BPT’s new boss, Brett Woods, intends to diversify the oil & gas producer into gas power generation and storage as part of a far-reaching turnaround strategy, but since the bold announcement in June, the stock has fallen over 27%. Last month, BPT shocked the market with a significant downgrade to reserves at its Enterprise natural gas field by a whopping 34%, taking the overall group reserves down by ~20%. We don’t like the idea that after pre-announcing adjustments/downgrades in June, it finds another massive miss lurking in the closet, but it speaks to the challenging nature of their assets, something we’ve highlighted over multiple years.
- We see no reason to consider BPT ahead of WDS &/or STO.
MM is neutral at best towards BPT
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