BP stock performance

BP (BP) announced its 4Q16 earnings on February 7, 2017. That day, BP stock opened at $34.80, which was lower than the previous day’s close of $35.80. It saw a high of $34.90 that day and a low of $34.20. Eventually, BP closed at $34.40, about 4.0% lower than its previous day’s close. The fall in BP stock price is apparently because the company missed its 4Q16 estimates.

BP’s peers also fell that day. ExxonMobil (XOM), Chevron (CVX), and Royal Dutch Shell (RDS.A) fell 0.60%, 1.4%, and 1.1%, respectively.

Crude oil prices fell 1.6% on February 7. However, natural gas prices rose. The broader market indicator, the SPDR S&P 500 ETF (SPY), remained flat that day. SPY has a ~7.0% exposure to energy sector stocks, including XOM and CVX.

How Did BP Stock Perform after Its Earnings Release?

BP’s 4Q16 update

BP’s organic capex (capital expenditure) for 4Q16 was $4.5 billion compared to $5.5 billion in 4Q15. BP expects organic capex for 2017 to be $16.0 billion–$17.0 billion, which is in line or marginally higher than its 2016 organic capex of $16.0 billion.

In BP’s 4Q16 press release, chief executive Bob Dudley said, “With our Deepwater Horizon financial liabilities now substantially behind us, BP is fully focused on the future. You have seen that focus in the string of strategic portfolio additions during the last two months of the year. From increasing gas interests and renewing long-term low-cost oil to expanding our retail operations – these investments will generate significant long term value for our shareholders. We start this year with considerable momentum – and a sense of disciplined ambition. We have laid the foundations for BP to be back to growth.”

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