BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.

У BP сильный баланс по масштабу бизнеса, но качество прибыли и рентабельность выглядят слабее, чем у типичного лидера отрасли. Выручка остаётся очень крупной и в целом стабильной по годам, что поддерживает устойчивость бизнеса, однако чистая прибыль и операционная прибыль в TTM выглядят слабо, а в ряде периодов были близки к нулю. Маржа валовой прибыли держится на умеренном уровне и постепенно улучшалась по годам, но операционная маржа остаётся заметно ниже отраслевой медианы, что ограничивает потенциал переоценки. ROE, ROA, ROI и доходность на материальный капитал существенно ниже отраслевых ориентиров, поэтому текущая эффективность использования капитала выглядит недостаточной для агрессивного роста оценки. При этом P/S ниже медианы отрасли, что частично компенсирует слабую прибыльность и говорит о более сдержанной оценке по выручке. P/B находится около медианы, а P/FCF лишь немного выше отрасли, то есть рынок не закладывает сильный дисконт, но и не выглядит чрезмерно оптимистичным. Очень высокий P/E на фоне слабого TTM-прибыли выглядит неустойчиво и скорее отражает искажение базы, чем реальную дороговизну, поэтому его нельзя трактовать как полноценный плюс. Долговая нагрузка выше отраслевой медианы, а quick ratio ниже комфортного уровня, что добавляет осторожности, хотя current ratio остаётся приемлемым. Собственный капитал и денежная позиция крупные, что снижает риск баланса, но не компенсирует полностью слабую доходность капитала. Дивидендная доходность снизилась по сравнению с прошлыми периодами, поэтому дивидендный аргумент сейчас слабее, чем был ранее. В сумме фундаментал скорее поддерживает умеренно осторожный взгляд: бизнес масштабный и финансово устойчивый, но качество прибыли, рентабельность и долговая структура не дают оснований для заметного повышения целевой оценки.

BP p.l.c.

BP выглядит устойчиво по масштабу и балансу, но слабая рентабельность, высокий P/E и рост долговой нагрузки ограничивают потенциал переоценки.

Shell plc SHEL has reportedly taken a significant step in re-establishing its presence in Venezuela by signing five agreements with the Venezuelan government to advance strategic oil and gas projects. The agreements mark a new phase in the relationship between the energy giant and the South American nation, highlighting the company’s growing role in Venezuela’s efforts to revitalize its energy sector and attract foreign investment.
The latest deals build on preliminary agreements signed earlier in the year and reinforce Shell’s position as one of the first major international energy companies to capitalize on the country’s renewed investment opportunities.
Loran Gas Field Takes Center Stage
At the heart of the agreements is Shell’s participation in the Loran offshore gas field, a massive reservoir estimated to hold approximately 7 trillion cubic feet (Tcf) of natural gas. The field extends across maritime boundaries shared by Venezuela and Trinidad and Tobago, making it one of the region’s most strategically important gas developments.
Venezuelan officials described the agreement as a historic milestone, as it advances the first phase of the Loran field’s development plan. The project is expected to play a critical role in unlocking Venezuela’s vast offshore gas resources and strengthening regional energy cooperation.
Supporting Venezuela’s Gas Export Ambitions
The Loran project, alongside the 4.2-Tcf Dragon gas field in which Shell is also involved, is expected to pave the way for Venezuela’s entry into offshore gas exports. Initial supplies are expected to be transported to Trinidad and Tobago, where the gas can be processed into liquefied natural gas (LNG) for international markets.
This development could create a new revenue stream for Venezuela while helping monetize the country’s substantial untapped gas reserves. For Shell, the projects offer access to significant long-term gas resources in a region with growing export potential.
Broader Energy Cooperation Beyond Gas
The agreements extend beyond offshore gas development. Shell and Venezuela also reached a technical alliance aimed at expanding production from oilfields in Monagas North. Another pact focuses on procuring equipment and parts designed to reduce gas flaring, supporting operational efficiency and environmental performance.
Additionally, increased oil production linked to Shell’s activities is expected to improve the availability of diluents used in producing Venezuela’s flagship Merey crude blend and supplying domestic refineries.
Broader Industry Implications
The agreements come amid broader geopolitical and economic shifts, including efforts to revitalize Venezuela’s energy sector. They are among the first major expansion deals following reforms aimed at attracting international capital.
At the same time, BP p.l.c. BP is also expected to participate in the Loran gas field and the adjacent Cocuina-Manakin offshore gas project under separate agreements signed with the Venezuelan government in April. BP already has exposure to the region through its Manakin-Cocuina exploration and production license, awarded in 2024. However, U.S. approvals were revoked, prompting BP to lobby for reinstatement.
Chevron Corporation’s CVX joint ventures with PDVSA are already producing approximately 260,000 barrels per day — about a quarter of Venezuela’s total output. In April, CVX also signed an asset swap agreement with PDVSA, expected to support a potential 50% increase in production over the next two years within its existing footprint.The restructuring also positions Chevron to compete more effectively as Venezuela opens its energy sector to increased foreign investment following regulatory reforms.
A Strategic Win for Shell
The latest agreements elevate Shell, currently carrying a Zacks Rank #3 (Hold), to one of the most important partners of Venezuela’s state-owned energy company, PDVSA. Having previously scaled back operations and closed offices in the country, Shell is now emerging as a key participant in some of Venezuela’s most significant energy projects.
With the Loran and Dragon developments moving forward, the company is positioning itself to benefit from future gas exports while strengthening its presence in a resource-rich region undergoing a gradual energy-sector revival. The agreements underscore Shell’s commitment to pursuing attractive growth opportunities and expanding its role in the evolving global energy landscape.
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Shell's Venezuela Return Gains Momentum With Loran Gas Deal

West Texas Intermediate (“WTI”) crude is trading at more than $85 per barrel. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $88.32 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting BP plc's BP exploration and production activities, which generate a significant proportion of its earnings.
The British energy major’s production outlook seems bright, thanks to major discoveries. On its latestearnings call BP mentioned that since the beginning of 2025, it has made 14 discoveries. BP said Bumerangue appears to be a very large oil discovery, estimated at around 8 billion barrels in place, though further appraisal work is needed to determine how much can actually be extracted and commercialized.
Given the prevailing high crude pricing environment and key discoveries, the British energy giant’s overall upstream business outlook, both in the near and long terms, seems highly encouraging.
Will XOM & COP Also Gain From High Oil Prices?
Like BP, Exxon Mobil Corporation XOM and ConocoPhillips COP will benefit from the ongoing strength in oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company, much like other energy giants such as XOM and BP.
The upstream energy giant also has low-cost drilling opportunities across Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks highly profitable.
To provide a glimpse of ExxonMobil’s upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. Hence, XOM is also well-positioned to capitalize on the ongoing high commodity prices.
BP’s Price Performance, Valuation & Estimates
Shares of BP have gained 38.9% over the past year, surpassing the industry’s 35.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.20X. This is below the broader industry average of 6.40X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BP’s 2026 earnings has seen upward revisions over the past 30 days.
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BP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How Elevated Oil Prices are Boosting BP's Energy Business

SLB N.V. SLB announced that its OneSubsea joint venture has been awarded a contract by BP p.l.c. BP to provide a subsea boosting system for the Thunder Horse project in the deepwater Gulf of America. The engineering, procurement and construction (EPC) award follows recent contracts for BP’s Kaskida and Tiber developments, demonstrating continued demand for OneSubsea’s standardized subsea boosting technology across multiple offshore projects.
The EPC contract includes engineering, procurement, construction, manufacturing, testing and project management services. By deploying a common supplier-led solution across several developments, SLB can improve execution efficiency, reduce delivery time and enhance operational reliability. These benefits are expected to generate higher project margins.
The growing adoption of subsea boosting systems can enhance SLB’s future cash flows as operators increasingly seek solutions that extend field life, improve recovery rates and maximize production from existing offshore assets. The latest contract award strengthens SLB’s subsea backlog, reinforces its business model and bolsters its competitive position in offshore production technologies.
Eni and BP currently carry a Zacks Rank #3 (Hold).
The business models of SLB and other players that provide equipment and services to companies are dependent on the capital spending by the upstream players. The upstream players such as Chevron Corporation CVX and YPF Sociedad Anónima YPF and BP are currently enjoying a favorable pricing environment as the West Texas Intermediate (“WTI”) crude oil prices are trading around the $90-per-barrel mark, according to oilprice.com.
CVX currently carries a Zacks Rank #2 (Buy), while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A major integrated energy giant, Chevron maintains a strong presence within the Permian Basin. Supported by excellent upstream performance and ongoing development across its resource base, CVX recorded an international net oil-equivalent output of 1.8 million barrels per day for the first quarter of 2026, up from the prior-year period.
Integrated energy company YPF is using its strong foothold in the Vaca Muerta formation to accelerate production growth. A projected increase in operational activity by YPF in the coming quarters is anticipated to yield higher oil and gas production by the second half of 2026.
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SLB OneSubsea Wins Contract for BP's Thunder Horse Deepwater Project

Exxon Mobil Corporation XOM is trading at a premium, meaning investors are willing to pay more for the stock. On a relative basis, the stock is trading at a 9.92x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 6.42x. BP plc BP and Chevron CVX are trading at 3.20x and 9.72x, respectively.
Image Source: Zacks Investment Research
Given that the integrated energy giant is trading at a premium, what should investors do now? Before getting into it, let’s delve into the company’s fundamentals and overall business environment.
XOM's Permian Advantage: Low Breakeven, Rising Production
ExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
Let’s delve a little deeper into why operating in the Permian, the most prolific basin in the United States, is going to be the game-changer for the integrated energy giant. According to the data from the Federal Reserve Bank of Dallas, the breakeven price for new wells in the Midland, a sub-basin of the Permian, is $69 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $63 per barrel.
With West Texas Intermediate (“WTI”) crude trading at more than $90 per barrel, XOM’s operations in the Permian are likely going to be lucrative as the breakeven costs are lower. Investors should note that on the first-quarterearnings call XOM mentioned that it is staying aligned with its plan to grow production in its most prolific basin to 1.8 million oil-equivalent barrels this year. Thus, high price and increased production are expected to aid XOM’s top and bottom lines.
Robust Balance & Dividend Commitment of XOM
Investors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is 15.4%, which is significantly lower than 29.6% of the industry’s composite stocks.
Image Source: Zacks Investment Research
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
What Should Investors Do Now?
The positive developments are getting reflected in the price chart. In the past year, XOM has jumped 42.8%, outpacing the industry’s 42.1% growth. BP and CVX, two other integrated players in the same space, have gained 45.9% and 33.1%, respectively.
Price Chart
Image Source: Zacks Investment Research
Given this backdrop, although the company’s overall business outlook remains favorable, it may not be ideal for investors to buy the stock at an overvalued price. Hence, investors should wait for a more attractive entry point. However, those who have already invested may continue to retain the stock, which carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Is XOM Worth Betting on at its Premium Price or Should Investors Wait?

Whereas last week was “Jobs Week,” over the next few trading sessions we’ll get “Inflation Week” — particularly on Wednesday morning with a fresh Consumer Price Index (CPI) for May and Producer Price Index (PPI) Thursday morning. Expectations are for inflation to have moderated month over month.
Estimates are currently for +0.5% CPI growth from the prior month, -10 basis points (bps) below the +0.6% last reported. Core CPI is expected to have reached +0.3%, down from +0.4% for April. Year over year is a different story, however: +4.2% on headline would be an advance of +40 bps month over month, while year over year core is anticipated to have ticked up +10 bps to +2.9%.
PPI on headline is expected to be slashed more than in half from the previous month — +0.6% from +1.4% in April — with core estimated at +0.4% from +0.6% prior. Year over year, we don’t see new projections currently, but last month saw some of the highest inflation numbers since late 2022: +6.0% on headline and +4.4% on core. Clearly, anything close to these numbers this week will illustrate an inflation narrative rather unwelcome to our current economy.
Pre-Markets Improving After a Rough Friday
The final trading session of last week is one to forget: the Dow fell -695 points, and it got off easy; the S&P 500 shed -200 points, -2.65%, and the tech-heavy Nasdaq got routed Friday: -1121 points, -4.18% — it’s worst single day of trading since the fallout from tariff “Liberation Day” in April 2025. It was a good day for booking profits in Tech; this morning fills some of those deep craters dug in the market indexes last week.
For instance, memory and data storage chip-maker Micron MU shares are up +7% this morning, after tumbling roughly -13% on Friday, pulling back from its recent $1 trillion market cap. This came after astounding +750% growth in its share price over the past year, as it joins the AI revolution in a big way. Micron is still a Zacks Rank #1 (Strong Buy) this morning.
Hostilities have reportedly ceased between Iran and Israel this morning, after a weekend of launching missiles. Oil prices are up a point and a half or so this morning, but well off the recent highs when it was unclear which direction this war was going to go. Oil companies — especially the integrated “super-majors” — are up this morning, led by BP BP +2.3% at this hour.
Q1 earnings season is essentially over — a week or two after the calendar close of Q2 at the end of this month earnings season will pick back up again — though we do see some late companies posting numbers ahead of today’s open: Campbell’s Soup CPB beat the Zacks consensus by 2 cents to $0.50 per share, Duluth Holdings DLTH reported a much slimmer loss than expected and shares are up +6% on the news, and FuelCell Energy FCEL missed expectations by -20% but the stock is still up. After the close, we’ll hear from Vail Resorts MTN and Trip.com TRIP.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The Campbell's Company (CPB) : Free Stock Analysis Report
FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-markets Rebound After Friday Rout

Monday, June 8th, 2026
Whereas last week was “Jobs Week,” over the next few trading sessions we’ll get “Inflation Week” — particularly on Wednesday morning with a fresh Consumer Price Index (CPI) for May and Producer Price Index (PPI) Thursday morning. Expectations are for inflation to have moderated month over month.
Estimates are currently for +0.5% CPI growth from the prior month, -10 basis points (bps) below the +0.6% last reported. Core CPI is expected to have reached +0.3%, down from +0.4% for April. Year over year is a different story, however: +4.2% on headline would be an advance of +40 bps month over month, while year over year core is anticipated to have ticked up +10 bps to +2.9%.
PPI on headline is expected to be slashed more than in half from the previous month — +0.6% from +1.4% in April — with core estimated at +0.4% from +0.6% prior. Year over year, we don’t see new projections currently, but last month saw some of the highest inflation numbers since late 2022: +6.0% on headline and +4.4% on core. Clearly, anything close to these numbers this week will illustrate an inflation narrative rather unwelcome to our current economy.
Pre-Markets Improving After a Rough Friday
The final trading session of last week is one to forget: the Dow fell -695 points, and it got off easy; the S&P 500 shed -200 points, -2.65%, and the tech-heavy Nasdaq got routed Friday: -1121 points, -4.18% — it’s worst single day of trading since the fallout from tariff “Liberation Day” in April 2025. It was a good day for booking profits in Tech; this morning fills some of those deep craters dug in the market indexes last week.
For instance, memory and data storage chip-maker Micron MU shares are up +7% this morning, after tumbling roughly -13% on Friday, pulling back from its recent $1 trillion market cap. This came after astounding +750% growth in its share price over the past year, as it joins the AI revolution in a big way. Micron is still a Zacks Rank #1 (Strong Buy) this morning.
Hostilities have reportedly ceased between Iran and Israel this morning, after a weekend of launching missiles. Oil prices are up a point and a half or so this morning, but well off the recent highs when it was unclear which direction this war was going to go. Oil companies — especially the integrated “super-majors” — are up this morning, led by BP BP +2.3% at this hour.
Q1 earnings season is essentially over — a week or two after the calendar close of Q2 at the end of this month earnings season will pick back up again — though we do see some late companies posting numbers ahead of today’s open: Campbell’s Soup CPB beat the Zacks consensus by 2 cents to $0.50 per share, Duluth Holdings DLTH reported a much slimmer loss than expected and shares are up +6% on the news, and FuelCell Energy FCEL missed expectations by -20% but the stock is still up. After the close, we’ll hear from Vail Resorts MTN and Trip.com TRIP.
Questions or comments about this article and/or author? Click here>>
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
The Campbell's Company (CPB) : Free Stock Analysis Report
FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
Vail Resorts, Inc. (MTN) : Free Stock Analysis Report
Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New Inflation Numbers Out This Week: CPI, PPI

BP plc BP, the British oil and gas giant, is refocusing its attention on upstream growth to boost long-term shareholder value. The upstream growth strategy is primarily centred on replacing its reserves to counter natural production declines and achieve a 100% reserve replacement ratio by 2027.
BP’s exploration successes have emerged as one of its key growth catalysts. The company announced 14 new discoveries since the start of 2025, including discoveries made in Egypt and Angola in 2026. It has highlighted that several of these discoveries are short-cycle opportunities that can be tied back to its existing infrastructure. This provides major advantages, including faster commercialization and reduced capital requirements to bring them online. BP is prioritizing capital-efficient production growth to help offset production declines.
In addition, beyond the short-cycle developments, BP’s long-term growth outlook is primarily supported by its high-quality position in the Americas. This includes the Bumerangue discovery in Brazil, which is estimated to have 8 billion barrels of resource in place and has the potential to become a long-term growth driver for its upstream business. BP also continues to advance its Gulf of America portfolio with the Paleogene developments, which are expected to provide high-margin production growth over the long term.
Management mentioned that during the early 2020s, the company was not actively focused on exploration. At present, however, BP is prioritizing the addition of new upstream opportunities to its portfolio to replenish produced reserves and move toward its 100% reserve replacement target. The combination of short-cycle developments and long-term growth projectsis expected to support BP’s production growth and cash flow generation in the upcoming years.
Other Energy Sector Peers With Diversified Upstream Portfolios
Chevron Corporation CVX has an unmatched portfolio of high-quality assets in the Permian Basin that continues to drive peer-leading organic growth. Furthermore, the company has a global presence and key international assets, which include premium assets in Guyana, Bakken and the Gulf of America acquired through the Hess acquisition in 2025.
Exxon Mobil Corporation XOM stands out among other industry majors due to its strong upstream presence in several regions across the globe, including the United States, Canada/Other Americas, Asia and Africa. More than 50% of XOM’s oil and gas production comes from high-return, advantaged assets with low production costs. These high-return assets, which include its Guyana and Permian Basin resources, provide a competitive edge over other players and secure a robust production outlook as the company continues to grow total production from them.
BP’s Price Performance, Valuation & Estimates
Shares of BP have gained 49.7% over the past year compared with the industry’s 44.6% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.27x. This is below the broader industry average of 6.5x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BP’s 2026 earnings has remained unchanged over the past seven days.
Image Source: Zacks Investment Research
BP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will BP's Exploration-Led Upstream Strategy Drive Long-Term Growth?

As governments and consumers place greater emphasis on reducing emissions and improving air quality, demand for cleaner transportation fuels is expected to grow. To address the growing demand for cleaner fuels and meet low-carbon fuel standards, Valero Energy Corporation VLO is expanding its low-carbon fuels business through renewable diesel, sustainable aviation fuel (SAF) and ethanol, creating a diversified platform beyond traditional refining.
Valero's low-carbon fuels portfolio is anchored by its Diamond Green Diesel (DGD) joint venture, which has increased renewable fuel production capacity from 160 million gallons per year in 2013 to approximately 1.2 billion gallons per year in first-quarter 2026. Since its inception, DGD has generated more than $3 billion in cumulative EBITDA. Renewable diesel is particularly attractive because it can reduce greenhouse gas emissions by up to 80% while remaining compatible with existing fuel infrastructure.
Valero strengthened its sustainable aviation fuel (SAF) capacity through the Port Arthur project, which can convert up to 235 million gallons of renewable diesel into SAF annually. The project enables airlines to meet strict emission requirements while providing an attractive return that surpasses the company's 25% after-tax internal rate of return threshold.
The refiner operates 12 ethanol plants producing 1.7 billion gallons of ethanol annually, benefiting from low-cost operations, export opportunities and lower-carbon incentives. Together, renewable diesel, SAF and ethanol support long-term cash flow growth and enhance VLO’s ability to capitalize on the growing demand for cleaner transportation fuels.
Are BP & CVX Focused on Reducing Emissions?
BP plc BP and Chevron Corporation CVX are actively implementing strategies aimed at minimizing emissions and improving overall air quality.
BP has developed a diversified renewable energy portfolio across solar, wind and bioenergy through strategic partnerships that enhance growth while limiting capital requirements. BP has also strengthened its presence in renewable natural gas through Archaea Energy, positioning it to benefit from rising demand for lower-carbon fuels.
Chevron is actively cutting emissions by scaling up the production of renewable fuels such as biodiesel, hydrogen and renewable natural gas. To further minimize its carbon footprint, CVX is simultaneously advancing carbon capture, utilization and storage technologies to safely trap carbon dioxide underground.
VLO’s Price Performance, Valuation & Estimates
Valero shares have gained 101.6% over the past year compared with the 60.1% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.87X. This is above the broader industry average of 5.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VLO’s 2026 earnings has remained unchanged over the past seven days.
Image Source: Zacks Investment Research
Valero currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's How Cleaner Transportation Fuels Are Powering Valero's Growth

SLB N.V. SLB has agreed to acquire Tachyus Corp., a Houston-based technology company specializing in AI-driven reservoir modeling and optimization. This acquisition will expand SLB's digital portfolio with advanced physics-based reservoir management capabilities, enabling operators to make faster decisions and enhance hydrocarbon recovery from complex and mature assets.
Tachyus’ Aqueon platform, which has been deployed across more than 7,500 wells globally, combines machine learning with reservoir physics to optimize waterfloods, enhanced oil recovery projects, saltwater disposal optimization for unconventional operations, pressure forecasting and production performance. It evaluates thousands of reservoir scenarios within minutes, allowing operators to adjust development strategies and optimize field performance in real time.
Following the closure of the transaction, SLB plans to integrate Tachyus’ technology into its Delfi digital platform and Lumi data and AI platform, creating a more comprehensive closed-loop reservoir management solution. This integration is expected to enhance operational efficiency, improve recovery rates and strengthen SLB’s position as a leader in digital energy technologies.
The transaction is expected to expand SLB’s exposure to the fast-growing digital technology and AI segment, which offers higher margins than traditional oilfield services. This acquisition will strengthen SLB’s business model and support higher cash flows while enhancing investor appeal.
SLB currently carries a Zacks Rank #3 (Hold).
The business models of SLB and other players providing equipment and services to upstream energy companies are linked to upstream players' capital spending. With West Texas Intermediate (“WTI”) crude oil prices trading around the $90-per-barrel mark, according to oilprice.com, upstream players like Chevron Corporation CVX, YPF Sociedad Anónima YPF and BP plc BP are benefiting from the favorable pricing environment.
CVX and YPF sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is an integrated energy giant with a strong footprint in the Permian Basin. Supported by strong upstream operations and a global resource base, CVX achieved first-quarter 2026 international net oil-equivalent production of 1.8 million barrels of oil equivalent per day, representing an increase from the year-ago quarter.
YPF leverages its extensive footprint in Argentina’s Vaca Muerta to fuel production growth. The company expects increased spending and activity in the coming quarters, which should boost oil and gas production in the second half of 2026.
BP is an energy company that explores, produces, refines and markets oil, natural gas and low-carbon energy solutions globally. The company maintains a steady 2026 capex budget of $13 billion to $13.5 billion. BP reported first-quarter 2026 production of 2,339 thousand barrels of oil equivalent per day, up from the prior-year period. It has a Zacks Rank #3 at present.
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SLB to Expand Digital Portfolio With Strategic Acquisition of Tachyus

Over the past year, BP plc BP has jumped 45.2%, outpacing the industry’s 39.8% growth. It also outperformed Exxon Mobil Corporation’s XOM 43.8% and Chevron Corporation’s CVX 33.3% increases, respectively.
One-Year Price Chart
Image Source: Zacks Investment Research
This reflects investors’ strong preferences for the stock, backed by its solid upstream and refining operations. Should investors bet on the British energy giant right away? To conclude on this, let’s first analyze BP’s business fundamentals.
BP’s Upstream Business Outlook Looks Promising
The price of West Texas Intermediate (“WTI”) crude is hovering around the $90-per-barrel mark. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting BP's exploration and production activities, which derive a significant proportion of its earnings, similar to ExxonMobil and Chevron.
Image Source: The U.S. Energy Information Administration
The British energy major’s production outlook seems bright, thanks to major discoveries. On its latestearnings call BP mentioned that since the beginning of 2025, it has made 14 discoveries. BP said Bumerangue appears to be a very large oil discovery, estimated at around 8 billion barrels in place, though further appraisal work is needed to determine how much can actually be extracted and commercialized.
BP’s Refining Output Adjustment Seems Encouraging
Unlike many refiners, BP is making adjustments in its refinery output to produce the right kind of fuels that are most in demand now. The British energy giant is trying to capture the demand for jet fuel and diesel that are in short supply. Thus, by adjusting the mix of products from its refineries, BP is likely to generate handsome cash flows for its shareholders.
BP already experienced a solid refining business in the March quarter. With a throughput of more than 1.5 million barrels per day, the integrated major touched the mark of the highest quarterly figure in four years.
Is BP Stock a Must Buy Now?
All the positive developments are getting reflected in the price surge of the stock, which we have already noticed in the one-year price chart. Despite the price improvement, BP stock is currently undervalued. The company is trading at a trailing 12-month EV/EBITDA multiple of 3.19x, which is lower than the broader industry average of 6.30x. ExxonMobil and Chevron, two other integrated energy majors, are valued higher at 9.89x and 9.65x, respectively.
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Although investors may prefer to bet on the undervalued BP stock, it is not the ideal time since the integrated firm has Middle East exposure. On its firstearnings call BP indicated that around 100,000 barrels per day of its Middle East volumes have traditionally moved via the Strait of Hormuz. It is to be noted that shipping through the route is disrupted amid the U.S.–Iran military standoff.
Thus, new investors should not rush to bet on the stock right away. Those who have already invested may retain the stock, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	2.37K 14.77
Price/Sales	0.54 1.48
P/B	1.58 1.53
P/FCF	11.06 10.45

Indicator	TTM Median
ROE	0.07 15.20
ROA	0.54 6.69
ROI	0.04 9.04
Net Worth	101.91 1.82
Quick Ratio	0.89 1.07
Current Ratio	1.26 1.27

Indicator	TTM Median
Net Profit Margin	0.03 14.29
Operating Margin	6.57 20.93
Gross Margin	28.34 48.18
Return on tangible equity	0.10 17.48

Indicator	TTM Median
EPS	1.07 0.41
EPS Forecast	1.09 0.36
Revenue	47.74B 220.00M
Gross Profit	12.56B —
EBITDA	3.95B —

BP p.l.c.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue