What is the BP Castrol sale and how much cash will BP receive?

BP agreed to sell a 65% stake in Castrol to Stonepeak at a $10.1 billion valuation. The transaction brings in $6 billion in cash to BP. Management plans to use the proceeds to reduce debt and advance its broader $20 billion asset divestment program, while keeping strategic flexibility for future investments and returns.

How could the sale affect BP’s dividend and buybacks?

Lower debt and interest expense can support steady dividends and ongoing buybacks, provided cash flow remains solid. BP’s dividend yield is 5.66% based on recent data. If the $6 billion is used for deleveraging as planned, that strengthens coverage and offers capacity for shareholder returns without stretching the balance sheet.

What are the key metrics to monitor after the Stonepeak Castrol deal?

Focus on net debt to EBITDA, interest coverage, and overall debt-to-equity. Current figures show 1.26x, 3.80x, and 1.28x, respectively. Also watch updates on the closing timeline, any debt repayment announcements, and management commentary on buybacks and capital allocation in the next earnings update and filings.

Is BP stock attractive after the announcement?

Analysts show a constructive tilt with 10 Buy and 5 Hold ratings and a $41.50 consensus target versus a recent price of $34.31. The deal supports deleveraging, but valuation is mixed with a 58.46 P/E and 18.10 EV/EBITDA. A better entry may follow confirmed debt paydowns and a break above the 50-day average.

Global Market Insights

BP Stock Today: December 26 — $6B Castrol Sale Speeds Deleveraging

ByHuzaifa Zahoor December 26, 2025December 26, 2025

The BP Castrol sale is setting the tone for US trading today. Shares of BP drew attention after the company agreed to sell 65% of Castrol to Stonepeak at a $10.1 billion valuation, bringing in $6 billion in cash. Management plans to use proceeds to cut debt and advance a $20 billion divestment plan. With oil majors focused on balance sheet strength and payouts, this move could improve financial ratios and help sustain dividends and buybacks if cash flow holds up.