BP plc (BP) Could See 70% Jump in Market Cap Should it Split Up
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BP plc (NYSE: BP) could see an incredible jump in value should execs try to mimic peer ConocoPhillips (NYSE: COP) and split into two groups.
As cited in a Bloomberg story Monday morning, BP plc could unlock as much as $100 billion in value should the company split into separate refining and marketing operations from its upstream business.
Conoco saw a jump on July 14th after making it's split announcement. Shares have since given back much of the gains.
One analyst from JPMorgan Cazenove thinks BP's assets are valued at about £8 per share for a potential market cap of $248 billion. BP currently boasts a market cap of $147 billion, leaving plenty of room to appreciate. The 40 percent discount on the total value of its assets is much deeper than the 27 percent experienced industry-wide, according to JPMorgan.
BP has also lagged behind peers this year, rising just one-percent, far behind the 13 percent gain realized by Royal Dutch Shell (NYSE: RDS-A).
Shares of BP are up modestly Monday morning.
As cited in a Bloomberg story Monday morning, BP plc could unlock as much as $100 billion in value should the company split into separate refining and marketing operations from its upstream business.
Conoco saw a jump on July 14th after making it's split announcement. Shares have since given back much of the gains.
One analyst from JPMorgan Cazenove thinks BP's assets are valued at about £8 per share for a potential market cap of $248 billion. BP currently boasts a market cap of $147 billion, leaving plenty of room to appreciate. The 40 percent discount on the total value of its assets is much deeper than the 27 percent experienced industry-wide, according to JPMorgan.
BP has also lagged behind peers this year, rising just one-percent, far behind the 13 percent gain realized by Royal Dutch Shell (NYSE: RDS-A).
Shares of BP are up modestly Monday morning.
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