Press Releases

The Zacks Analyst Blog Highlights:BP, Marathon Petroleum, Tesoro, Plains Exploration & Production and Plains All American Pipeline

CHICAGO, Oct. 10, 2012 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include BP Plc (NYSE:BP), Marathon Petroleum Corp. (NYSE:MPC), Tesoro Corporation (NYSE:TSO), Plains Exploration & Production Co. (NYSE:PXP) and Plains All American Pipeline LP (NYSE:PAA).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Tuesday's Analyst Blog:

BP to Offload Texas City Refinery

The U.K. energy giant BP Plc (NYSE:BP) plans to offload its Texas City refinery as well as other properties to Ohio-based Marathon Petroleum Corp. (NYSE:MPC). This move is integral to BP's efforts to realign its downstream portfolio.

Per the deal, along with this 475,000 barrel per day refinery, BP will shed a portion of its retail and logistics network in the Southeast U.S. The sale of this refinery, the third largest in the U.S., could fetch up to $2.5 billion for BP. This includes a base purchase price of $598 million, plus approximately $1.2 billion for inventories and an additional $700 million over six years subject to certain conditions.

This latest sale − which is expected to close by early 2013 − is in sync with BP's strategy to trim its U.S. refining capacity to half by the end of this year through the divestiture of the Carson refinery in Southern California and the Texas City refinery. BP has already disposed the Carson refinery in California to Tesoro Corporation (NYSE:TSO) for $2.25 billion in August. However, the company intends to retain three core U.S. sites, Whiting in Indiana, Cherry Point in Washington and Toledo in Ohio.

Even before the Macondo accident, this Texas City facility witnessed a deadly explosion in March 2005. The incident took the lives of 15 workers and injured as many as 170, raising a safety alarm across BP's U.S. operations. Following this, the company shut down the refinery for about two years and incurred $1 billion in compensations to restore the unit. Again, in 2007, BP announced it spent $1.6 billion to recompense the sufferers.

Again, the present stream of negotiations is in line with BP's divestment program that sees the British major getting rid of its mature, non-core assets to create a portfolio with strong growth potential operating from a smaller base. The company is set to divest around $38 billion worth of assets by 2013, of which it has already announced disposals of more than $35 billion.

In recent times, BP has divested a number of non-strategic assets that include Gulf of Mexico (GoM) oil and gas assets to Plains Exploration & Production Co. (NYSE:PXP) for $5.55 billion as well as its Canadian natural gas liquids business to Houston's Plains All American Pipeline LP (NYSE:PAA) for $1.67 billion.

BP carries a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. We also maintain our long-term Neutral recommendation on the company.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

SOURCE Zacks Investment Research, Inc.