BP p.l.c. is an integrated oil and gas company. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. The Company operates through three segments: Upstream, Downstream and Rosneft. Its Upstream segment is engaged in oil and natural gas exploration, field development and production; midstream transportation, storage and processing, and the marketing and trading of natural gas, including liquefied natural gas (LNG), together with power and natural gas liquids (NGLs). Its Downstream segment is engaged in refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail customers. The company was founded in 1889 and is based in London, England.
BP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Bp Plc. To summarize, we found that Bp Plc ranked in the 65th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Bp Plc ended up being:
Bp Plc's effective tax rate, as measured by taxes paid relative to net income, is at 26 -- greater than 88.04% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Bp Plc has a reliance on debt greater than only 15.36% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GMLP, CLNE, KMI, PNRG, and UGP can be thought of as valuation peers to BP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
[[BP]]'s 50%-owned Lightsource BP solar company says it completed a $380M financing package and has started construction on two solar projects in Texas.The 163 MW Elm Branch and 153 MW Briar Creek solar projects, both located ~40 miles south of Dallas, are expected to begin commercial operation later this year.Bank...
(Bloomberg) -- Last year, BP Plc called on Texas regulators to take bold action to stamp out the routine flaring of natural gas, a harmful environmental practice that’s drawn increasing scrutiny from investors.Yet on Tuesday, it was BP’s turn to get pushback from the Texas Railroad Commission when 121 of its flaring requests were up for consideration. The agency postponed a decision until its next meeting, and its newest member slammed the burning of excess gas as a “waste of our precious resources.”“I am amenable to allowing fair time for flaring to occur in certain circumstances, but limits must be set,” Jim Wright, a Republican who joined the three-member commission this month, said in a statement. Wright’s comments didn’t explicitly name BP, but the London-based company made up the ...
(Bloomberg) -- FreeWire Technologies Inc., an electric vehicle charging and power startup, has raised $50 million in a series C funding round.The round was led by energy-focused private equity firm Riverstone Holdings, said FreeWire Chief Executive Officer Arcady Sosinov in an interview Monday. Existing shareholders including the venture arm of BP Plc, Energy Innovation Capital, Trirec and Alumni Ventures Group also participated in the round, Sosinov said.FreeWire has raised $100 million in total funding to date, including the new round, according to Sosinov. The company’s valuation in the new round couldn’t immediately be learned. “One of the reasons we placed our bet here is that FreeWire’s technology is more advanced,” said Riverstone partner Robert Tichio, who will join the company’...
[[BP]]'s oil exploration team has received a cold reception from CEO Bernard Looney since the start last year of his climate change overhaul, as geologists, engineers and scientists at the company have been slashed to fewer than 100 from a peak of more than 700 a few years ago, Reuters reports.Hundreds...