NEW YORK (TheStreet) -- Shares of BP Plc (BP) are lower by about 1% to $50.85 in pre-market trade as the oil and gas company faces billions of dollars in additional payments after failing to convince an appeals court that the company is being forced to pay claims that aren't directly related to the 2010 Gulf of Mexico oil spill, Bloomberg reports.
The decision leaves BP two choices: Pay claims the company calls "fictitious," or appeal to the U.S. Supreme Court.
A three-judge panel of the U.S. Court of Appeals in New Orleans earlier rejected BP's view that the claims administrator for the company's $9.2 billion settlement had misinterpreted the agreement and was paying for economic losses that weren't caused by the spill. BP yesterday lost its bid for reconsideration by the full appeals court., Bloomberg notes.
TheStreet Ratings team rates BP PLC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."