BP SAYS WILL TREAT RETAINED STAKE IN CASTROL AS EQUITY ACCOUNTED INVESTMENT, DOES NOT EXPECT TO GET EARNINGS OR RECEIVE DIVIDEND IN SHORT TO MEDIUM TERM
BP SAYS USING $6 BLN IN AFTER-TAX PROCEEDS FROM CASTROL TRANSACTION TO FURTHER REDUCE FINANCIAL OBLIGATIONS; FOLLOWING TWO-YEAR LOCK-UP PERIOD, BP HAS OPTIONALITY TO SELL ITS 35% STAKE IN CASTROL
$SHEL and $XOM are exploring an $8B sale of joint venture Infineum to refocus on core energy operations. $XLE
Infineum:
Specialty chemical maker generating up to $800M in annual EBITDA
The prospective deal follows $BP's $10B sale of its Castrol lubricants business last year.
PEG ratio:
Shell = 1.10, with a lower enterprise value multiple
ExxonMobil = 1.33
Seeking Alpha Quant Ratings:
Shell = Hold
ExxonMobil = Hold
$CVX = Strong Buy
Shedding non-core chemical assets frees capital for high-return upstream oil and gas development across both balance sheets.
Is shedding chemicals the right move for Big Oil?