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BP
(NYSE:BP)
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Rating:58Neutral
Price Target:
$44.00
▲(0.41% Upside)
Action:Reiterated
Date:08/07/26
BP scores 58 primarily due to improving but still volatile financial performance: cash flow is strong and earnings have rebounded, but leverage has increased and profitability remains modest and cyclical. Technical indicators are broadly neutral with some trend support but limited momentum. Valuation is held back by a high P/E despite a solid dividend yield, while the latest earnings call supports the score with balance-sheet progress and disciplined guidance tempered by safety, cost, and operational execution risks.
Positive Factors
Strong cash generation and deleveraging
Substantial operating and free cash flow gives BP capacity to fund investment, dividends and debt reduction. Recent net debt progress and planned liability reductions can improve resilience, although cash conversion remains uneven.
Negative Factors
Elevated leverage and liabilities
The more debt-heavy capital structure reduces financial flexibility if commodity prices or refining margins weaken. Significant hybrids, leases and settlement obligations also compete with investment and shareholder distributions for cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and deleveraging
Substantial operating and free cash flow gives BP capacity to fund investment, dividends and debt reduction. Recent net debt progress and planned liability reductions can improve resilience, although cash conversion remains uneven.
Read all positive factors
BP Key Performance Indicators (KPIs)
Any
Operating Revenue by Segment
Shows how much revenue each business segment generates, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how much revenue each business segment generates, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyBP (BP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.39B
Dividend Yield4.51%
Average Volume (3M)9.14M
Price to Earnings (P/E)21.7
Beta (1Y)0.08
Revenue Growth15.84%
EPS Growth791.90%
CountryUS
Employees93,700
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)2.13
Shares Outstanding2,617,362,000
10 Day Avg. Volume6,865,350
30 Day Avg. Volume9,141,675
Financial Highlights & Ratios
PEG Ratio-19.46
Price to Book (P/B)1.70
Price to Sales (P/S)0.48
P/FCF Ratio8.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.94Price Target Upside7.13% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)6.06
Revenue Forecast (FY)$221.70B
BP Business Overview & Revenue Model
Company Description
BP p.l.c. operates as a global energy company, offering a wide array of carbon-based and sustainable products and services. Its operations are structured across three primary segments: Gas & Low Carbon Energy, Oil Production & Operations, and Cust...
How the Company Makes Money
BP primarily makes money by producing, processing, trading, and selling energy and related products and services across multiple segments. (1) Upstream (oil and gas production): BP earns revenue from selling crude oil, natural gas, and natural gas...
BP Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call balanced clear, measurable financial progress against material operational and structural challenges. Positives include a sizable quarter-on-quarter increase in underlying profit and strong cash generation that reduced net debt and financial obligations, plus a 4% dividend increase and concrete portfolio actions to simplify the company. Offsetting these gains are serious safety shortcomings (including a fatality and increased Tier 1 events), QoQ production and throughput declines, inventory losses and impairments, and structural cost reduction progress that has not yet translated into visible earnings improvements. Management set out a detailed plan with priorities (balance sheet strengthening, portfolio simplification, capital discipline, cost efficiency and culture), indicating intent and a pathway to address the lowlights while building on the financial momentum.Positive Updates
Strong Quarter Profit and Earnings Growth
Group underlying profit increased materially versus Q1, with management citing a 78% increase quarter-on-quarter. Group underlying replacement cost profit before interest and tax was $10.3 billion (vs $6.3 billion in Q1, ~+63%), and group underlying replacement cost profit (after interest and tax) was $5.7 billion, $2.5 billion higher than the prior quarter. IFRS profit for the quarter was $3.9 billion after adjusting items and inventory impacts.
Negative Updates
Safety deterioration and fatal incident
A Castrol colleague tragically died following an incident at the Gemlik blending plant in Turkiye in April. Management reported an increase in process safety events in H1 2026 versus H1 2025, including an increase in Tier 1 events, and emphasized safety performance must improve.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarter Profit and Earnings Growth
Group underlying profit increased materially versus Q1, with management citing a 78% increase quarter-on-quarter. Group underlying replacement cost profit before interest and tax was $10.3 billion (vs $6.3 billion in Q1, ~+63%), and group underlying replacement cost profit (after interest and tax) was $5.7 billion, $2.5 billion higher than the prior quarter. IFRS profit for the quarter was $3.9 billion after adjusting items and inventory impacts.
Read all positive updates
Company Guidance
On guidance, BP reiterated forward ranges and gave specific targets and expectations: full-year CapEx is guided at $13.5–$14.0 billion, full-year divestment proceeds at $8–$9 billion (including about $6 billion from the announced Castrol sale), and an underlying effective tax rate of ~35–40%; the company expects financial obligations to fall to around $39–$41 billion by end‑2026 and to deliver its $14–$18 billion net‑debt target ahead of plan (net debt was $22.3 billion at quarter end after a ~$3.1 billion reduction), with a $1 billion perpetual hybrid repayment planned in Q3. For the quarter BP reported total sources of cash of $13.5 billion, underlying cash generation of $12.9 billion, reported operating cash flow of $10.9 billion (after ~$1 billion interest and a ~$1 billion working‑capital build), Q2 CapEx of $3.1 billion, ~$600 million of divestment proceeds in the quarter, $3.1 billion of perpetual hybrid bond outflows (including ~$2.9 billion redeemed), and $1.3 billion of dividends paid; working capital built ~$1 billion in Q2 and ~$7 billion in H1 (including a scheduled ~$1.1 billion Gulf of America settlement), with an expected $2–$3 billion unwind in the remainder of the year.BP Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
53
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 218.17B | 189.34B | 189.19B | 210.13B | 241.39B | 157.74B |
| Gross Profit | 48.55B | 33.53B | 30.24B | 48.07B | 55.10B | 22.86B |
| EBITDA | 39.41B | 31.07B | 28.74B | 43.50B | 32.35B | 32.55B |
| Net Income | 5.49B | 55.00M | 381.00M | 15.24B | -2.49B | 7.57B |
Balance Sheet | ||||||
| Total Assets | 294.63B | 278.53B | 282.23B | 280.29B | 288.12B | 287.27B |
| Cash, Cash Equivalents and Short-Term Investments | 37.23B | 36.71B | 34.52B | 28.59B | 23.91B | 26.22B |
| Total Debt | 72.69B | 84.27B | 71.55B | 63.08B | 55.49B | 69.79B |
| Total Liabilities | 218.21B | 204.53B | 203.91B | 194.80B | 205.13B | 196.83B |
| Stockholders Equity | 58.43B | 53.05B | 59.25B | 70.28B | 67.55B | 75.46B |
Cash Flow | ||||||
| Free Cash Flow | 16.14B | 11.27B | 12.00B | 17.75B | 28.86B | 12.72B |
| Operating Cash Flow | 29.11B | 24.49B | 27.30B | 32.04B | 40.93B | 23.61B |
| Investing Cash Flow | -10.75B | -11.50B | -13.25B | -14.87B | -13.71B | -5.69B |
| Financing Cash Flow | -16.22B | -15.88B | -7.30B | -13.36B | -28.02B | -18.08B |
BP Technical Analysis
Positive
43.82
Price Trends
40.87
Positive
42.54
Positive
39.49
Positive
Market Momentum
0.80
Negative
62.90
Neutral
83.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BP, the sentiment is Positive. The current price of 43.82 is above the 20-day moving average (MA) of 42.78, above the 50-day MA of 40.87, and above the 200-day MA of 39.49, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BP.
BP Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $683.19B | 21.25 | 12.68% | 2.60% | 10.58% | 9.80% | |
76 Outperform | $406.55B | 19.60 | 10.98% | 3.58% | 12.71% | 34.53% | |
75 Outperform | $259.02B | 10.18 | 14.66% | 3.35% | 7.37% | 103.01% | |
72 Outperform | $117.35B | 6.15 | 27.02% | 6.18% | 20.82% | 86.33% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $116.39B | 21.75 | 9.53% | 4.56% | 15.84% | 791.90% |
* Energy Sector Average
BP
BP
44.76
11.49
34.52%
CVX
Chevron
205.27
53.07
34.87%
XOM
Exxon Mobil
165.11
56.52
52.05%
PBR
Petroleo Brasileiro SA- Petrobras
19.15
7.51
64.59%
SHEL
Shell
93.33
22.16
31.13%
TTE
TotalEnergies SE
89.89
29.79
49.57%
BP Corporate Events
BP Files Form 6‑K Detailing Stronger Earnings for First Half 2026
Aug 4, 2026
BP p.l.c. has filed a Form 6‑K with the US Securities and Exchange Commission for August 2026, covering its results and disclosures for the six‑month period ended 30 June 2026. The report is incorporated by reference into multiple exis...
BP boosts Q2 2026 earnings as new CEO accelerates portfolio reshaping
Aug 4, 2026
BP reported stronger financial performance for the second quarter of 2026, with underlying replacement cost profit rising to $5.7 billion, $2.5 billion higher than the prior quarter, and operating cash flow of $10.9 billion despite a $1.0 billion ...
BP Updates Total Voting Rights and Share Capital as of July 31, 2026
Aug 3, 2026
As of 31 July 2026, BP reported that its issued share capital consisted of 15,704,171,728 ordinary shares with one vote each and 12,706,252 preference shares carrying two votes for every £5 in nominal capital. The company also held 782,141,26...
BP Executives Reinvest Dividends into Company Shares in July 2026
Aug 3, 2026
On 1 July 2026, several senior executives at BP, including chief financial officer and director Kate Thomson, EVP upstream Gordon Birrell, EVP people, culture communications and chief human resources and communications officer Kerry Dryburgh, and...
BP Revamps Board Committee Leadership Effective 1 August 2026
Jul 31, 2026
On 31 July 2026, BP announced board committee membership changes effective 1 August 2026, strengthening its governance framework. Ian Tyler will become chair of the nomination and governance committee, while Tushar Morzaria takes over as interim c...
BP Reappoints Deloitte as Statutory Auditor Following 2026 Tender
Jul 31, 2026
On 31 July 2026, BP announced it has concluded a formal tender for its statutory audit and decided to reappoint Deloitte LLP as auditor from the 2028 financial year. The move follows regulatory requirements that large companies tender their audit ...
BP flags lower Q2 2026 output but stronger margins and reduced net debt
Jul 14, 2026
On 14 July 2026, BP issued a trading statement outlining its current estimates for second-quarter 2026 performance, ahead of final results due on 4 August 2026. The company expects reported upstream production to fall to 2,170–2,220mboe/d fr...
BP Updates Share Capital and Voting Rights as of June 30, 2026
Jul 1, 2026
BP p.l.c. reported that as of 30 June 2026 its issued share capital comprised 16,486,312,994 ordinary shares with one vote each and 12,706,252 preference shares with two votes per £5 in nominal capital. The company also disclosed that it held...
BP details first-quarter 2026 dividend and executive share acquisitions under UK plan
Jul 1, 2026
BP confirmed that its board had previously declared a first-quarter 2026 interim dividend of US$0.0832 per ordinary share (US$0.4992 per ADS), to be paid on 26 June 2026 to shareholders of record on 15 May 2026, with ordinary share holders receivi...
BP files 2025 payments-to-governments transparency report
Jun 8, 2026
On 8 June 2026 BP published its consolidated Report on Payments to Governments for the year ended 31 December 2025, complying with UK regulations and Financial Conduct Authority disclosure rules. The filing details how BP captures and discloses ca...
BP Updates Share Capital and Total Voting Rights as of 31 May 2026
Jun 1, 2026
BP p.l.c. reported that as of 31 May 2026 its issued share capital comprised 15,702,499,904 ordinary shares, each carrying one vote, and 12,706,252 preference shares, which carry two votes for every £5 of nominal capital. The company also dis...
BP Executives Acquire Shares Under May 2026 ShareMatch Plan
Jun 1, 2026
On 11 May 2026, several senior BP executives acquired small amounts of BP ordinary shares through participation in the company’s ShareMatch UK Plan, according to disclosures filed for the period ended 31 May 2026. Chief financial officer and...
BP Board Ousts Chair Albert Manifold Over Governance Concerns, Names Ian Tyler Interim
May 26, 2026
BP p.l.c. on 26 May 2026 removed Albert Manifold as chair and director with immediate effect after the board unanimously concluded that serious concerns over governance standards, oversight and conduct made his position untenable. Senior independe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.