BP Stock Today: December 28 — Stonepeak Castrol Deal Nets $6B
BP Castrol stake sale headlines today as BP sells 65% of Castrol to Stonepeak, raising US$6.0 billion at a US$10.1 billion valuation. BP will keep a 35% stake and commercial ties. Management signals proceeds will support debt reduction and core oil and gas growth. For Australian investors, this move may improve balance sheet strength and payouts while keeping exposure to Castrol’s brand. We explain the Stonepeak Castrol deal, the BP deleveraging plan, the asset divestment 2026 timeline, and what to watch next.
Deal terms and timeline
Stonepeak will buy a 65% interest in Castrol from BP for US$6.0 billion, valuing the lubricants business at US$10.1 billion. BP retains 35% and long-term commercial agreements. The buyer targets growth in mobility, industrial, and EV fluids. The parties expect staged completion subject to approvals. See the announcement from Stonepeak source and coverage by the BBC source.
The companies guide to close by end-2026. Approvals span multiple jurisdictions and require standard antitrust clearances. BP flagged potential follow-ons, including a Castrol India mandatory tender offer (MTO) once control changes, which could shift local ownership. Investors should expect milestone updates through 2026 as the BP Castrol stake sale moves from signing toward completion and integration planning.
Balance sheet and shareholder impact
BP says cash will support debt reduction. Key metrics: debt-to-equity 1.28, interest coverage 3.80, and dividend yield about 5.69% (TTM). Free cash flow yield is about 2.01%, so deleveraging matters for payout durability and buybacks. The BP deleveraging plan from the BP Castrol stake sale could lower interest costs and lift flexibility for capex and returns.
On latest data, BP trades at a P/E of 58.23 and price-to-book of 1.52, with EV/EBITDA near 18.05. These reflect depressed EPS and macro mix more than pure growth. If the Stonepeak Castrol deal de-risks balance sheet and steadies cash flows, multiples could compress. Still, valuation depends on oil prices, refining margins, and execution through asset divestment 2026.
What ASX-focused investors should watch
BP’s ADR last traded at US$34.31, versus the 50-day average of 35.31 and 200-day of 32.72. RSI sits near 43, and Bollinger lower band is ~33.17. Street shows 10 Buys, 5 Holds, and a consensus target of US$41.5 (range US$29–51). Next earnings is 10 Feb 2026. Keep the BP Castrol stake sale updates in your diary.
Watch regulatory reviews, financing conditions, and the Castrol India MTO. Slower closing could delay debt reduction and buyback decisions. Oil prices, refining margins, and FX also drive returns for Australians. We would track approvals through 2026, progress on the BP deleveraging plan, and any portfolio actions linked to asset divestment 2026 milestones.
Final Thoughts
The BP Castrol stake sale delivers US$6.0 billion of cash and keeps a strategic 35% interest, aiming to reduce debt and refocus on core energy operations. For Australian investors, this can support dividends, lower financing costs, and simplify BP’s story while preserving upside from Castrol’s brand. Near term, price action may track deal milestones and oil markets. Consider scaling entries near technical support, monitor consensus target of US$41.5, and watch regulatory updates, including the Castrol India MTO. If closing stays on track into 2026, the Stonepeak Castrol deal could be a clean catalyst for balance sheet strength and steadier shareholder returns.
FAQs
BP agreed to sell 65% of Castrol to Stonepeak for US$6.0 billion, valuing the business at US$10.1 billion. BP keeps a 35% stake and commercial agreements. The move is aimed at paying down debt and sharpening focus on core oil and gas. Closing is targeted by end-2026, subject to approvals.
The cash can reduce net debt, lower interest costs, and improve financial flexibility. With a dividend yield near 5.7%, healthier leverage supports payout visibility and potential buybacks. Final capital returns will still depend on oil prices, refining margins, and the timing of deal completion and regulatory approvals.
Key risks include regulatory approvals across multiple markets, execution of separation and service agreements, and funding terms for the buyer. A delay would push back debt reduction and capital return decisions. There is also the Castrol India MTO process, which may change local ownership and timing considerations.
Track official updates on approvals and any Castrol India MTO announcement. Watch BP’s ADR price versus technical levels and the consensus target of US$41.5. Oil prices, FX, and dividend guidance will drive total returns for Australians more than headlines. The next reported earnings date is 10 February 2026.
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.
