January 22, 2017 NYSE: BP

BP PLC BUY A+

A

A-

HOLD

B+

B

Annual Dividend Rate $2.40

B-

C+

C

Annual Dividend Yield 6.50%

SELL C-

D

Beta 1.16

Sector: Energy BP BUSINESS DESCRIPTION BP p.l.c. operates as an integrated oil and gas company worldwide. It operates through three segments: Upstream, Downstream, and Rosneft.

D+

D-

E+

E

E-

F

HOLD

Market Capitalization $116.3 Billion Sub-Industry: Integrated Oil & Gas

Weekly Price: (US$)

SMA (50)

52-Week Range $27.01-$38.68

RATING SINCE

07/23/2015

Price as of 1/19/2017 $36.90

Source: S&P

SMA (100)

1 Year

2 Years 44 42 40

STOCK PERFORMANCE (%) 3 Mo. Price Change 2.35

1 Yr. 27.59

38

3 Yr (Ann) -8.52

36 34

GROWTH (%) Last Qtr -16.22 3,421.73 2,450.00

Revenues Net Income EPS

12 Mo. -26.87 51.35 50.81

3 Yr CAGR -21.83 NA NA

32 30 28 Rating History

RETURN ON EQUITY (%)

HOLD

BP -4.03 -7.48 7.33

Q3 2016 Q3 2015 Q3 2014

Ind Avg -2.30 1.00 1.27

S&P 500 12.00 12.28 14.59

HOLD

Volume in Millions

100 50

2015

P/E COMPARISON

BUY

2016

2017

0

COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History

n/m

43.26

25.41

BP

Ind Avg

S&P 500

2014

2015

Q3 0.51

Q1 -0.19

Q2 -0.46

Q4 -1.08

Q3 0.02 Q1 0.85

Q2 -1.91

Q4 -1.44

Q2 1.09

Q1 1.14

Q3 0.42

EPS ANALYSIS¹ ($)

2016

NA = not available NM = not meaningful 1 Compustat fiscal year convention is used for all fundamental data items.

RECOMMENDATION We rate BP PLC (BP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. HIGHLIGHTS The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 3421.7% when compared to the same quarter one year prior, rising from $46.00 million to $1,620.00 million. Powered by its strong earnings growth of 2450.00% and other important driving factors, this stock has surged by 27.59% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. BP PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BP PLC swung to a loss, reporting -$2.12 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus -$2.12). The gross profit margin for BP PLC is currently extremely low, coming in at 13.61%. Regardless of BP's low profit margin, it has managed to increase from the same period last year. Net operating cash flow has significantly decreased to $2,508.00 million or 51.61% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 22, 2017

PAGE 1

January 22, 2017 NYSE: BP

BP PLC Sector: Energy Integrated Oil & Gas Source: S&P Annual Dividend Rate $2.40

Annual Dividend Yield 6.50%

PEER GROUP ANALYSIS

-14%

FA RA VO BL E

TOT PBR.A RDS.A RDS.B PBR

UN

FA

B RA VO

-28%

CVX

LE

Revenue Growth (TTM)

SU

OXY

5%

40%

EBITDA Margin (TTM) Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $52.5 Billion and $351.3 Billion. Companies with NA or NM values do not appear. *EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization.

Price as of 1/19/2017 $36.90

-14%

Close to two-thirds of the world’s energyneeds are satisfied by hydrocarbons (crude oil and natural gas). Althoughconservation, increased efficiency and substitutes are gaining in prominence,they are not likely to significantly reduce this dependence in the near future.Crude oil prices have moderated at present due to lagging economies and newsupplies coming online. In 2004, West Texas Intermediate (WTI) crude oil brokeout of its historic trading range of $10 to $40 per barrel on a steady climb tomore than $145 per barrel in June 2008 before crashing to under $40 by the endof 2008. Since then the price of spot crude has climbed back near the $90 to$110 range before falling again. Natural gas prices, responding to excesssupply, have retreated to the $2 to $4 range per million BTU (British thermalunit). Coal prices are dependent on the energy content of the type of coalconsidered and its location, but it, too, has climbed significantly over thepast few years. Following nearly 20 years of underinvestment,the supply of crude oil is now keeping pace with slackening demand. Longer term demandshould grow at about 1.8% per year, meaning it is expected to grow more than40% over the next 20 years. Natural gas demand is expected to rise over time,according to the American Petroleum Institute, as its cleaner-burningproperties increase in value for industry. Coal consumption is projected togrow at about 1.7% per year over the next 20 years, based on US EnergyInformation Administration forecasts. Analysis of companies in this industry beginsby forming a view of the global economy and geopolitics, which is combined witha supply and demand analysis that leads to commodity price forecasts. At theindividual firm level, how efficiently a company operates goes a long way indetermining its profitability. Supply management is an important factor, too,as high commodity prices are affected by how much supply the industry as awhole produces. Geographic positioning can also be important, as regionaleconomic cycles may not synch up well with each other.

REVENUE GROWTH AND EARNINGS YIELD

STO FA RA VO BL

The so-called “supermajor” integrated oilcompanies include Exxon Mobil (XOM), BP Plc (BP), Chevron (CVX), Total SA(TOT), and ConocoPhillips (COP). Some of the other major Exploration &Production firms include Anadarko Petroleum (APC), DevonEnergy (DVN) and Apache (APA). On the Refining & Marketing level, majorplayers include Valero Energy (VLO), Sunoco (SUN), and Tesoro (TSO). The majoruranium producer is Cameco (CCJ).

E

SU TOT UN

PBR.A PBR B RA VO LE

-28%

FA

Revenue Growth (TTM)

52-Week Range $27.01-$38.68

The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally because it touches so many others. It is broken down into its component parts by the nature of activity performed. Upstream activities are related to finding and producing commodities; midstream refers to the transportation of product from the wellhead to intermediate customers; and, downstream includes the refining, transformation and marketing of related products. Coal producers are integrated, much like the players in alternative fuels like uranium. Some of the largest players in the industry are the integrated oil & gas producers (aka Big Oil).

STO

BP

Market Capitalization $116.3 Billion

INDUSTRY ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

XOM

Beta 1.16

-25%

OXY

RDS.A RDS.B XOM CVX BP

PEER GROUP: Oil, Gas & Consumable Fuels

5%

Earnings Yield (TTM) Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -27.7% and -14.9%. Companies with NA or NM values do not appear.

Ticker BP PBR PBR.A STO SU OXY XOM RDS.A RDS.B CVX TOT

Recent Company Name Price ($) BP PLC 36.90 PETROLEO BRASILEIRO SA- PETR 11.14 PETROLEO BRASILEIRO SA- PETR 9.82 STATOIL ASA 18.80 SUNCOR ENERGY INC 31.65 OCCIDENTAL PETROLEUM CORP 68.73 EXXON MOBIL CORP 84.73 ROYAL DUTCH SHELL PLC 54.52 ROYAL DUTCH SHELL PLC 57.63 CHEVRON CORP 115.58 TOTAL SA 50.66

Market Cap ($M) 116,339 68,961 68,961 61,007 52,696 52,523 351,349 228,658 228,658 218,188 124,298

Price/ Earnings NM NM NM NM NM NM 39.59 50.95 53.86 NM 31.47

Net Sales TTM ($M) 181,173.00 82,149.00 82,149.00 43,776.48 25,466.00 10,108.00 196,866.00 226,970.00 226,970.00 101,162.00 123,350.00

Net Income TTM ($M) -3,689.00 -15,013.00 -15,013.00 -1,047.98 -2,104.00 -5,480.00 8,940.00 3,973.00 3,973.00 -1,500.00 4,022.00

The peer group comparison is based on Major Integrated Oil & Gas companies of comparable size.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 22, 2017

PAGE 2

January 22, 2017 NYSE: BP

BP PLC Sector: Energy Integrated Oil & Gas Source: S&P Annual Dividend Rate $2.40

Annual Dividend Yield 6.50%

COMPANY DESCRIPTION BP p.l.c. operates as an integrated oil and gas company worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGLs). It also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as NGLs extraction business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers lubricants, and related products and services under the Castrol, BP, and Aral brands to the automotive, industrial, marine, and energy markets; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products. This segment also sells gasoline, diesel, and aviation fuel. The Rosneft segment engages in the exploration and production of hydrocarbons in the United States, Canada, Vietnam, Venezuela, Brazil, Algeria, the United Arab Emirates, Turkmenistan, and Norway; and offers jet fuel, bunkering, bitumen, and lubricants. This segment also owns and operates 10 refineries in Russia; and refineries in Germany. As of December 31, 2015, it owned and operated approximately 2,500 retail service stations in Russia and internationally. The company also produces bioethanol, sugar, and biobutanol; exports power to the local grid; transports hydrocarbon products through shipping and chartering services; and holds interests in 16 onshore wind farms with a generation capacity of 1,556 megawatts. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom. BP PLC 1 St James's Square London SW1Y4PD GBR Phone: 44 20 7496 400 Fax: 44 20 7496 463 http://www.bp.com Employees: 80000

Beta 1.16

Market Capitalization $116.3 Billion

52-Week Range $27.01-$38.68

Price as of 1/19/2017 $36.90

STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of BP shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock’s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR

SCORE

0.5

Growth out of 5 stars weak Measures the growth of both the company's income statement and cash flow. On this factor, BP has a growth score better than virtually none of the stocks we rate

strong

4.0

Total Return out of 5 stars weak Measures the historical price movement of the stock. The stock performance of this company has beaten 70% of the companies we cover.

strong

1.5

Efficiency out of 5 stars weak Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 20% of the companies we review.

strong

2.0

Price volatility out of 5 stars weak Measures the volatility of the company's stock price historically. The stock is less volatile than 30% of the stocks we monitor.

strong

2.5

Solvency out of 5 stars weak Measures the solvency of the company based on several ratios. The company is more solvent than 40% of the companies we analyze.

strong

5.0

Income out of 5 stars weak Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

strong

THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 22, 2017

PAGE 3

January 22, 2017 NYSE: BP

BP PLC Sector: Energy Integrated Oil & Gas Source: S&P Annual Dividend Rate $2.40

Annual Dividend Yield 6.50%

Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial

0.24 Q4 FY16

0.97 E

2.34 E

2016(E)

2017(E)

Beta 1.16

Market Capitalization $116.3 Billion

52-Week Range $27.01-$38.68

Price as of 1/19/2017 $36.90

FINANCIAL ANALYSIS BP PLC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. BP PLC has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow. During the same period, stockholders' equity ("net worth") has decreased by 9.87% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.

INCOME STATEMENT Net Sales ($mil) EBITDA ($mil) EBIT ($mil) Net Income ($mil)

Q3 FY16 47,047.00 3,238.00 -258.00 1,620.00

Q3 FY15 56,152.00 4,202.00 465.00 46.00

Q3 FY16 25,566.00 262,216.00 58,997.00 91,376.00

Q3 FY15 31,946.00 273,299.00 57,405.00 101,383.00

Q3 FY16 13.61% 6.88% -0.55% 0.69 -1.40% -4.03%

Q3 FY15 13.06% 7.48% 0.83% 0.91 -2.77% -7.48%

Q3 FY16 1.25 0.39 310.00 -0.83

Q3 FY15 1.40 0.36 283.00 1.64

Q3 FY16 3,152 0.60 0.51 28.99 NA 5,638,000

Q3 FY15 3,058 0.60 0.02 33.15 NA 5,873,717

BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) Total Debt ($mil) Equity ($mil) PROFITABILITY Gross Profit Margin EBITDA Margin Operating Margin Sales Turnover Return on Assets Return on Equity DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % Avg Daily Volume

2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 22, 2017

PAGE 4

January 22, 2017 NYSE: BP

BP PLC Sector: Energy Integrated Oil & Gas Source: S&P Annual Dividend Rate $2.40

Annual Dividend Yield 6.50%

RATINGS HISTORY Our rating for BP PLC has not changed since 7/23/2015. As of 1/19/2017, the stock was trading at a price of $36.90 which is 4.6% below its 52-week high of $38.68 and 36.6% above its 52-week low of $27.01.

52-Week Range $27.01-$38.68

Price as of 1/19/2017 $36.90

VALUATION HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.27 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 9.26. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BP PLC proves to trade at a discount to investment alternatives within the industry. Price/Earnings

$35

2016

2

3

To Hold Buy Hold

5

1

2

3

4

5

BP 15.77 Peers 314.32 • Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. • BP is trading at a significant discount to its peers. Price/Book

(as of 1/19/2017)

41.56% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months. 30.68% Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss. 27.77% Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns.

1

2

3

premium

4

5

Price/Sales

1

2

premium

3

4

5

Price to Earnings/Growth

4

5

discount

1

2

3

premium

4

5

discount

BP NA Peers 2.49 • Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. • Ratio not available. Earnings Growth

1

2

3

4

lower

5 higher

BP 50.81 Peers -159.32 • Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. • BP is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth

discount

BP 0.64 Peers 2.64 • Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. • BP is trading at a significant discount to its industry on this measurement.

3

BP 8.20 Peers 13.65 • Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. • BP is trading at a significant discount to its peers.

discount

BP 1.27 Peers 9.26 • Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. • BP is trading at a significant discount to its peers.

2

premium

discount

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS

1

Price/CashFlow

discount

premium

From Buy Hold Hold

4

BP NM Peers 43.26 • Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. • BP's P/E is negative making this valuation measure meaningless. Price/Projected Earnings

MOST RECENT RATINGS CHANGES Date Price Action 7/23/15 $37.30 Downgrade 4/21/15 $42.78 Upgrade 1/16/15 $37.86 No Change

1

premium

$40

$30 2015

Market Capitalization $116.3 Billion

$45

HOLD: $37.30

BUY: $42.78

HOLD: $37.86

2 Year Chart

Beta 1.16

1

2

3

lower

4

5 higher

BP -26.87 Peers -32.35 • Lower. A sales growth rate that trails the industry implies that a company is losing market share. • BP significantly trails its peers on the basis of sales growth

DISCLAIMER:

TheStreet Ratings 14 Wall Street, 15th Floor New York, NY 10005 www.thestreet.com

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers.

Research Contact: 212-321-5381 Sales Contact: 866-321-8726

TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at http://www.thestreet.com/static/about/terms-of-use.html.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 22, 2017

PAGE 5