BP PLC's (LSE:BP.) corporate strategy will be under intense scrutiny if, as foretold by the Financial Times, CEO Murray Auchincloss prepares to abandon oil and gas production cuts at the company’s investor day.
The move follows pressure from activist hedge fund Elliott Management, which has built a 5% stake in BP.
Auchincloss, CEO for 13 months, has promised a "fundamental reset" but reportedly faces scepticism from investors and BP’s board, according to the FT.
He is also expected to announce at least one major asset sale, with analysts pointing to Castrol, retail operations, or BP’s US shale business.
Elliott argues BP’s previous climate targets destroyed value and wants the company to follow ExxonMobil, Chevron, and Shell in expanding fossil fuel production. If the strategy disappoints, Elliott may push for leadership changes.