BP: Cheap, Low-Leveraged, And Positioned For Stronger Earnings

Daniel Jones Investing Group Leader Follow Summary BP p.l.c. remains a Buy, supported by high oil prices, cost-cutting, and ongoing debt reduction initiatives. BP's Q1 2026 revenue rose 11.5% year-over-year, with significant EBITDA growth in the Customers & Products segment. The Castrol divestiture will reduce net debt by $2.87 billion but lower annual EBITDA by over $1 billion, further strengthening BP's balance sheet. BP trades at a discount to peers on cash flow and leverage metrics, with upcoming Q2 results expected to show strong revenue and profit growth. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Adam Bartosik/iStock Editorial via Getty Images It has been a long time since I last wrote an article about BP p.l.c. ( BP ). My last article about the business was published back in February of 2023, with the impetus This article was written by Daniel Jones 37.68K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.