Wednesday, December 29, 2010

BP (NYSE:BP) Will Survive and Thrive Says Citigroup (NYSE:C)

The majority of costs from BP's (NYSE:BP) disaster in the Gulf of Mexico have been analyzed, and in general have been brought to a place where it is believed BP will have no trouble suriviving the ordeal, but should thrive, according to Citigroup (NYSE:C).

The remaining and always unknown factor is how juries will respond to the cases before them, which could punish the company more than current estimates, and will remain unpredictable until they're completed.

But the years it'll take to work through those will allow BP to expand and build up its capital base to the point they'll be able to handle whatever comes their way, and they already have sold about $21 billion in assets toward that end.

The obvious example cited by Citigroup was concerning the oil spill of Exxon (NYSE:XOM), which was a public relations disaster at the time, and as far as damaging wildlife was far worse than the BP oil spill.

Exxon has not only survived, but have thrived, and are among the leaders in the oil sector today, and one of the largest companies in the world, with a market cap of over $371 billion.

BP will continue on as the issue fades, and should come back strong, as they've already began to do, but it'll take some years for it to work out.

BP was trading at $44.06, down $0.05, or 0.12 percent. They have a market cap of $138 billion.

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