Citi believes BP PLC (LSE:BP.) could be entering a decisive summer of deal-making, with potential asset sales worth around US$15 billion giving the oil major fresh momentum before a likely autumn Capital Markets Day.
The broker, in a note, pointed to press reports that BP is looking to sell its residual UK upstream position, supporting its view that “the coming few months could see several asset transactions” as the oil company’s new chief executive moves to reshape the group and further reduce leverage.
Citi said the timing could be important, with transactions potentially landing before a Capital Markets Day it expects to be held in September or October.
“In theory, the current energy crisis should make for a good environment for BP to be a seller of non-GCC oil and gas assets,” analysts said.
The bank looked at four possible transactions that have either been referenced by BP or linked by press reports. Together, Citi estimates these could represent “perhaps around $15 B of net value”, equivalent to about 10% of BP’s current enterprise value or one-third of its net debt.