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
TheStreet Open House

Betting on BP

Stock quotes in this article: BP, XOM, RDS.A, STO

Note: This piece has been updated from 11:07 am Tuesday to include new text throughout.

NEW YORK (TheStreet) - BP (BP) may be a good bet despite all the bad news surrounding the company.

Earlier today, the major British oil company reported a 20% drop in first-quarter earnings. The company still hasn't recovered from the Gulf of Mexico oil disaster, and it's embroiled in Ukraine's crisis, as yesterday Obama administration put the name of the president of Rosneft, BP's partner in Russia, on the sanctions list. BP owns a 20% stake in state-controlled Rosneft.

But BP's American depositary receipts trade at just 6.7 times trailing earnings, and the company is increasing its dividend and promising more stock buybacks. BP raised its first-quarter dividend to 9.7 cents a share from 9 cents last year and said it would use asset sales to pay for more stock buybacks. 

The company is approaching the end of its $8 billion buyback program. So far, it has spent nearly $7.6 billion on repurchasing shares. With a promise of more buybacks, the company will likely announce a new program in the near future.

BP's adjusted profit dropped by 23.5% from last year to $3.23 billion, better than analysts' consensus estimate of $3.1 billion, according to data compiled by Thomson Reuters. Earnings in the upstream division, which includes exploration and production, tumbled 22.8% on the back of asset sales and non-cash charges. Profit at its downstream, or refining and marketing, division fell 38%.

Although the company's actual net profit has fallen sharply from $16.86 billion in the first quarter of 2013 to just $3.53 billion in the previous quarter, last year's results also included a $12.5 billion gain from the sale of an asset.

1 of 3

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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

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