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BP Increases Dividend and Announces Repurchases on Strong Q2 and Improved Outlook

Allen Good, CFA Sector Strategist

Analyst Note

| Allen Good, CFA |

On the back of improved earnings, a stronger financial position, and a brighter market outlook, BP announced it would increase its dividend by 4% and repurchase $1.4 billion in shares during the third quarter based on first-half surplus cash flow. Moving forward, it plans to increase the dividend 4% annually through 2025 and repurchase $1 billion worth of shares, assuming oil at $60 a barrel. These amounts do not include the annual $500 million to offset employee stock issuance.

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Company Profile

Business Description

BP is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2019, it produced 2.1 million barrels of liquids and 7.9 billion cubic feet of natural gas per day, including volumes from its 20% ownership interest in Rosneft. At year-end 2020, reserves stood at 18.0 billion barrels of oil equivalent, 59% of which are liquids. The company operates refineries with a capacity of 1.9 million barrels of oil per day.

1 St James's Square
London, SW1Y 4PD, United Kingdom
T +44 2074964000
Sector Energy
Industry Oil & Gas Integrated
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 63,827