Company report
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25 Pages

BP corporate report

BP corporate report

Report summary

BP's ongoing pursuit of its long-held mantra of ‘value over volume’ underpins a strategy focused on capital discipline. This is flowing through to improved performance as the company looks to balance organic cash inflows with outflows in 2017 at around US$50/bbl to US$55/bbl. This is in line with our estimates.

A more balanced approach to longer-term growth will see investment in higher-value organic opportunities take precedence over greenfield project sanctions, at least in the near-term. Exploration will be de-emphasised in a move to a broader growth strategy that will likely also include the capture of discovered resource opportunities and small-scale M&A.

Yet this strategic progress has not translated into a market re-rating. We calculate that BP is trading at a 14% discount to our base case NPV,10 valuation of the business as it appears to battle a perception that relative to peers it is not well-positioned for longer-term growth.

What's included?

This report includes 2 file(s)

  • BP corporate report PDF - 1.93 MB 25 Pages, 8 Tables, 33 Figures
  • BP Corporate Report.xls XLS - 3.76 MB

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
    • SWOT analysis
  • Strategy
    • Recent strategic moves
    • Portfolio snapshot
    • Strategic priorities
      • 1. Project execution to deliver portfolio transition to integrated gas
      • 2. Maintaining the growth momentum
      • 3. Shrinking the cost base
      • 4. Reinvigorating the USL48 portfolio
      • 5. Expanding the LNG trading portfolio
      • 6. Executing the divestment programme
      • 7. Implementing a balanced growth strategy
  • Financial health
    • Net debt and gearing outlook
  • Investment
    • Legacy assets
    • Development pipeline
  • Resources, reserves and production
    • Resources and reserves overview
    • Production overview
  • Key success factors
  • Economic assumptions
    • Economic assumptions

In this report there are 41 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Benchmarking: share price performance
    • Benchmarking: market premium / discount to WoodMac NPV,10
    • Strategic fit of upstream regions
    • Benchmarking: NPV,10 by resource theme
    • Benchmarking: exposure to resource themes (weightings versus Majors' average)
    • Benchmarking: development spend intensity
    • Benchmarking: evolution of 5-year production CAGR
    • Strategy: Image 8
    • Strategy: Image 9
    • Strategy: Image 10
    • Strategy: Image 11
    • Strategy: Image 12
    • Strategy: Image 13
    • Strategy: Image 14
    • Strategy: Image 15
    • Strategy: Image 16
    • Strategy: Image 17
  • Financial health
    • Financial health: Image 1
    • Financial health: Image 2
    • Net debt outlook
    • Benchmarking: corporate free cash flow outlook
  • Investment
    • Investment: Image 1
    • Investment: Image 2
    • Investment: Image 3
    • Investment: Image 4
  • Resources, reserves and production
    • Resources and reserves detail (including Rosneft and PAE)
    • Resources, reserves and production: Image 2
    • Resources, reserves and production: Image 3
    • Production outlook (includes Rosneft and PAE)
    • Resources, reserves and production: Image 5
    • Resources, reserves and production: Image 6
  • Key success factors
    • Top legacy assets (excluding Rosneft)
    • Key growth assets (excluding Rosneft)
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high, and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Economic assumptions: Table 5
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