BP to Sell 65% of Castrol to Stonepeak in $10 Billion Deal to Accelerate Debt Reduction

BP ( (BP) ) has issued an update.

On 24 December 2025, BP agreed to sell a 65% shareholding in its Castrol lubricants business to infrastructure investor Stonepeak at an enterprise value of about $10.1 billion, implying an EV/LTM EBITDA multiple of roughly 8.6 times and valuing Castrol’s equity at around $8 billion after deducting minority interests and debt-like obligations. BP expects roughly $6 billion in net proceeds, including accelerated dividend prepayments on its retained 35% stake, and plans to use all of the cash to cut net debt as part of its $20 billion divestment programme, which this deal lifts to about $11 billion of completed and announced disposals; the transaction, which will create a new joint venture 65% owned by Stonepeak and 35% by BP, is intended to simplify BP’s portfolio, sharpen its downstream focus and strengthen its balance sheet while preserving future upside from Castrol’s growth trajectory, particularly in high-growth markets where Castrol holds major minority interests such as India, Vietnam, Saudi Arabia and Thailand.

The most recent analyst rating on (BP) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on BP stock, see the BP Stock Forecast page.

Spark’s Take on BP Stock

According to Spark, TipRanks’ AI Analyst, BP is a Neutral.

BP’s overall stock score reflects a company with strong operational performance and positive earnings call sentiment, offset by high leverage and valuation concerns. The financial performance indicates recovery with revenue growth, but profitability and leverage remain challenges. Technical analysis shows bullish momentum, while the high P/E ratio suggests potential overvaluation. The positive earnings call sentiment underscores confidence in strategic direction, contributing to the overall score.

To see Spark’s full report on BP stock, click here.

More about BP

BP p.l.c. is a global integrated energy company headquartered in London, active across oil, gas, refining and marketing, and increasingly in low‑carbon and energy transition businesses. Through its downstream operations it owns brands such as Castrol, a leading lubricants producer with significant positions in automotive, industrial and specialty oils across key growth markets including India and other parts of Asia and the Middle East.

Average Trading Volume: 6,922,948

Technical Sentiment Signal: Buy

Current Market Cap: $88B

Find detailed analytics on BP stock on TipRanks’ Stock Analysis page.