BP p.l.c.

What does it do?

BP is one of the world's largest energy companies — think of it as a giant machine that pulls oil and gas out of the ground, refines it into fuel, and sells it to people, businesses, and governments everywhere. When you fill up at a BP petrol station, buy a plane ticket (BP supplies jet fuel to airlines), or heat your home with gas, there's a good chance BP had a hand in it. The company operates in dozens of countries and produces millions of barrels of oil equivalent every single day. More recently, BP has also been building wind farms and solar projects as it tries to position itself for a world that uses less fossil fuel.

How does it make money?

BP makes most of its money by producing and selling oil and natural gas — in 2023 it pulled in $189.3 billion in revenue, roughly the same as the year before. Its three main business arms are: Oil Production & Operations (drilling and selling crude oil), Gas & Low Carbon Energy (natural gas trading plus wind, solar, and hydrogen), and Customers & Products (fuel retail, aviation fuel, and lubricants like Castrol). The catch right now is that after costs — including huge write-downs and clean-up liabilities — net income shrank to just $0.1 billion, meaning BP kept almost none of that giant revenue pile as profit.

Why do investors care?

The core investment argument is that BP is a cash-generating machine when oil prices are high, and it's using that cash to pay dividends and buy back its own shares (which pushes the share price up). BP has also committed to trimming its oil output and growing its renewables business, which could attract a new wave of investors focused on sustainability. But the real question is timing — oil stays relevant longer than expected, and BP could benefit from elevated energy prices while quietly building its green energy business on the side. For this story to work, oil prices need to stay supportive, cost cuts need to stick, and the renewable push needs to show real returns.