BP Earnings: Pleases Market With Strong Results and Repurchase Rate Increase; Shares Cheap

BP's fourth-quarter earnings slightly exceeded market expectations even as they fell from the year before, due to lower oil and gas prices and weaker refining margins. Trading was a mixed bag with oil trading weaker but gas and marketing trading results stronger than last year. Underlying replacement cost profit fell to $3.0 billion from $4.8 billion a year ago while operating cash flow fell to $9.4 billion from $13.6 billion the year before. Production increased 2.4% to 2,320 barrels of oil equivalent per day from the year before as strong bpx performance offset lower gas volumes from natural decline in Egypt. Production grew 2.6% for the full year and management expects slightly higher volumes in 2024. Our fair value estimate and moat rating are unchanged.