Deals
BP Breaks From Peers to Unleash Cash Bet on Oil Staying High
- Company now plans to fund $10.5 billion shale deal with cash
- Decision reflects confidence in market, sends shares soaring
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BP Plc is gearing up to leave European competitors in the dust, at least when it comes to spending the industry’s enormous cash pile.
While Total SA and Equinor ASA both signaled last week they’re still keeping a tight rein on spending, BP showed Tuesday it’s prepared to take some risks. After smashing earnings estimates in the third quarter, the U.K. oil major reversed a plan to issue new equity to fund a $10.5 billion acquisition, saying it’ll do it all in cash instead.