BP plc Sponsored ADR (BP.US) has a new boss, JPMorgan Chase holds a neutral rating.

JPMorgan Chase recently released a report on BP p.l.c. Sponsored ADR (BP.US). BP p.l.c. Sponsored ADR announced on Wednesday evening the appointment of Meg O'Neill as the new Chief Executive Officer (CEO), effective April 2026. She will be joining from Woodside Energy in Australia, where she has been serving as CEO since 2021. The company has given a neutral rating with a target price of $480 by June 2027. Under the leadership of the new Chairman Albert Manifold, the Board's decision can be seen as a bold move in several aspects: 1) This is the first time in over a hundred years that an external CEO has been appointed at BP p.l.c. Sponsored ADR; 2) BP p.l.c. Sponsored ADR stated that this move does not signify a change in strategic direction, but is aimed at accelerating the company's transformation into a more streamlined, efficient, and profitable entity. However, investors may be concerned about the potential for deeper transformation within the company, with the Chairman emphasizing the need for increased rigor and diligence; 3) Nick Morgan, the analyst responsible for covering Woodside Energy at JPMorgan, mentioned that during O'Neill's tenure, the company's investment portfolio performed well, but some capital allocation decisions (such as the Louisiana LNG project) sparked some controversy among investors. Outgoing CEO Murray Auchincloss stated that when Manifold became Chairman earlier this year, he expressed willingness to step down if a suitable successor was found. Overall, the company expects investors to take a positive view of this change and approach BP p.l.c. Sponsored ADR's strategic agenda with an open mind. The company maintains a cautious stance on the energy sector, only offering a "hold" rating to Shell (SHEL.US) among the large oil companies, primarily due to its 8% free cash flow yield and leading risk resilience, providing a better risk-return ratio. Upcoming arrangements: Meg O'Neill's appointment will take effect on April 1, 2026. Murray Auchincloss, who has been serving as the permanent CEO since early 2024, will step down immediately and serve as an advisor until December 2026 to support a smooth transition. Carol Howle, Executive Vice President of Supply, Trading and Shipping, will serve as interim CEO until April 2026. Personal background of Meg O'Neill: Ms. O'Neill is an American citizen and has been serving as the CEO of Woodside Energy since 2021. She joined the company in 2018 and held several positions such as Chief Operating Officer, Executive Vice President of Development, and Executive Vice President of Development and Marketing before becoming CEO. Prior to this, she spent over 20 years at Exxon Mobil Corporation (XOM.US), where she was responsible for global technology, operations, and leadership roles. BP p.l.c. Sponsored ADR highlights O'Neill's achievements at Woodside Energy including a focus on business improvement and financial discipline, as well as leading the acquisition of BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs International Petroleum Corporation (BHP.US).