– BP is the cheapest stock in the sector with a 15% cash return yield.
– Trades significantly below its peers.
– The company is dialing back on investments in renewables to improve shareholder returns. Expected increase in capital returns.
– Macro tailwinds from China re-opening and soft landing of the US economy.
– Set to benefit from LNG volume growth as projects come online + big GOM project coming online (Mad Dog).
– Likely takeover target by $CVX.
– Trades at 3x EBITDA, 5x EPS and upwards of 15% cash return yield (dividends + buybacks).
– Peers $XOM and $CVX are at 6x EBITDA, 10x EPS and 7-8% cash return yield.
Exp. gain: Not specified.
Full write-up (free guest account required):