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3mo ago

Elliott Management Becomes BP’s Second-Largest Investor, Pressures for Deeper Oil Focus

The activist hedge fund now controls over 5% of BP via financial instruments, urging a sharper pivot from renewables to boost cashflow and shareholder returns.

FILE PHOTO: The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
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A protest over BP’s green strategy U-turn outside the oil company’s London HQ in early April

Overview

  • Elliott Management has surpassed the 5% ownership threshold in BP, making it the company’s second-largest investor after BlackRock.
  • The hedge fund's stake is held through financial instruments rather than direct shares, valued at approximately £2.8 billion.
  • Elliott is pushing BP to accelerate its exit from renewable energy investments and prioritize free cashflow growth, citing concerns about underperformance.
  • BP’s shares have dropped 17.5% since U.S. tariffs were introduced, underperforming rival Shell, which has fallen 12.5%.
  • BP’s recent strategic shift has drawn scrutiny from UK MPs, with parliamentary questioning highlighting tensions over balancing profit goals with climate commitments.