bp halts shareholder buybacks as new CEO prepares upstream-focused turnaround
(Bloomberg) — bp has suspended its share buyback program and is prioritizing balance-sheet repair as the company works through a broader strategic reset and leadership transition.
The UK-based energy major halted its $750-million quarterly repurchase program and withdrew previous guidance to return 30%–40% of operating cash flow to shareholders, according to its latest earnings update. The move comes as bp seeks to reduce debt and strengthen financial flexibility ahead of incoming CEO Meg O’Neill, who is set to take over in April.
Net debt stood at about $22.2 billion at year-end, and bp maintained its target range of $14 billion to $18 billion by 2027. Analysts said the decision to pause buybacks reflects a shift toward more conservative capital allocation and a focus on rebuilding investor confidence.
The fourth quarter capped a turbulent year for bp that included activist pressure from Elliott Investment Management and leadership changes at the top of the company. Executives have signaled a renewed emphasis on core oil and gas operations and portfolio high-grading as part of the turnaround.
bp expects 2026 capital spending to remain at the low end of prior guidance, while continuing asset divestments and cost reductions. The company has targeted up to $1.5 billion in additional cost cuts through 2027 as part of its restructuring plan.
On the upstream side, bp continues to advance key projects, including appraisal planning for its Bumerangue discovery offshore Brazil, which the company estimates contains about 8 billion barrels of liquids in place. Production for 2026 is expected to be slightly lower year over year as the company rebalances its portfolio.
bp reported fourth-quarter net income of $1.54 billion, broadly in line with analyst expectations, as the company navigates lower commodity prices and prepares for a new phase of its strategic reset.
See also: bp names Meg O’Neill as next CEO in leadership transition
