Morgan Stanley: Eni leads European oil majors in production growth outlook

RBC Capital analyst Biraj Borkhataria maintained a Buy rating on BP p.l.c. with a £7.00 price target. The stock has a Moderate Buy consensus rating and an average price target of £601.40. BP reported Q2 revenue of £68.69 billion and net profit of £3.89 billion, up from £46.63 billion and £1.63 billion respectively last year.

Baker Hughes (BKR) secured a contract from bp (BP) to provide offshore stimulation services in the UK North Sea, supporting new well development and enhanced recovery. The deal involves a vessel-based solution for efficient well completions and production enhancement, aiming to improve operational reliability and reservoir recovery. Baker Hughes will leverage its StimFORCE modular stimulation package and local supply chain network.

Chevron plans to invest $7 billion in Venezuela over five years, aiming to double oil production to 600,000 bpd. NABEP secured control of oilfields with 65 billion barrels of reserves, planning $100 billion in investments. Chevron and Shell also signed a preliminary agreement for Ghana's South Deepwater Tano block. SOCAR acquired stakes in Comstock Resources' Haynesville shale assets for $1.65 billion. Shell bought into BP-operated prospects in the Gulf of Mexico and Brazil.

Shell acquired a 30% stake in BP's Conifer exploration prospect in the US Gulf of America. BP retains 70% and will operate the asset, with drilling expected in 2027. Shell aims to strengthen its position in the region, highlighting its low emissions intensity. Financial details were not disclosed.

Shell plc (SHEL) will acquire a 30% interest in BP plc's (BP) Conifer prospect in the Gulf of America and a 50% stake in the Tupinambá block in Brazil's Santos Basin. BP retains operatorship and majority stakes. Shell gains exposure to potential discoveries, while BP shares exploration risks. Drilling for Tupinambá is imminent, with Conifer scheduled for 2027.

Morgan Stanley upgraded Shell (SHEL) to Overweight, raising its price target to 3,780 pence. The firm cited improved production visibility and faster dividend growth potential, forecasting a 10% annual DPS growth rate into the early 2030s. Shell was named a top pick with a 15% total shareholder return. Morgan Stanley also maintained an Overweight rating on BP (BP), citing attractive valuation and improved upstream outlook.