BP plc (ADR) (BP): Has It Become the Perfect Stock?

Even with that threat hanging over its head, BP plc (ADR) (NYSE:BP) has made some big strategic moves as well. One key transaction involves selling its interest in the Russian TNK-BP joint venture to Russian oil giant Rosneft in exchange for close to a 20% stake in Rosneft and about $12.5 billion in net cash. The company will return about $8 billion of that cash to shareholders through stock buybacks, but it hopes that its Rosneft investment will continue paying lucrative dividends for years to come.

Another transaction last October involved BP selling its Texas City refinery to Marathon Petroleum Corp (NYSE:MPC) for a base price of about $600 million. With earnout provisions, the refiner could pay BP plc (ADR) (NYSE:BP) an additional $700 million. With many major oil companies selling or spinning off refining assets, the move leaves BP plc (ADR) (NYSE:BP) with more money to invest in exploration activity.

For BP to improve, it needs to put the Gulf spill behind it and focus on the region’s huge potential, as well as its holdings in the Middle East, Africa, and elsewhere around the world. Boosting growth will help BP make its troubles history.

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The article Has BP Become the Perfect Stock? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Transocean.

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