British energy giant, BP plc BP reported first-quarter 2016 adjusted earnings of 17 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line came above the Zacks Consensus Estimate of 30 cents loss. However, the bottom line came below the year-ago earnings of 85 cents.BP's total revenue was $39,166 million in the quarter, sharply down from the year-ago level of $56,243 million.Operational PerformanceUpstream For the first quarter, total production came in at 2.428 million barrels of oil equivalent per day (MMBoe/d), up 5.2% year over year.The company sold liquids for $26.97 per barrel (versus $46.79 in the year-earlier quarter) and natural gas for $2.84 per thousand cubic feet (versus $4.44). Overall price realization fell to $22.57 per Boe from the year-ago level of $37.00 per Boe.After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost loss before interest and tax for the segment was $747 million. In the comparable year-ago quarter, the segment had generated profits of $604 million.The results for the reported quarter reflect significantly lower liquids and gas realizations. This was partly offset by lower costs including the benefits from simplification and efficiency activities, lower rig cancellation costs, and lower depreciation, depletion and amortization expense.DownstreamSegmental profits decreased to $1,813 million from $2,158 million in the year-ago quarter. The downfall stemmed from the weakest fuels business refining margins since 2010 and adverse foreign exchange impact.Refining Marker Margin decreased to $10.5 per barrel from $15.2 in the first quarter of 2015. Total refinery throughput decreased to 1,744 thousand barrels per day (MB/d) from 1,752 MB/d in the year-earlier period. Refining availability was 95.0% versus 94.3% in the year-ago period.RosneftThe Rosneft segment includes equity-accounted earnings from associates, representing BP’s stake in the former. The segment posted profits of $66.0 million compared with $183.0 million in the year-ago quarter.FinancialsBP's net debt was $29,996 million at the end of first-quarter 2016 compared with $25,123 million in the year-ago quarter. Net debt-to-capitalization ratio was 23.6% versus 18.4% in the year-ago period.Company OutlookBP expects second-quarter 2016 production to be lower than the first quarter, reflecting PSA entitlement impact, seasonal turnaround and maintenance activity. In the downstream space the company expects a significantly higher level of turnaround activity, particularly in the U.S., and some seasonal improvement in industry refining margins.Zacks RankBP – one of Europe’s leading oil companies by market value – currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are Vanguard Natural Resources, LLC VNR, Antero Resources Corporation AR and PetroChina Co. Ltd. PTR. Each of these stocks carries a Zacks Rank #2 (Buy). 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 >>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 PLC (BP): Free Stock Analysis Report PETROCHINA ADR (PTR): Free Stock Analysis Report VANGUARD NATURL (VNR): Free Stock Analysis Report ANTERO RESOURCE (AR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research