BPT has declined 20% year-to-date, handing the wooden spoon to Woodside in the majors so far in 2024. In June, BPT announced plans to diversify into gas power generation and storage as part of a far-reaching turnaround strategy, but they followed up this fresh outlook in August with a significant downgrade to reserves at its Enterprise natural gas field by a whopping 34%, taking the overall group reserves down by ~20%– hence we are in no hurry with BPT. We have consistently highlighted the challenging nature of BPT’s assets, and they continue to validate these concerns.
- We need to see signs of a successful evolution by BPT before elevating it above STO and WDS.