CHICAGO, Aug. 20, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include BP Plc (NYSE:BP), Chevron Corp. (NYSE:CVX), ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell Plc (NYSE:RDS.A) and Tesoro Corporation (NYSE:TSO).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
BP Shops Gulf Assets for $7.9B
BP Plc (NYSE:BP) plans to offload a group of Gulf of Mexico (GoM) oilfields, reflecting its effort to raise capital while divesting its assets following the 2010 catastrophic oil spill in the region. According to a Bloomberg report, the company is looking for around $7.9 billion (before tax payments) for the oilfields.
The to-be-sold properties include the Horn Mountain, Holstein, Diana Hoover and Ram Powell fields with proven reserves of about 120 million barrels of oil. During the first quarter, these fields generated 58,000 barrels of oil.
The deal is all part of BP's plan to retain its flexibility while reshaping its U.S. operations by releasing up to 5 billion to 6 billion in cash, after taxes, to pay down its liabilities. Prospective bidders could include major U.S. energy companies like Chevron Corp. (NYSE:CVX) or ExxonMobil Corp. (NYSE:XOM).
BP − the second largest oil company following Royal Dutch Shell Plc (NYSE:RDS.A) − remains committed to continue investing at least $4 billion annually in the Gulf region over the next decade.
The GoM region marks the most profitable area in BP's portfolio and hence the company remains upbeat on fields like Thunder Horse, Atlantis, Mad Dog and Na Kika. Presently, six rigs remain operational in the region and BP expects to have eight by the end of 2012.
Recently, BP plans to sell its California oil refinery and 800 statewide gas stations to refining giant Tesoro Corporation (NYSE:TSO) for $2.5 billion. This brings its total divestitures to about $26.5 billion since the announcement of the divestiture program in 2010.
We believe the company's strategy of offloading its non-core upstream properties will prove beneficial over time while creating a portfolio with stronger growth from a smaller base. Additionally, BP's focus on a string of upstream activities in high margin areas like the GoM, Angola, the North Sea, Brazil, Australia and India bode well for its future growth.
BP retains a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Share this article