British energy giant,
) 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. (
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
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 (
) and Sanchez Energy Corporation (
). Both stocks sport a Zacks Rank #1 (Strong Buy).
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