NEW YORK (TheStreet) -- Shares of BP (BP) are up 1.33% to $47.83 inn pre-market trade after it was reported that the oil and gas company has tried to remove the administrator of compensation payments under its settlement for the 2010 Deepwater Horizon disaster, accusing him of a "clear-cut conflict of interest" that he had failed to disclose fully, the Financial Times reports..
In a filing to the U.S. court in New Orleans hearing the case over the oil spill in the Gulf of Mexico, BP said emails had recently come to light revealing that Patrick Juneau, the compensation claims administrator, had previously "advocated vigorously on behalf of individual and business claimants seeking compensation from BP for alleged spill-related injuries," the Times said.
The cost of the settlement, which BP originally estimated at $7.8 billion, is now expected to be $9.2 billion or more.
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TheStreet Ratings team rates BP PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."