What's Going On With Oil Giant BP Stock Today?

Elliott Management, a U.S.-based activist hedge fund managing approximately $70 billion in assets, has reportedly acquired a stake in oil giant BP plc BP.

Elliott is advocating for substantial changes at the British oil company to boost its performance, according to a report from the Wall Street Journal.

The hedge fund’s engagement with BP suggests rising discontent with the company’s current path, particularly as BP’s market value trails behind competitors such as Shell and Exxon Mobil, per the report. BP’s leadership has been dealing with elevated debt levels and a declining stock price.

According to Benzinga Pro, BP stock lost over 11% in the last year.

Recently, BP announced 4,700 jobs cut in January, representing 5% of its workforce, and removing over 3,000 contractor positions.

Also Read: Spire Global Lands ~$50M Contract For Canadian Wildfire Detection

The energy giant is planning to streamline its operations and lower expenses as part of a broader effort to save $2 billion by the end of 2026.

Also, BP’s choice to lower its oil and gas production reduction goals for 2030 has sparked debate, although some investors backed the move. In 2020, the company aimed to cut its oil and gas output by 40% by 2030, a target that was ultimately scrapped in October 2024.

For the fourth quarter, BP anticipates a decline in upstream production compared to the previous quarter, with decreases in both oil and gas & low-carbon energy output.

Within the oil production & operations division, the company expects price lags, particularly in the Gulf of Mexico and UAE, to result in an unfavorable impact of $0.2 billion to $0.4 billion on realizations.

BP has been facing history of challenges over the last 15 years, including the Deepwater Horizon catastrophe and the abrupt firing of former CEO Bernard Looney due to personal misconduct, reported Bloomberg.

Price Action: BP shares are trading higher by 6.76% at $34.45 in premarket at the last check Monday.

Read Next: