BP Sees Q3 Output Rise On Gas

BP BP says Q3 upstream output will tick higher from Q2, helped by more gas from bpx energy.The company had guided slightly lower versus Q2's ~2.3 million boe/d, but now expects an uptick. In gas and low carbon energy, realizations are about $(0.1) billion worse quarter on quarter as non Henry Hub prices eased. Henry Hub first of month averaged $3.07 per mmBtu in Q3 versus $3.44 in Q2. BP expects an average gas marketing and trading result and a weak oil trading print.

In oil production and operations, realizations look broadly flat, including price lags on barrels tied to the Gulf of America and the UAE. Exploration write-offs should run about $0.1 billion higher than last quarter. Q3 will also include post-tax adjusting items for asset impairments of $0.2 billion to $0.5 billion across segments.

A little more volume with softer realizations and weaker oil trading shifts attention to costs, cash flow, and capital returns.Investors will watch buyback cadence, capex discipline, and guidance when BP posts Q3 results.