Shares in oil giant BP (BP) leaked lower today as it revealed that chief executive Murray Auchincloss was stepping down immediately less than two years into the role.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
BP Switches CEO
BP said Auchincloss, who became CEO in January 2024, would step down from today – December 18 – and serve in an advisory role until next December. Carol Howle will act as interim CEO before Meg O’Neill, currently in charge of Australian oil and gas firm Woodside Energy, takes up the reins from April 1, 2026.
BP said O’Neill had grown Woodside Energy into the largest energy company listed on the Australian Securities Exchange. During her time there she oversaw the acquisition of BHP Petroleum International, “creating a geographically diverse business with a portfolio of high-quality oil and gas assets.”
“We believe this [CEO] transition creates an opportunity to accelerate our strategic vision to become a simpler, leaner, and more profitable company. Progress has been made in recent years, but increased rigor and diligence are required to make the necessary transformative changes to maximise value for our shareholders,” said BP chairman Albert Manifold.
That is a clear reference to BP’s recent strategic volte-face, sidelining its push to renewable energy and shifting back to its traditional fossil fuel roots.
Energy consultant and former Shell (SHEL) executive Robin Mills told the BBC that the “surprise” appointment was centered around this refocus. “It’s very clear that the chairman felt Murray Auchincloss had done a decent job, but not enough and more was needed and some new leadership, some new blood,” he said.
Indeed, some shareholders including activist investor Elliott Management have reportedly been impatient about the pace of the new strategy despite some recent significant oil and gas contract wins.
Takeover Threat Looms
Derren Nathan, head of equity research at Hargreaves Lansdown, said the focus for O’Neill would be to boost BP’s profitability and share price so that it was not subject to a takeover as oil and gas majors merge.
The BP share price has suffered in comparison with Shell and Exxon Mobil (XOM) in the last few years – see below:
“Consolidation is the talk of the town, but BP is most frequently seen as prey rather than the hunter. Rival Shell has distanced itself from takeover speculation, but there are other potential suitors,” Nathan said. “O’Neill may have a fight on her hands to ensure BP’s not sold for a song, and to keep a seat at the table if it were to join forces with a competitor.”
What are the Best Oil Stocks to Buy Now?
We have rounded up the best oil stocks to buy now using our TipRanks Comparison Tool.
