British energy giant
) is planning to spend roughly $10.0 billion in Egypt in the coming
five years for producing natural gas, as per media reports.
The reports also indicate that the company is planning to restart a
natural gas development located in the north of Alexandria. BP plc
stopped the Alexandria gas project temporarily in 2011 owing to
certain instability issues. The project - which is expected to
serve almost 25.0% of the local gas demand - will likely commence
production by 2017.
U.K.-based BP plc is one of the world's major energy companies,
providing its customers with fuel for transportation, energy for
heat and light, retail services and petrochemical products.
We find the company's strategy of offloading its non-core upstream
properties and its focus on upstream activity as favorable. BP plc
remains confident about the 15 major project startups by 2014 and
the planned commissioning of the Whiting refinery upgrade.
However, the U.S. Environmental Protection Agency (EPA) has barred
BP plc from making fresh contracts with the federal government as
the company was unable to demonstrate proper business integrity
with regard to the 2010 Deepwater Horizon oil spill. The
continuation of such suspension for a longer period may affect the
company's operations and earnings.
BP plc currently retains a Zacks Rank #3 (Hold) implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Clayton Williams Energy Inc.
Kosmos Energy Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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BP PLC (BP): Free Stock Analysis Report
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