This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why BP Made Concessions

The math of the decisions made by BP on Wednesday, and the cash on hand question, brought Grote back around to same fundamental decision made by BP on how to play the politics and market aspects of the crisis in tandem.

"We believe that there is enough uncertainty around the wider context that it is important that we run our business in a prudent fashion, therefore, operate with a focus on generating more cash ... while there is uncertainty out there, the company believes it is prudent to bolster the balance sheet to address uncertainties that might exist in the future and we hope you all agree that it is a cautious approach but a prudent approach."

Grote's "hope" was the biggest unresolved question on the call, but not the only one.

The BP CFO was also asked whether any of the other companies with liability in the oil spill, such as Transocean (RIG) or Anadarko Petroleum (APC) would be subject to the decisions made on Wednesday by BP.

An analyst questioned whether BP had the right to make these decisions without consulting the other companies, if those companies were to be required to make financial commitments.

The BP CFO couldn't speak as to the other companies idea of a "prudent response" but he did make it seem as if these companies were far from off the hook, saying, "We believe the expenditures we are making are appropriate expenditures in response to liabilities, and I expect partners to meet obligations also."

In opening remarks to be made in Capitol Hill testimony on Thursday morning, BP CEO Tony Hayward will say "A number of companies are involved, including BP."

It's notable that four of the seven items that make the BP CEO's short list of potential causes to investigation in the oil spill are related to the blowout preventer, a device not made by BP, but by Cameron International (CAM).

-- Reported by Eric Rosenbaum in New York.

RELATED STORIES:




Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs