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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research