BP Stock Today: December 24 Castrol Stake Sale Nets $6B Cash
The BP Castrol sale headline matters for US investors today. BP is selling 65% of Castrol to Stonepeak at a $10.1B valuation, generating $6B in cash to trim debt and sharpen focus on core oil and gas. Shares of BP recently traded near $34.31, within a 52‑week range of $25.22 to $37.64. We break down deal terms, the Stonepeak Castrol deal implications for earnings and leverage, and what the move could mean for valuation, dividends, and near‑term trading setups.
Why the BP Castrol sale matters now
BP agreed to sell a 65% stake in Castrol to Stonepeak, valuing the unit at $10.1B and yielding BP $6B in upfront cash. Management plans to use proceeds to reduce debt and simplify the portfolio, moving past halfway toward its $20B asset sale target. Early coverage confirms the structure and intent of the transaction WSJ.
After the BP Castrol sale, BP retains a 35% minority stake, while Stonepeak gains control. The move signals a tighter focus on upstream and refining, which can lift returns when oil prices are firm. This also reduces capital needs in lubricants. UK media reported the structure and $6B consideration tied to a Castrol $10.1B valuation BBC.
What it could mean for BP stock
BP stock traded around $34.31, down 0.77% on the day, with a 52‑week range of $25.22 to $37.64. The shares yield about 5.66%, while the TTM P/E is 56.25 given depressed earnings. Price sits below the 50‑day average ($35.29) but above the 200‑day ($32.71). Investors weighing the BP Castrol sale may see improved balance sheet strength as a near‑term positive.
Analysts show 10 Buy and 5 Hold ratings (no Sells), implying a Buy consensus. The target median is $40.50 and consensus is $41.50, with a high of $51 and low of $29. If the BP Castrol sale accelerates deleveraging, the gap to targets may narrow. Still, execution and commodity moves will drive whether re‑rating unfolds.
Balance sheet and cash flow snapshot
Key readings include debt‑to‑equity of 1.28, interest coverage of 3.80, and a current ratio of 1.19. BP $6B proceeds should cut net debt and interest costs, improving flexibility for buybacks or targeted capex. The BP Castrol sale also lowers portfolio complexity, which can help management focus on higher‑return barrels and disciplined capital allocation.
Operating cash flow per share is $9.40 and free cash flow per share is $4.13. Dividend yield stands near 5.66% with DPS of $1.9434. The payout ratio appears elevated due to weak recent earnings, so debt reduction from the BP Castrol sale is helpful. Sustaining dividends and selective growth spend will hinge on oil prices and margin trends.
Near-term setup, technicals, and catalysts
RSI is 43 (neutral), MACD is negative (‑0.46 vs ‑0.30 signal), and ADX is 23. Price is below the middle Bollinger band ($35.35) and near the Keltner midline ($34.98). Upper bands near $37.53 mark resistance, with support around $33.17. The BP Castrol sale headline can add interest, but trend confirmation is still needed.
Our models show near‑term projections around $37.15 monthly and $44.18 quarterly, while longer‑term paths depend on crude pricing and execution. Next earnings are scheduled for February 10, 2026. The Stonepeak Castrol deal is subject to customary approvals. Watch oil prices, integration governance, and how quickly BP deploys cash to cut debt and boost returns.
Final Thoughts
For US investors, the BP Castrol sale delivers clean, near‑term value: $6B in cash, a simpler portfolio, and a clearer tilt back to core oil and gas. That can support deleveraging and, in time, stronger buyback or dividend capacity. Shares trade below the 50‑day average and carry a healthy yield, but the technical trend is not yet strong. Actionable takeaway: consider a staged approach. Track closing of the Stonepeak Castrol deal, debt reduction progress, and any buyback updates alongside oil price trends. If execution stays tight and crude holds firm, the gap to Street targets could narrow in coming months.
FAQs
BP is selling a 65% controlling stake in Castrol to Stonepeak, implying a Castrol $10.1B valuation. BP receives $6B in cash and keeps a 35% minority interest. The deal aims to reduce debt and streamline the portfolio while maintaining exposure to the lubricants business through the retained stake.
It is positive if BP uses the $6B cash to lower debt and interest costs, then channels savings into buybacks or high‑return projects. The move simplifies operations and reinforces a core oil and gas focus. Execution, timing of proceeds, and crude prices remain the main variables to watch.
Management signaled debt reduction as the priority. Lower leverage and interest expenses can improve flexibility for dividends and buybacks. Investors should also watch for targeted capex in core upstream and refining. Clear updates on timing and balance sheet impacts will be key over the next few quarters.
Key risks include weaker oil prices, slower‑than‑expected deal closing, and limited synergy benefits. Elevated payout relative to earnings also limits flexibility if macro weakens. Monitoring leverage metrics, interest coverage, and capital returns will help judge whether the transaction delivers the expected improvements.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
