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BP's 6% Yield Firm, But Rosneft's Debt Problems Loom

On February 3, BP (BP) released its Q4 2014 earnings and updated investors on what to expect in 2015. BP spent $22.9 billion on its capex budget last year, which was lower than its initial guidance of $24.5 billion. In light of low oil prices, which have squeezed the capex budgets of every oil and gas company, BP is lowering its organic capex budget to $20 billion this year. An excerpt from its press release:

"In 2015, BP plans to reduce exploration expenditure and postpone marginal projects in the Upstream, and not advance selected projects in the Downstream and other areas."

BP generated $32.8 billion in post-tax cash flow last year. When combined with the $3.5 billion in proceeds from its asset sales, it was enough to cover the $33.6 billion BP spent in 2014. That included the $22.9 billion BP spent on organic capex, $5.9 billion it… Read More …