In all, the shadow of the Gulf of Mexico accident continues to loom. However, the payment marks another step in the right direction for BP. Its cash generative nature continues to attract the attention of investors, with further value enhancing developments possible. The consensus says buy.
ANDREW WHITTOCK | LIBERUM CAPITAL
Until now [Anadarko] had refused to accept any liability for costs. The settlement represents a positive resolution of a significant uncertainty for BP. Only Transocean and Halliburton are still holding out. The biggest fundamental negative (for us) is that Shell yields 4.9 per cent (better than BP).
RICHARD GRIFFITH | EVOLUTION SECURITIES
The acceptance of partial liability by Anadarko further reduces the likelihood of punitive damages against BP. We continue to believe that most of the issues that have been weighing on BP’s shares are more than discounted in the current valuation of 5.7x 2012 earnings.