BP's Many Bumps In The Road
We have said it before, and we will say it again. BP has encountered numerous issues in the past few years, and they just keep coming. They have recently seen decreased production rates due to the lack of production in the Gulf. The Trefis Team estimates their production to remain the same with a stock price of about $55. Here is their explanation.
"Upstream activity driving growth but hit by production declines
Despite declines in production volumes, high oil prices are helping BP generate a strong cash flow. Taking into account the divestments and acquisitions, BP’s production volumes fell 7% over the same period last year. However, there has been significant growth in exploration and development with the company completing its purchase of 10 blocks in Brazil from Devon Energy and also ratifying an agreement that would allow it to jointly explore the Azerbaijan sector of the Caspian Sea.  BP was also awarded 4 deepwater blocks in Australia and completed the purchase of a 30% stake in the 23 oil and gas production sharing agreements run by Reliance Industries in India."
Read the entire article here: http://turnkeyoil.com/2011/08/06/bps-many-bumps-in-the-road/