Sunday, February 26, 2012

BP plc - BP

BP p.l.c., stock ticker BP, is one of the largest international oil and gas company's in the world. They operate in more than 80 countries, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products. BP operates in two sectors: Exploration and Production (E&P) and Refining and Marketing (R&M). E&P activities include 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, together with power and natural gas liquids. R&M activities include the supply and trading, refining, manufacturing, marketing and transportation of crude oil, petroleum and petrochemicals products and related services. BP has been around since the early 1900's!


BP Statistics as of 2/26/12
52 week range $33.62 - $49.09
Market cap $148.62B
P/E 5.82
Quarterly Dividend/Dividend yield  0.48%/$4.09
EPS 8.07
Beta 1.20
Institutally Owned 12%


Recent acquisitions:
April 2011 - acquired 83% of Companhia Nacional de Acucar e Alcool.
December 2010 - acquired Verenium’s lignocellulosic biofuels business

BP has weathered the storm from the unfortunate oil spill in the Gulf coast, however they will move on like Exxon did after it's incident. It is highly probable that they will reach a settlement with the United States Government pertaining to the civil and criminal charges in the near future related to the Gulf oil spill. In no way is that a reason to purchase BP. I like BP strictly because of their dividend and what they are now doing in the Gulf. Click here to learn about how BP is helping the Gulf coast.

An additional positive story about BP is that a federal judge in December 2001 ended BP's three-year probation for the negligent discharge of oil in Alaska in 2007. This allows BP to resume drilling in that territory and should provide a psychological lift to the stock as well.

BP pays a healthy 4.09% dividend and given their improving cash flow they should begin raising their dividend once again. Their dividend went from 84 cents to 42 cents on February 9th, 2011. I strongly believe they will aggressively raise their quarterly dividend to get some ground back on where it used to be. I think this stock is a value stock with room for growth and has a healthy growing dividend.

Click here to listen to BP CEO Bob Dudley discussing their 4th quarter 2011 and full year results. They are well positioned to make acquisitions, buy back their own stock, and continue to increase guidance during 2012.

I urge you to visit BP's Investor Relations webpage here, to learn more about this dividend aristocrat. Also, if you are not a believer yet, watch the three videos below, especially the one with BP's CEO Bob Dudley on earning back America trust. Until next time friends, reinvest those dividends and watch your smart investment decisions work for you!

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