Latest news with #divestment
Yahoo
21 hours ago
- Business
- Yahoo
BP Sells US Wind Portfolio In $20 Billion Divestment Push
BP plc (NYSE:BP) announced Friday that it will sell its entire U.S. onshore wind energy portfolio to LS Power, a New York-based energy infrastructure firm. This move is part of a broader strategy to streamline operations and prioritize targeted low-carbon investments. The deal covers 10 wind farms across seven states with a total capacity of 1.3 gigawatts. This move is part of BP's $20 billion divestment plan, which aims to refocus capital allocation. William Lin, executive vice president for gas and low carbon energy at BP, said the assets and workforce were strong, but the company concluded that 'we are no longer the best owners to take it forward.' He expressed confidence in LS Power's ability to scale the wind business while supporting bp's transitioning staff. Also Read: LS Power plans to integrate the wind projects into its clean energy portfolio, which already spans 21GW of power generation and extensive transmission infrastructure. Paul Segal, CEO of LS Power, described the acquisition as a strategic expansion to meet rising energy demand through well-contracted renewable assets. The sale is expected to close by year-end, pending regulatory approvals. So far in 2025, BP has completed or signed $1.5 billion in divestments and aims to hit $3–4 billion by year-end, with further updates due in its second-quarter earnings report. This decision follows BP's recent warning about a potential earnings dip tied to sliding oil prices, highlighting the company's pivot toward more resilient and efficient operations. Investors may also consider the iShares Global Clean Energy ETF (NASDAQ:ICLN) and the First Trust Global Wind Energy ETF (NYSE:FAN) for broader exposure. Price Action: At the last check on Friday, BP shares were trading higher by 0.31% to $32.19 premarket. Read Next:Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BP (BP): Free Stock Analysis Report This article BP Sells US Wind Portfolio In $20 Billion Divestment Push originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
a day ago
- Business
- Yahoo
BP to sell US onshore wind business to LS Power for undisclosed sum
By Yamini Kalia and Raechel Thankam Job (Reuters) -BP has agreed to sell its U.S. onshore wind business to U.S.-based LS Power, as part of its ongoing divestment strategy, the energy major said on Friday, without disclosing a deal value. bp Wind Energy will be owned and operated under power and energy-focused investment and operating company LS Power's Clearlight Energy. BP has come under criticism from investors for its underperformance in recent months, leading to a strategy revamp with promises to cut debt, increase cash flow and a major pivot back to oil and gas after an ill-fated foray into renewables. The company is targeting $3 billion to $4 billion in disposals by the end of this year. It has pledged to divest $20 billion worth of assets by 2027 under CEO Murray Auchincloss' plans. "The absence of consideration in the press release is unusual given the potential size of the transaction," HSBC analyst Kim Fustier said. "This may suggest that the portfolio could be worth less than typical multiples for onshore wind assets," Fustier said, adding that another disposal will likely be needed to reach the disposal target this year. BP struck a deal with Apollo Global Management in March to sell its stake in a firm invested in the TANAP gas pipeline linking Azerbaijan and Turkey for $1 billion. The deal comprises 10 operating wind assets with a combined gross generating capacity of 1.7 gigawatts, BP said. The acquisition will increase Clearlight Energy's operating fleet to about 4,300 megawatts, LS Power said. Shares of the London-listed company were up 1.9%, with other energy companies also tracking a rise in oil prices.
Yahoo
a day ago
- Business
- Yahoo
BP sells American wind business to LS Power as it continues its renewable retreat
BP will sell its U.S. onshore wind business to New York-based LS Power, as the Big Oil giant continues to divest from much of its renewable energy assets amid financial challenges. The anticipated sale, announced July 18 for an undisclosed sum, meshes with BP's new strategy of doubling down on fossil fuel production while cutting overall costs, especially in clean energy investments. It includes ownership stakes in 10 U.S. wind farms with a combined gross capacity of 1.7 gigawatts, roughly enough to power 1.3 million homes. 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalize and optimize our portfolio to generate value,' said William Lin, BP executive vice president for gas and low-carbon energy, in a statement. 'The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.' Amid struggling stock performance and increased investor activism, BP announced in February it would divest about $20 billion in assets through 2027, including up to $4 billion in 2025. The company said it would also be investing nearly 20% more per year in oil and gas production. Earlier this month, BP said it would sell its network of 300 fueling stations in the Netherlands—also for an undisclosed price—to the Dutch business Catom. The company plans to sell its retail fueling business in Austria as well, and is also divesting a 50% stake in its Lightsource solar business and selling much of its global offshore wind business through a new, fifty-fifty joint venture with Japanese utility JERA. BP has already sold a $1 billion stake in the TANAP gas pipeline from the Caspian Sea to Apollo Global Management. A strategic review of its Castrol lubricants business is ongoing. Castrol alone is worth close to $8 billion, according to analyst estimates. With BP and archrival Shell both now London based, long-rumored reports escalated in late June that Shell would enter early talks to buy BP in what would be the biggest energy deal this century—if not ever. However, Shell quickly denied any such negotiations, and BP has declined to comment. BP appointed former Shell CFO Simon Henry to its board in July—three months after longtime BP chair Helge Lund said he planned to step down. The renewable energy business in the U.S. is facing additional headwinds from the Trump administration's opposition to wind and solar power, including the recent rapid phasing out of tax credits for clean energy construction through the president's new mega-spending legislation. But BP's loss is LS Power's gain. The New York renewable energy developer touted the addition of the wind farms to its 21-gigawatt portfolio of power on Friday as a major coup for the company. 'LS Power's mission is to solve complex energy problems to improve the world and make lives better by developing a cleaner, more reliable, and affordable energy ecosystem, and today's announcement represents a material investment in reaching that goal,' said LS CEO Paul Segal in a statement. The deal, which is expected to close by the end of 2025, includes wind farms in Colorado, Hawaii, Idaho, Indiana, Kansas, Pennsylvania, and South Dakota. The biggest footprints are in Indiana and Kansas. LS will operate the BP assets under its Clearlight Energy portfolio company. This story was originally featured on
Yahoo
a day ago
- Business
- Yahoo
BP Sells U.S. Onshore Wind Assets, Realigns Focus on Oil & Gas
BP plc BP, a British oil and gas giant, has entered into an agreement to divest its U.S. onshore wind business to LS Power, a U.S.-based energy firm. This move is part of BP's 'strategic reset', announced in February 2025, to shift focus to its traditional oil and gas business and scale back its expansion toward renewables. The energy giant has been facing criticism in recent years from investors due to its underperformance compared to its rivals in the energy sector. By divesting non-core assets and shifting its focus back to the traditional oil and gas business, BP intends to improve shareholder returns and address investor concerns. The company plans to deliver divestment proceeds worth over $3-$4 billion in 2025. BP's onshore wind business in the United States, named bp Wind Energy, includes 10 operational wind projects across seven states. The wind farms have a cumulative capacity of nearly 1.7 GW, of which BP owns 1.3 GW. Of the 10 operational projects, five are wholly owned by the British energy firm. BP holds a 50% stake in the other five projects. The company stated that the divestment of its US onshore wind business had taken place after a 10-month competitive bidding process, indicating strong interest from several buyers. The transaction is expected to conclude by the end of this year. Following the close of the deal, bp Wind Energy will operate as a part of LS Power's subsidiary, Clearlight Energy. This should bring the total capacity of LS Power's operating portfolio to about 4.3 GW. The financial details of the deal have not been disclosed yet. LS Power builds and operates electric transmission systems in the country. The company stated that the acquisition of bp Wind Energy should expand its renewable energy capacity, which should help meet the growing energy requirements in the United States. BP's Zacks Rank & Key Picks Currently, BP carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector are MPLX LP MPLX, Venture Global Inc. VG and W&T Offshore WTI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders. Venture Global is primarily involved in the production and export of liquefied natural gas, sourced from the abundant gas basins in North America. It is the second-largest exporter of natural gas in the United States. The company is well-positioned to capitalize on the rise in LNG demand, partly driven by the growth of data centers and the global shift toward the use of lower-emission fuels. W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company's recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects, which is expected to significantly benefit WTI. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report Venture Global, Inc. (VG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News24
2 days ago
- Business
- News24
Prosus offers to sell down Delivery Hero stake to appease EU
The European Commission had pressed Amsterdam-based Prosus to significantly reduce or divest its stake in the German food delivery firm, sources told Bloomberg. Getty Be among those who shape the future with knowledge. Uncover exclusive stories that captivate your mind and heart with our FREE 14-day subscription trial. Dive into a world of inspiration, learning, and empowerment. You can only trial once. Start your FREE trial now Show Comments ()
