Stocks For Dad
MF Wildcat's Stock For
Dad
The British Petroleum Company, PLC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BP)") else Response.Write("(NYSE: BP)") end if %> [ADR]
Britannic House, One Finsbury Circus
London EC2M 7BA, UK
Ph: +44-171-496-4000
Fx: +44-171-496-4630
Company
Snapshot
Hi Dad,
It's been a long time, but I still remember that first time you drove me
down to Lexington to watch the Wildcats play a basketball game. For the longest
time, the only kind of Wildcat that I knew was the kind that played hoops
for ol' Coach Rupp. Well, then I grew up and moved to Texas and found out
that they drill these big oil and gas exploratory wells down here that they
call Wildcats, too. And if you do good with the Wildcats you can make lots
of money; imagine that -- somebody other than just Coach Pitino can make
it big off these Wildcats.
Well, one of my favorite Wildcat drillers is not even from Texas though.
It's BRITISH PETROLEUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BP)") else Response.Write("(NYSE: BP)") end if %>. And now that it's Fathers Day,
I thought that you might benefit from my thoughts on this company.
Here's what we're hoping for: BP is what we call one of the major integrated
oils -- producers, refiners, gasoline retailers, etc. Many analysts believe
they are now the premiere stock among the big integrated oils.
BP's fortunes have been on a major upswing with current CEO E.J.P. Browne
who started revamps within the exploration department. That department has
big discoveries to show for it. BP is expecting to grow from producing 1,500,000
barrels per day to 2,500,000 barrels per day. This includes the huge production
in Colombia. The company is a leader in deepwater drilling in the Gulf of
Mexico, and is pioneering activities in the "West of Shetlands" area of the
Atlantic. BP has also announced a string of new field development projects
in Alaska in the last few months. Elsewhere, projects include major ventures
as a part of the Caspian consortium in Asia, offshore Australia, the Girassol
development in Angola, among others.
BP has also achieved a high level of maintainable profitability. BP pioneered
many aggressive approaches to cost-cutting. These include outsourcing deals,
non-productive asset rationalizations and the merger of downstream assets
in Europe with Mobil. BP's refining capacity rationalization efforts have
left it with a portfolio described as "world class." Major chemicals projects
are underway in China, Indonesia, Oman, the Phillipines and Malaysia.
Here's what to look out for: As an oil producer and refiner on an international
scale, the company's prospects are impacted by the commodity price for crude
oil. And there's always the threat of political upheaval in the international
arena. The Colombian guerillas and the government itself could still make
that country unattractive despite the big investment that has been made there.
But, this is your kind of company, dad, and one that I hope you enjoy everytime
you pull up to that BP pump at the local gas station.
Happy Father's Day,
Gary
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