BP's Q2 Earnings Beat Estimates, Revenues Decline Y/Y

BP plc BP reported second-quarter 2025 adjusted earnings of 90 cents per American Depositary Share on a replacement-cost basis, excluding non-operating items. The figure beat the Zacks Consensus Estimate of 68 cents. The bottom line declined from the year-ago reported figure of $1.00.

Total quarterly revenues of $47.7 billion lagged the Zacks Consensus Estimate of $60.7 billion and declined from $48.3 billion reported a year ago.

The better-than-expected quarterly earnings can be primarily attributed to higher oil production, which was partially offset by lower price realizations.

BP p.l.c. Price, Consensus and EPS Surprise

BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote

Operational Performance

Oil Production & Operations

For the second quarter, BP reported a total production of 1,518 thousand barrels of oil equivalent per day (Mboe/d), up from 1,481 MBoe/d recorded in the year-ago quarter. The metric beat our estimate of 1,475.8 MBoe/d.

BP sold liquids at $59.74 per barrel in the second quarter, down from $73.01 reported a year ago. The company sold natural gas at $3.66 per thousand cubic feet, up from $2.02 reported in the year-ago quarter. Overall, hydrocarbon price realization decreased year over year to $49.03 per Boe from $55.78.

After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $1.9 billion. The figure was below the $3.3 billion recorded in the year-ago quarter. It was also below our estimate of $2.8 billion. The segment was affected by lower price realizations for liquids. However, this was partially offset by increased production volumes.

Gas & Low Carbon Energy

Segmental profits totaled $1.5 billion, higher than $1.4 billion registered in the year-ago quarter. Lower realizations and a higher depreciation, depletion and amortization charge hurt the segment. The figure beat our projection of $1.11 billion.

Total production of 782 MBoe/d declined from 899 MBoe/d in the year-ago quarter.

Customers & Products

After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment were reported at $1,533 million, higher than $1,149 million in the year-ago quarter. The segment was primarily affected by a higher level of refinery turnaround activity, which was partially offset by stronger realized refining margins and a strong oil trading contribution.

BP-operated refining availability in the June-ended quarter was 96.4%, flat year over year.

Total refinery throughputs were 1,288 thousand barrels per day (MBbl/D), down from 1,392 MBbl/D in the corresponding period of 2024.

Capex

Organic capital expenditure in the reported quarter totaled $3.3 billion. The company registered a total capital spending of $3.3 billion for the quarter.

Financials

BP's net debt was $26 billion at the end of the second quarter. Also, the firm announced a gearing of 24.6% for the quarter.

Outlook

BP expects third-quarter 2025 upstream production to dip slightly from the prior-quarter level. It also anticipates a seasonal rise in customers’ business volumes and a significant decline in its refinery turnaround activity. Taxes are projected to increase about $1 billion due to payment timing.

For 2025, BP forecasts slightly lower overall upstream production versus 2024, with oil output flat and gas & low-carbon output down. Growth is anticipated in its customers segment, supported by cost reductions and bioenergy contributions. BP expects divestment proceeds of $3-$4 billion, a slightly higher DD&A and a ~40% effective tax rate.

BP’s Zacks Rank and Key Picks

BP currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Delek Logistics Partners, LP DKL and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.

Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed on the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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