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Yahoo
4 days ago
- Business
- Yahoo
BP Sells US Wind Portfolio In $20 Billion Divestment Push
BP plc (NYSE:BP) announced Friday that it will sell its entire U.S. onshore wind energy portfolio to LS Power, a New York-based energy infrastructure firm. This move is part of a broader strategy to streamline operations and prioritize targeted low-carbon investments. The deal covers 10 wind farms across seven states with a total capacity of 1.3 gigawatts. This move is part of BP's $20 billion divestment plan, which aims to refocus capital allocation. William Lin, executive vice president for gas and low carbon energy at BP, said the assets and workforce were strong, but the company concluded that 'we are no longer the best owners to take it forward.' He expressed confidence in LS Power's ability to scale the wind business while supporting bp's transitioning staff. Also Read: LS Power plans to integrate the wind projects into its clean energy portfolio, which already spans 21GW of power generation and extensive transmission infrastructure. Paul Segal, CEO of LS Power, described the acquisition as a strategic expansion to meet rising energy demand through well-contracted renewable assets. The sale is expected to close by year-end, pending regulatory approvals. So far in 2025, BP has completed or signed $1.5 billion in divestments and aims to hit $3–4 billion by year-end, with further updates due in its second-quarter earnings report. This decision follows BP's recent warning about a potential earnings dip tied to sliding oil prices, highlighting the company's pivot toward more resilient and efficient operations. Investors may also consider the iShares Global Clean Energy ETF (NASDAQ:ICLN) and the First Trust Global Wind Energy ETF (NYSE:FAN) for broader exposure. Price Action: At the last check on Friday, BP shares were trading higher by 0.31% to $32.19 premarket. Read Next:Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BP (BP): Free Stock Analysis Report This article BP Sells US Wind Portfolio In $20 Billion Divestment Push originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Irish Times
5 days ago
- Business
- Irish Times
BP offloads US onshore wind business as it pivots back to oil
BP has struck a deal to offload its US onshore wind business to LS Power, as the FTSE 100 energy major pushes ahead with its pivot back towards fossil fuels in a bid to revive its share price. The wind farms, spread across seven states, are all operational and have a combined capacity of 1.7GW, of which BP owns 1.3GW. The sale is the latest move in a $20 billion (€17 billion) divestment programme, announced by BP in February, to streamline its business and boost returns to shareholders after a period of lacklustre performance. READ MORE The terms of the deal, announced on Friday, were not disclosed. In April, BP said it had signed or completed $1.5 billion of divestments already in 2025 and expected to raise a total of $3 billion to $4 billion from asset sales over the course of the year. Some previous estimates have valued the BP's US onshore wind business at as much as $2 billion. However, pricing for recent transactions involving US wind farms of a similar age suggests the value is likely to be lower. BP said the deal followed a 'competitive' 10-month auction process. [ Shell denies takeover talk, but BP's woes persist Opens in new window ] After completion of the transaction, which is expected before the end of the year, BP Wind Energy will form part of LS Power's subsidiary Clearlight Energy, increasing the North American energy group's operating fleet to about 4.3GW. The move comes as BP seeks refocus on its core oil and gas operation. William Lin, the company's executive vice-president for gas and low-carbon energy, said on Friday that green energy still 'has a role to play' in its portfolio, adding: 'The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.' David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 The UK oil major put the wind energy business up for sale last September. At the time, Lin said the onshore wind business was 'not aligned' with BP's plans for growth in Lightsource bp, its solar energy business. BP is also exploring a sale of its lubricants arm Castrol, which has drawn interest from private equity and industry bidders and could be valued at $8bn, though some parties are considering making lower bids, the Financial Times reported in June. Over the past 12 months, BP's share price has fallen more than 10 per cent, sparking speculation that it could be ripe for a takeover. Activist investor Elliott Management has built a stake and been pressuring the board to shake up the business. Last month, rival Shell was forced to deny rumours that it was planning a bid for BP, saying it had 'no intention' of making an offer for the company. This month, BP warned that lower oil and gas prices were likely to hit second-quarter earnings, despite it increasing production. The company said it expected earnings in its oil business to be $600mn-$800mn lower in the three months to the end of June than the previous quarter, while gas would be between $100mn and $300mn lower. BP's shares rose 1.9 per cent in morning trading. – Copyright The Financial Times Limited 2025
Yahoo
5 days ago
- Business
- Yahoo
BP Sells US Wind Portfolio In $20 Billion Divestment Push
BP plc (NYSE:BP) announced Friday that it will sell its entire U.S. onshore wind energy portfolio to LS Power, a New York-based energy infrastructure firm. This move is part of a broader strategy to streamline operations and prioritize targeted low-carbon investments. The deal covers 10 wind farms across seven states with a total capacity of 1.3 gigawatts. This move is part of BP's $20 billion divestment plan, which aims to refocus capital allocation. William Lin, executive vice president for gas and low carbon energy at BP, said the assets and workforce were strong, but the company concluded that 'we are no longer the best owners to take it forward.' He expressed confidence in LS Power's ability to scale the wind business while supporting bp's transitioning staff. Also Read: LS Power plans to integrate the wind projects into its clean energy portfolio, which already spans 21GW of power generation and extensive transmission infrastructure. Paul Segal, CEO of LS Power, described the acquisition as a strategic expansion to meet rising energy demand through well-contracted renewable assets. The sale is expected to close by year-end, pending regulatory approvals. So far in 2025, BP has completed or signed $1.5 billion in divestments and aims to hit $3–4 billion by year-end, with further updates due in its second-quarter earnings report. This decision follows BP's recent warning about a potential earnings dip tied to sliding oil prices, highlighting the company's pivot toward more resilient and efficient operations. Investors may also consider the iShares Global Clean Energy ETF (NASDAQ:ICLN) and the First Trust Global Wind Energy ETF (NYSE:FAN) for broader exposure. Price Action: At the last check on Friday, BP shares were trading higher by 0.31% to $32.19 premarket. Read Next:Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BP (BP): Free Stock Analysis Report This article BP Sells US Wind Portfolio In $20 Billion Divestment Push originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
