Trading
After much anticipation, BP (NYSE:BP) has verified that they have been successful in installing the sealing cap onto the leaking Macondo well in the Gulf. Testing is the next phase of the process. Over the next 48 hours the integrity test will be preformed. If successful, no oil will be released into the ocean.
BP stated that a sealing cap like what they have installed, has never before been used at such depths as a mile below the surface. It is unsure if the cap will be able to contain the oil and gas. Once all the information is gathered from the testing, it will get forwarded to different U.S. Government agencies for review.
They will than be able to determine "the way forward" which may include such options as continued testing beyond the 48 hours, or the reinstatement of prior containment. Everything is still up in the air, even though there's success of the placement of the sealing cap, it could end up being no better then the previous containment cap.
BP trading shares have seen an incline again today of 2.5 percent. This is caused by speculation of the continued negotiations to sell $10 billion worth of their Alaskan assets to Apache Corporation. It leaves one wondering though, if the cap is a failure will the futures trading see another massive decline ?
BP stated that a sealing cap like what they have installed, has never before been used at such depths as a mile below the surface. It is unsure if the cap will be able to contain the oil and gas. Once all the information is gathered from the testing, it will get forwarded to different U.S. Government agencies for review.
They will than be able to determine "the way forward" which may include such options as continued testing beyond the 48 hours, or the reinstatement of prior containment. Everything is still up in the air, even though there's success of the placement of the sealing cap, it could end up being no better then the previous containment cap.
BP trading shares have seen an incline again today of 2.5 percent. This is caused by speculation of the continued negotiations to sell $10 billion worth of their Alaskan assets to Apache Corporation. It leaves one wondering though, if the cap is a failure will the futures trading see another massive decline ?
Monday, July 12, 2010
BP (NYSE:BP): Share Prices, Oil Futures, Energy Stocks
Based on the optimism that Apache Corporation may purchase about $12 billion of BP's (NYSE:BP) assets, BP's shares saw another incline. BP's reasoning for this possible sale is to help raise $10 billion to help cover the cost from the devastating explosion and sinking of the Deepwater Horizon rig.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
Friday, July 9, 2010
BP (NYSE:BP) Up Fourth Straight Day
For the fourth trading day in a row, BP (NYSE:BP) ended up in positive territory, as perceptions it's getting close to plugging the well, and they may get more liquid through investment from the Middle East.
Neither of these are a guarantee in the short term, and both could come back to bite them quickly if they fail.
The optimism they may plug the well before original estimates in being run with by the media, even though caveats they're unlikely to do so have been thrown out to balance that idea.
It's possible, but everything would have to fall into place perfectly for that to happen, and more than likely the middle of August will still be the approximate time they'll reach that goal, although even plugging the oil well isn't guaranteed at that time.
BP CEO Tony Hayward has been globe trotting, presenting the idea he is out there working on getting some liquidity into the company through investments from Middle Eastern sovereign wealth funds or large corporations in the region.
That is important because they're trying to build a defense against a possible takeover, which they could be under huge pressure to accept in light of the oil spill fiasco.
They've also secured funding through $1 billion in guaranteed loans from at least 9 banks at last count, which they'll be able to tap quickly if needed.
Much of this gives the company breathing room, but not much else, yet it's a lot better than they were just a week or so ago, and investors seem to agree with that assessment by voting their dollars in the oil giant.
BP finished Thursday at $33.74, a $0.55 gain, or 1.66 percent. Market cap at the end of the day was $105.63 billion.
Neither of these are a guarantee in the short term, and both could come back to bite them quickly if they fail.
The optimism they may plug the well before original estimates in being run with by the media, even though caveats they're unlikely to do so have been thrown out to balance that idea.
It's possible, but everything would have to fall into place perfectly for that to happen, and more than likely the middle of August will still be the approximate time they'll reach that goal, although even plugging the oil well isn't guaranteed at that time.
BP CEO Tony Hayward has been globe trotting, presenting the idea he is out there working on getting some liquidity into the company through investments from Middle Eastern sovereign wealth funds or large corporations in the region.
That is important because they're trying to build a defense against a possible takeover, which they could be under huge pressure to accept in light of the oil spill fiasco.
They've also secured funding through $1 billion in guaranteed loans from at least 9 banks at last count, which they'll be able to tap quickly if needed.
Much of this gives the company breathing room, but not much else, yet it's a lot better than they were just a week or so ago, and investors seem to agree with that assessment by voting their dollars in the oil giant.
BP finished Thursday at $33.74, a $0.55 gain, or 1.66 percent. Market cap at the end of the day was $105.63 billion.
Tuesday, July 6, 2010
BP (NYSE:BP) Upgraded From Hold To Buy: Stock Prices Rise, Oil Futures
Analysts from the Royal Bank of Scottland upgraded BP (NYSE:BP) from hold to buy. They said the reasoning for this was that they've dismissed the negative rumors of what the probable cost of the massive Gulf oil leak could be. After a three day weekend, oil and gas stocks saw an incline seeing sector wide gains of 2.5 percent or higher.
BP lead percentage gainers by 6.5 percent to $31.25 a share. Halliburton was up 3.6 percent at $26.65. Before the bell, Nasdaq 100 index futures rose 26.59 or 1.5 percent to 1,747.75. Dow Jones industrial average futures went up 102 or 1.1 percent to 9,628. Standard & Poors 500 index futures rose 12.00 or 1.2 percent 1.026.30.
Early on, the New York Stock Exchange Arca Oil Index was up 2.5 percent to 901.11 points. Leading was the Spanish oil company Repsol up 4.2 percent to $21.05. The Philadelphia Oil Service Sector Index also saw an increase of 3 percent to 170.4 points.
While the NYSE Arcca Natural Gas Index was ahead 2.6 percent to 492.25 points and had all 15 of its components trading higher. In morning trading National Fuel Gas Co., EOG Resources, and Ultra Petroleum Corporation were the front runners at 3.5 percent or higher.
BP lead percentage gainers by 6.5 percent to $31.25 a share. Halliburton was up 3.6 percent at $26.65. Before the bell, Nasdaq 100 index futures rose 26.59 or 1.5 percent to 1,747.75. Dow Jones industrial average futures went up 102 or 1.1 percent to 9,628. Standard & Poors 500 index futures rose 12.00 or 1.2 percent 1.026.30.
Early on, the New York Stock Exchange Arca Oil Index was up 2.5 percent to 901.11 points. Leading was the Spanish oil company Repsol up 4.2 percent to $21.05. The Philadelphia Oil Service Sector Index also saw an increase of 3 percent to 170.4 points.
While the NYSE Arcca Natural Gas Index was ahead 2.6 percent to 492.25 points and had all 15 of its components trading higher. In morning trading National Fuel Gas Co., EOG Resources, and Ultra Petroleum Corporation were the front runners at 3.5 percent or higher.
Monday, July 5, 2010
BP (NYSE:BP): We're Not Issuing Any New Shares
Despite the pressure BP (NYSE:BP) is feeling financially, they are saying there will be no more newly issued shares. Although they have been making overtures to several oil investors in different countries where there is good relations. In an attempt to entice them to purchase shares.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Friday, June 25, 2010
BP (NYSE:BP) Stock Price Reaches All Time Low
Due to concerns continuing to mount about BP's (NYSE:BP) future, there is added pressure on oil and gas stocks by the New York stock oil futures. These losses came after BP announced that it has to date spent $2.35 billion. This money has went to various things including the oil cleanup efforts, legal claims that have been paid, and grants to the states on the Gulf that have seen the biggest impact since the April 20th rig disaster.
The other thing that is causing renewed concern and placing pressure on BP stocks, is the pending development of a tropical storm. If this storm hits the Gulf of Mexico as predicted, it will cause possible large delays in the fuel containment efforts. Broker Nomura cut it projected BP price target from 593p to 465p.
Nomura said, "a heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near term credit event around BP." BP stock fell to $26.96 a share losing another 6.1 percent. This beating their prior day low of $28.56, losing a total market value of almost 53 percent since April 20th.
"BP's market cap is eroding and its ability to finance itself in the capital market is impaired. It's anybodies guess what can happen but the fear of the market is that that liability could be so enormous that BP may have to seek bankruptcy protection," said Orr.
The other thing that is causing renewed concern and placing pressure on BP stocks, is the pending development of a tropical storm. If this storm hits the Gulf of Mexico as predicted, it will cause possible large delays in the fuel containment efforts. Broker Nomura cut it projected BP price target from 593p to 465p.
Nomura said, "a heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near term credit event around BP." BP stock fell to $26.96 a share losing another 6.1 percent. This beating their prior day low of $28.56, losing a total market value of almost 53 percent since April 20th.
"BP's market cap is eroding and its ability to finance itself in the capital market is impaired. It's anybodies guess what can happen but the fear of the market is that that liability could be so enormous that BP may have to seek bankruptcy protection," said Orr.
Tuesday, June 22, 2010
BP (NYSE:BP) Oil Spill Costs U.S. State Pensions $1.4 Billion
While the majority of the focus is on the effects of BP's (NYSE:BP) oil spill disaster in the ocean and to wildlife, it's effects have also touched the U.S. State pension. The California Public Employees fund has lost a total value of close to $284.6 million. There are 42 state retirement accounts that are tied into BP's stock prices.
The U.S. Public Pension fund has been struggling since last year, with a decline of 21 percent total investment losses. As of May 1 of this year, they held more than $300 million shares in BP. The largest U.S. Pension fund, Calpers at $210 billion, had a total of 58.2 million shares as of April 20th. This is more than any other state pension. They saw a decline from $585.7 million down to $301 million.
Brad Pacheco, a spokesman said, " Calpers has a well diversified portfolio and long term investment strategy to weather these ups and downs, even those caused by unusual circumstances such as this one. We will be engaging BP on corporate governance to discuss the impact of the crisis on the value of the company."
The U.S. Public Pension fund has been struggling since last year, with a decline of 21 percent total investment losses. As of May 1 of this year, they held more than $300 million shares in BP. The largest U.S. Pension fund, Calpers at $210 billion, had a total of 58.2 million shares as of April 20th. This is more than any other state pension. They saw a decline from $585.7 million down to $301 million.
Brad Pacheco, a spokesman said, " Calpers has a well diversified portfolio and long term investment strategy to weather these ups and downs, even those caused by unusual circumstances such as this one. We will be engaging BP on corporate governance to discuss the impact of the crisis on the value of the company."
Monday, June 21, 2010
Stock Prices, Oil Futures: BP (NYSE:BP) and Anadarko (NYSE:APC)
BP (NYSE:BP) stock prices drop as many are wondering about oil futures, this drop is due to Anadarko Petroleum (NYSE:APC) making it clear that they are refusing to pay their share, being 25 percent of the oil cleanup costs. Typically in a situation like what has happened in the Gulf of Mexico, all companies involved that have a stake in the company are liable. By law, the only exception is if BP were to be found negligent. Then Anadarko may be released of any liability and would not have to pay anything.
BP shares were down 4.4 percent to $30.34. That's almost a 50 percent drop from where they closed on April 20th. While Anadarko's shares saw a jump in trading of 1.3 percent.
Monday morning BP stated that the oil spill response had reached 2 billion. They said they've paid out over 32,000 claims of the more than 65,000 claims they've received. In excess of $105 million. In a statement BP said, "it is too early to quantify other potential costs and liabilities associated with the incident."
Mike Tosaw, investment advisor representative of Know Your Options Incorporated stated,
"over the short term we're not touching it with a 10 foot poll," although he does expect it to make it over the long term. Tosaw continues, "I personally am not putting my money where my mouth is on that. There's just too much uncertainty with it."
BP shares were down 4.4 percent to $30.34. That's almost a 50 percent drop from where they closed on April 20th. While Anadarko's shares saw a jump in trading of 1.3 percent.
Monday morning BP stated that the oil spill response had reached 2 billion. They said they've paid out over 32,000 claims of the more than 65,000 claims they've received. In excess of $105 million. In a statement BP said, "it is too early to quantify other potential costs and liabilities associated with the incident."
Mike Tosaw, investment advisor representative of Know Your Options Incorporated stated,
"over the short term we're not touching it with a 10 foot poll," although he does expect it to make it over the long term. Tosaw continues, "I personally am not putting my money where my mouth is on that. There's just too much uncertainty with it."
Thursday, June 10, 2010
Citigroup (NYSE:C) Loves BP (NYSE:BP) Share Price
Citigroup (NYSE:C) analyst Mark Fletcher, while acknowledging BP (NYSE:BP) will face major challenged ahead, said the long-term outlook for the stock is stable, and the current price is based on worst-case scenarios.
Even so, Fletcher increased his risk rating on BP from medium to high, looking at the high end of the estimates of $40 billion as what they could ultimately pay out for all liabilities.
"We recognize that there is little certainty or definition around the costs of the spill to BP's shareholders," said Fletcher. "The quantum of cost and the share of burden remains uncertain but we have adjusted for almost four times what we believe reasonable cost to be."
In the long-term, Fletcher is viewing the situation of the stock, as mentioned, being discounted on the basis of the worst case scenario, rather than the likely outcome, making the company undervalued in his opinion.
Even so, Fletcher increased his risk rating on BP from medium to high, looking at the high end of the estimates of $40 billion as what they could ultimately pay out for all liabilities.
"We recognize that there is little certainty or definition around the costs of the spill to BP's shareholders," said Fletcher. "The quantum of cost and the share of burden remains uncertain but we have adjusted for almost four times what we believe reasonable cost to be."
In the long-term, Fletcher is viewing the situation of the stock, as mentioned, being discounted on the basis of the worst case scenario, rather than the likely outcome, making the company undervalued in his opinion.
BP (NYSE:BP) Bankruptcy, Fact or Fiction
Many are wondering what is really happening with BP (NYSE:BP) and the claims that they are filing bankruptcy. Matt Simons, oil industry insider and the energy focused investment bank Simmons & Co. told Fortune magazine that BP will eventually run out of money from lawsuits, oil cleanup costs, among other expenses.
"They have about a month before they declare chapter 11 bankruptcy," said Simmons. "One really smart thing Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup, he continued, "but there isn't enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this, my guess is they'll go into panic and file chapter 11."
In less than seven weeks BP has lost over half its market value, this is BP's lowest level since 1996. Their bonds are also being crushed. Before April 22nd, the day the Deepwater Horizon sunk, BP shares were being traded above $60. With yesterdays close, there was a loss of 16 percent at $29.20.
"They have about a month before they declare chapter 11 bankruptcy," said Simmons. "One really smart thing Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup, he continued, "but there isn't enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this, my guess is they'll go into panic and file chapter 11."
In less than seven weeks BP has lost over half its market value, this is BP's lowest level since 1996. Their bonds are also being crushed. Before April 22nd, the day the Deepwater Horizon sunk, BP shares were being traded above $60. With yesterdays close, there was a loss of 16 percent at $29.20.
Wednesday, June 9, 2010
BP (NYSE:BP) Bankruptcy and Stock Trading
Many are concerned that BP (NYSE:BP) will file for bankruptcy and that their stock trading will continue to fall. Even though BP seems to have a we can handle it all attitude, they will eventually run out of money. With them putting out such large amounts for things like television ads to the tune of $50 million dollars, it makes you wonder how they are planning to continue on at this pace financially. Not to mention, they haven't even been successful in their fuel spill containment efforts or even scratched the surface of beginning to clean up this catastrophe.
There is also much speculation that BP is getting ready to cut their dividends in order to be able to pay for the Gulf oil cleanup. This sent BP shares plummeting below 400 pence today. At the end of the day trading, BP was down 4.2 percent at 391.5 pence. Before the hazardous spill BP was at 648 pence.
"Consumer borrowing unexpectedly rose in April but fell in March, suggesting Americans aren't too comfortable with their finances despite the economic recovery. The Federal Reserve on Monday said consumer credit outstanding increased at a seasonally adjusted annual rate of 0.5 % up $954.8 million to 2,440 trillion. Economists surveyed by Dow Jones News wires had for cast a $1.0 billion decline in consumer credit during April. But the surprise gain came with a revision to March, when borrowing fell $5.4 billion or 2.7 %, originally it was estimated rising by $2.0 billion," reports Jeff Bater and Meena Thiruvengadam.
There is also much speculation that BP is getting ready to cut their dividends in order to be able to pay for the Gulf oil cleanup. This sent BP shares plummeting below 400 pence today. At the end of the day trading, BP was down 4.2 percent at 391.5 pence. Before the hazardous spill BP was at 648 pence.
"Consumer borrowing unexpectedly rose in April but fell in March, suggesting Americans aren't too comfortable with their finances despite the economic recovery. The Federal Reserve on Monday said consumer credit outstanding increased at a seasonally adjusted annual rate of 0.5 % up $954.8 million to 2,440 trillion. Economists surveyed by Dow Jones News wires had for cast a $1.0 billion decline in consumer credit during April. But the surprise gain came with a revision to March, when borrowing fell $5.4 billion or 2.7 %, originally it was estimated rising by $2.0 billion," reports Jeff Bater and Meena Thiruvengadam.
Tuesday, June 8, 2010
BP (NYSE:BP): Declaring Bankruptcy
Andrew Ross Sorkin, writes that Wall Street is starting to look seriously at BP (NYSE:BP) and their potential to file bankruptcy.
"The idea that BP might one day file for bankruptcy, particularly as part of a merger that would enable it to cardon off it's liabilities from the spill, is starting to percolate on Wall Street. Bankers and lawyers are already sizing up potential deals (and counting their potential fees.) Given the plunge in BP's share prices, the company has lost more than a third of its value since Deepwater Horizon blew. Some bankers and analysts say BP is starting to look like take over bait. The question is, who would buy BP given its enormous potential liabilities," said Sorkin.
Federal Reserve chairman, Ben Bernanke predicts, "we'll have continued recovery but it won't feel terrific." He offers cautious reassurance that the U.S. recovery is on track, despite the turmoil we've seen in the financial markets. "There seems to be a good bit of momentum in consumer spending and investments," says Bernanke.
Although BP isn't verifying or denying weather they are declaring bankruptcy or not, they seem quite confident. Despite the fact they still have yet to contain the fuel spill spewing onto the seabed, have already spent over a billion dollars, and haven't even started on the fuel cleanup, or dealt with the legal claims that are pouring in.
"The idea that BP might one day file for bankruptcy, particularly as part of a merger that would enable it to cardon off it's liabilities from the spill, is starting to percolate on Wall Street. Bankers and lawyers are already sizing up potential deals (and counting their potential fees.) Given the plunge in BP's share prices, the company has lost more than a third of its value since Deepwater Horizon blew. Some bankers and analysts say BP is starting to look like take over bait. The question is, who would buy BP given its enormous potential liabilities," said Sorkin.
Federal Reserve chairman, Ben Bernanke predicts, "we'll have continued recovery but it won't feel terrific." He offers cautious reassurance that the U.S. recovery is on track, despite the turmoil we've seen in the financial markets. "There seems to be a good bit of momentum in consumer spending and investments," says Bernanke.
Although BP isn't verifying or denying weather they are declaring bankruptcy or not, they seem quite confident. Despite the fact they still have yet to contain the fuel spill spewing onto the seabed, have already spent over a billion dollars, and haven't even started on the fuel cleanup, or dealt with the legal claims that are pouring in.
Monday, June 7, 2010
Futures Trading, Stock Prices: Exxon Mobil (NYSE:XOM), BP (NYSE:BP)
BP (NYSE:BP) shares rose 2.8 percent, as well as Exxon Mobil's (NYSE:XOM) shares rising 0.37 percent. This stock price increase is believed to be because of BP's success in their recent fuel oil containment attempt. BP says that the cap that was put onto the leaking pipe, continues to capture the spewing oil and they're expecting to increase the amount collected as the week progresses. In energy trading, oil futures were down to $71.46 a barrel, a 5 cent loss.
As of 10:08 AM in New York trading, the Standard & Poors 500 index saw an increase of 0.4 percent to 1,068.68. This was after a drop in futures trading declined as much as 1.3 percent before the opening of the U.S. stock exchange. This was after S&P 500 saw a 3.4 percent drop on June 4th. The Dow Jones Industrial Average futures saw an increase of 13 points, to 9959.00. The Nasdaq 100 futures rose to 1839.50, seeing an increase of 5.25 points.
Stanley Nabi, Vice Chairman of the New York based Silvercrest Asset Management group, in charge of managing $9 billion said, "I still see a choppy stock market of small gains and losses. We see some buying today after all, how much can you keep on beating the market ? Investors just need to have more conviction. But that's probably not going to happen until we see strong second quarter earnings."
As of 10:08 AM in New York trading, the Standard & Poors 500 index saw an increase of 0.4 percent to 1,068.68. This was after a drop in futures trading declined as much as 1.3 percent before the opening of the U.S. stock exchange. This was after S&P 500 saw a 3.4 percent drop on June 4th. The Dow Jones Industrial Average futures saw an increase of 13 points, to 9959.00. The Nasdaq 100 futures rose to 1839.50, seeing an increase of 5.25 points.
Stanley Nabi, Vice Chairman of the New York based Silvercrest Asset Management group, in charge of managing $9 billion said, "I still see a choppy stock market of small gains and losses. We see some buying today after all, how much can you keep on beating the market ? Investors just need to have more conviction. But that's probably not going to happen until we see strong second quarter earnings."
Wednesday, May 26, 2010
BP (NYSE:BP) Stock Plummets Then Rises
BP (NYSE:BP) share prices reflect peoples uncertainty of what will happen as BP starts their "top kill" endeavor. Earlier in the day, BP's stocks fell 1.6 percent. This was as many were waiting in anticipation to hear of news on what BP was going to do.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
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