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Modelling guidance

11 February 2025

The purpose of this page is to collate existing available public information that may assist with the financial modelling of bp. Please also refer to our legal notice. 

Trading conditions update

The trading conditions update is produced in order to provide equal disclosure to all investors and potential investors of current trading conditions.

 

Content includes the following:

  • Current and historic market prices
  • Current and historic marker margins
  • Rules of thumb for Brent, Henry Hub and RMM
Operating environment rules of thumb for the full year 2025 Impact on pre-tax replacement cost operating profit
Oil price*
Brent +/- $1/bbl
$340m
Natural gas price*
Henry Hub +/- $0.10/mmBtu
$40m 
Customers & products refining margin
RMM +/- $ 1/bbl
$400m 
*combined indicator for oil production & operations and gas & low carbon energy

Find out more about our trading conditions update

 

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Upcoming quarters guidance

Below is bp's 1Q 2025 guidance as at 4Q24 results publication on 11 February 2025

  • Looking ahead, bp expects first quarter 2025 reported upstream production to be lower compared with the fourth-quarter 2024 primarily due to the already announced divestments in Egypt and Trinidad, which completed towards the end of the fourth quarter and base decline in both regions, totaling around 90 thousand barrels of oil equivalent per day.
  • In its customers business, bp expects seasonally lower volumes compared to the fourth quarter. In addition, bp expects fuels margins to remain sensitive to movements in cost of supply and earnings delivery to remain sensitive to the relative strength of the US dollar.
  • In products, bp expects realized refining margins to remain low in the first quarter. bp also expects a lower level of refinery turnaround activity compared to the fourth quarter 2024.
  • 1Q25 buybacks expected to be $0.75-1 billion.

2025 guidance

Below is bp's 2025 guidance as at 4Q24 results publication on 11 February 2025

  • bp expects reported upstream production to be lower and underlying upstream production to be slightly lower compared with 2024. Within this, bp expects underlying production from oil production & operations to be broadly flat and production from gas & low carbon energy to be lower.
  • In its customers business, bp expects growth in its customers businesses including a full year contribution from bp bioenergy and a higher contribution from TravelCenters of America in part supported by a partial recovery from the US freight recession. Earnings growth is expected to be supported by structural cost reduction. bp continues to expect fuels margins to remain sensitive to the cost of supply and earnings delivery to remain sensitive to the relative strength of the US dollar.
  • In products, bp expects broadly flat refining margins relative to 2024 and stronger underlying performance underpinned by the absence of the plant-wide power outage at Whiting refinery, and improvement plans across the portfolio. bp expects similar levels of refinery turnaround activity, with phasing of turnaround activity in 2025 heavily weighted towards the first half, with the highest impact in the second quarter. 
  • bp expects other businesses & corporate underlying annual charge to be around $1.0 billion for 2025. The charge may vary from quarter to quarter.
  • bp expects the depreciation, depletion and amortization to be broadly flat compared with 2024.
  • bp expects the underlying ETR for 2025 to be around 40% but it is sensitive to a range of factors, including the volatility of the price environment and its impact on the geographical mix of the group’s profits and losses.
  • bp expects divestment and other proceeds to be around $3 billion in 2025 weighted towards the second half. Having realized $22.0 billion of divestment and other proceeds since the second quarter of 2020, bp continues to expect to reach $25 billion of divestment and other proceeds between the second half of 2020 and 2025. 
  • bp expects Gulf of America settlement payments for the year to be around $1.2 billion pre-tax including $1.1 billion pre-tax to be paid during the second quarter.
  • bp expects 2025 capital expenditure including inorganic to be around $15 billion.

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Medium-term guidance

 Full detail around our medium targets and guidance can be found in our capital markets update materials.    

Four primary medium-term targets that underpin value growth

 

Adjusted free cash flow* growth: >20% CAGR from 2024 – 2027

Structural cost reduction: $4 – 5bn by end 2027

Net debt: expected to be reduced to $14 – 18bn by end 2027

(Potential proceeds from any transactions related to Castrol strategic review and announcement to bring a strategic partner into LSbp will be allocated to reduce net debt)

Group ROACE: >16% in 2027

 

Supporting metrics

 

Upstream:

  • Upstream production growth: 2.3 - 2.5mboed in 2030, with capacity to increase to 2035
  • 10 new major projects to start by end 2027 and further 8 to 10 by end 2030: Major projects
  • Upstream capex: ~$10.5bn p.a to 2027 (including biogas)
    • ~$10bn oil & gas only (70% oil / 30% gas) 
  • Structural cost reductions: ~$1.5bn by end 2027
  • Operating cash flow growth: $2bn 2024 to 2027 (including biogas)
  • Plant reliability: ~96%
  • Reserves replacement ratio: 100% by end 2027

Downstream:

  • Customers & products capex: ~$3bn by 2027
  • Structural cost reductions: ~$2bn by end 2027 
    • ~$1.5bn in customers
    • >$500m in refining
  • Operating cash flow growth: $3.5 to 4bn by 2027 (50% customers, 50% products)
  • Realised cash breakeven: ~$3/bbl lower
  • Returns: >15% expected
  • Refining availability: 96%

Low carbon energy (renewables, H2/CCS):

  • Capex: <$800m p.a to 2027
  • Structural cost reductions: ~$0.5bn by end 2027
  • Returns: mid-teen expected

Transition: includes LCE + biogas, biofuels and EV charging

Note: biogas is reported in G&LCE from 1Q25, biofuels and EV charging will continue to be reported in our customers business  

  • Capex: $1.5 to 2bn p.a. to 2027
  • Expected returns: >15% 

Price assumptions

Forward looking targets are based on: Brent $70/bbl, HH $4/mmbtu, RRM $17/bbl (2024 real).   

Marker prices 2024 actual 20241 2025 2026 2027
Brent ($/bbl)  80.8 71.5 71.5 72.9 74.4
Henry Hub ($/mmbtu) 2.3 4.1 4.1 4.2 4.3
Refining marker margin ($/bbl) 17.7 17.0 17.4 17.8 18.1