Exxon Mobil Corporation (XOM): Time to Back up the Truck for BP plc (ADR) (BP)?

Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) has spent billions of dollars and several years to be the first to strike black gold in the Arctic. The frigid expanse may hold as much as a quarter of the Earth’s undiscovered oil, or 90 billion barrels of oil and 1,670 cubic feet of natural gas, according to the U.S. Geological Survey. Despite opposition from environmentalists like Greenpeace, Shell has begun preliminary drilling.

Rosneft is also moving full steam ahead and already has four licenses to explore Russia’s arctic shelf. BP is pushing to get in on the action with Rosneft.

In addition, BP plc (ADR) (NYSE:BP) and some strategic partners will team up in the development of tight oil reserves in Siberia, in numerous natural gas deals and some interesting international projects.

All of this news is very welcomed by BP shareholders who have endured several years of bad press and a declining stock.

Since the April 2010 Deepwater Horizon disaster, deemed the largest accidental marine oil spill in the history of the petroleum industry, which also claimed 11 lives, shares of BP have given back some 30%. BP continues to shell out dollars to cover related costs from the spill. The company has spent or committed about $37 billion in cleanup, restoration costs, individual and government claims.

Many investors have shunned BP plc (ADR) (NYSE:BP) since the calamity. But this fresh news and BP’s fundamentals make shares worthy of a good, long look.

The stock is trading at a modest P/E of 11.61, and shares yield a healthy 4.86%. The company earned $4 billion in the latest quarter, adjusted for one-time items and inventory changes. While that was down from $5 billion a year ago, it handily beat analysts’ expectation of $3.3 billion.

Uncertainties still hover over BP, but shares are certainly looking more and more like a buy.

The article Time to Back up the Truck for BP? originally appeared on Fool.com and is written by Diane Alter.

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