Does BP have a brighter future than Shell, Tullow Oil and Premier Oil?
Does BP have a brighter future than Shell, Tullow Oil and Premier Oil? The prospects for oil and gas company BP plc’s (LON:BP) (BP.L) share price are relatively positive in my view. I think that BP offers reduced risk compared to FTSE 350 sector peers such as Tullow Oil plc (LON:TLW) (TLW.L) and Premier Oil PLC (LON:PMO) (PMO.L). It is seeking to rationalise its asset base, while improving free cash flow could allow it to pay a higher dividend over the long run. Therefore, while I’m optimistic about BP and the wider sector, I think that Shell may offer less risk and high long-term returns. Although I’m expecting further volatility for the wider sector in the short run, I feel that FTSE 350 oil and gas stocks could be undervalued at the moment, while their strategies could produce improving growth rates in future years.