10 Best Global Stocks To Buy Now

6. BP p.l.c. (NYSE:BP)

Number of Hedge Fund Holders In Q2 2024: 38

BP p.l.c. (NYSE:BP) is a British oil giant that is one of the few mega players in the industry that has pivoted to generating energy wind power. The firm’s focus on clean energy and associated technologies, such as hydrogen and carbon capture provides it with the ability to pivot to the industry with time. However, as it focuses on the future, BP p.l.c. (NYSE:BP) has to keep an eye on the present if it’s to keep investors happy. On this front, the firm aims to increase its upstream production in 2024 in order to keep up with peers. Like Shell, BP p.l.c. (NYSE:BP) is also focusing on the natural gas and liquefied natural gas markets (LNG) since these are cleaner fuels compared to other petroleum products. Its performance therefore hinges on successfully penetrating these markets, and BP p.l.c. (NYSE:BP) is also investing heavily in hydrogen production, unlike several other mega oil peers. Additionally, to keep investors happy, the firm has also announced $14 billion in share buybacks until the end of 2025.

BP p.l.c. (NYSE:BP) is also operating in the high growth US Permian region. Here’s what it shared during the Q2 2024 earnings call:

“So we’ll continue to drill out the Permian and gradually fill that system up entirely. We’ll probably hit peak production for liquids in the Permian around 2027, based on the last analysis I did. And the other very interesting thing that we talked about while I was there is, they’re rethinking the Eagle Ford. So we have 500 wells there that have been producing for about a decade. They were fracked a decade ago. Obviously, fracking technology has moved on materially since then. So they’ve gone in and done 50 re-fracks. And the returns on these things are unbelievable. With the new technology on the fracks, you’re getting all kinds of liquid production coming out of them. So we trialed 30. We now have 500 opportunities. The Gordon is working with them on to decide at what pace we fund those.

And the last thing I’d say on the Eagle Ford is, they also started to down space, which is very counter to what you think of in some of these plays that maybe you don’t down space, you’re getting it through laterals. But what they found is, the couple of downspacing wells they’ve drilled have delivered 3,700 barrels of oil a day, which is way above POPs, even what we’re seeing in some of the Permian acreage. So the Eagle Ford is opening back up to us, and it’s this mantra that we always have to think about with resources is, once you think you’re done on recovery factor, have another go at technology and see what happens. And that’s what we’re proving in the Eagle Ford. They used to talk about recovery factors of 7% to 10%. That might resonate with you for the Permian.”