#2 - B.P. PLC (NYSE:BP)
B.P. PLC (NYSE: BP) - Free cash flow is also the key to making your decision about whether to own BP. In 2008, the company was able to generate massive profits and had over $15 billion in free cash flow. In the last 12 months ending in August 2018, BP was reporting $6.25 billion in positive free cash flow, which while less than half of its record total, was significantly higher than the company’s positive free cash flow for all of 2017. And when you consider that the company had a negative free cash flow in 2016, the trend is positive. The potential for even higher free cash flow that will come from higher oil prices combined with an attractive dividend yield (currently about 5.4%) is a key reason analysts are becoming more bullish about BP. The company is also projecting a boost to their free cash flow through their acquisition of shale assets from BHP Billiton. These assets, which span almost 500,000 acres of oil-producing shale, will be capable of generating the equivalent of 190,000 barrels of oil per day. And the most positive sign for investors is that most of the company’s free cash flow projections are with oil prices around $55/barrel. If they stay at current levels above $70/barrel or higher, these numbers may be low, making the stock even more attractive.
About BP
BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil.
Read More - Current Price
- $29.52
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $42.73 (44.7% Upside)
