BP Upgraded as Oil Spill Finally Resolved

While BP remains on the hook for $23 billion, to be paid over the next 17 years, shareholders now have clarity on the future

Allen Good 18 April, 2018 | 7:01AM

BP is finally getting over the oil spill scandal energy natural resources Gulf of Mexico

Morningstar equity analysts have upgraded their fair value estimate for BP (BP.) to £5 from £4.75 after positive full-year 2017 results and higher short-term oil and gas price forecasts. 

The settlement reached with the U.S. federal government and Gulf states in 2016 was a major step for BP in putting the 2010 Deepwater Horizon accident behind it. While BP remains on the hook for $23 billion, to be paid over the next 17 years, the recognition of a reliable estimate for all remaining liabilities removes a key element of uncertainty for the company.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC305.75 GBX-2.61

About Author

Allen Good  Allen Good is a senior stock analyst covering the oil and gas industries.

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