BP Shares Surge as Elliott Management Takes Stake, Sparking Strategic Overhaul Speculation

LONDON, United Kingdom — BP shares surged Monday after reports emerged that activist investor Elliott Management has acquired a stake in the oil major, potentially pressing the company to reevaluate its core oil and gas operations. The stock rose 6.89% by 12:56 p.m. local time.

Elliott Management, known for its active investment strategy, has not disclosed the size of its stake in BP. Both Elliott and BP declined to comment on the matter. The move comes as BP prepares to release its fourth-quarter results and outline its broader strategy, with investors seeking clarity on its direction amid stagnant oil prices and growing competition in renewable energy.

BP has faced challenges, with shares dropping 9% over the past year, underperforming peers like Shell, which saw a 6% increase. Recently, BP warned of higher corporate costs and lower refining margins, while planning to cut 4,700 roles as part of CEO Murray Auchincloss‘s $2 billion cost-saving initiative by 2026.

Elliott’s history, including its involvement with Suncor, suggests it may push BP to split its oil and gas segment from its renewable ventures. RBC analysts speculate this could be part of a strategic review to reduce capital allocation to traditional energy areas. Elliott’s influence might extend to leadership changes, with potential calls for a new chairperson.

With $91.87 billion in market value, BP is navigating a pivotal phase under Auchincloss. Elliott’s move has reignited speculation about BP’s future, including possible takeover discussions. Known for its $70 billion assets and recent engagements with Anglo American and Honeywell, Elliott’s involvement promises to shape BP’s strategic trajectory.