British energy giant, BP plc (BP) announced the appointment of David Lawler as the chief executive officer (CEO) of its U.S. business. The effective date of appointment is Sep 15, 2014. Lawler’s earlier stint as chief operating officer and executive vice president was with SandRidge Energy Inc. (SD).
The move is in sync with the proposed spinoff of BP’s onshore oil and gas assets in the U.S. into a new company. The unit has the equivalent of 7.6 billion barrels of oil across 5.5 million acres and a stake in more than 21,000 wells. The spinoff is expected to be completed early 2015. The new company will still be owned by BP, but will run independently and disclose separate financial results for its business.
London, England-based BP plc is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. It operates in three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate.
In the recently reported second quarter, total production of 2.106 million barrels of oil equivalent per day (MMBoe/d) was down 6% year over year. The company sold liquids for $96.90 per barrel in the second quarter (versus $94.92 in the year-earlier quarter) and natural gas for $5.67 per thousand cubic feet (versus $5.37). Overall price realization rose to $64.90 per Boe from the year-ago level of $61.27 per Boe.
BP expects third-quarter production to be lower than the second quarter primarily due to planned major turnaround activity, mainly in the higher-margin Alaska and Gulf of Mexico regions. However, fuel margins are expected to improve on the back of a lower level of turnaround. This would be offset by weak petrochemical margins.
BP – one of Europe’s leading oil companies by market value – currently carries a short-term Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Weatherford International plc (WFT) and Sanchez Energy Corporation (SN). Both stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment