BP p.l.c. (BP): Business Model Canvas [Dec-2025 Updated]

You're looking at one of the biggest energy pivots in history, and honestly, it's a tightrope walk. As someone who's spent two decades mapping these giants, I can tell you BP p.l.c.'s Business Model Canvas isn't just a chart; it's their survival guide. They are balancing the cash cow-hydrocarbons-while pouring capital into the future, evidenced by their $14.5 billion Capex guidance for 2025, funded partly by expected divestment proceeds above $4 billion this year. This model shows exactly how they structure this massive bet on both oil and green energy to keep shareholders happy. It's a complex balancing act. See the full nine blocks below to understand their strategy.

BP p.l.c. (BP) - Canvas Business Model: Key Partnerships

You're looking at the structure of BP p.l.c.'s alliances, the crucial external relationships that help execute its strategy. These aren't just handshake deals; they involve billions in capital and massive capacity targets. Here's the breakdown of the key players as of late 2025.

Lightsource BP for global solar project development

The partnership with Lightsource BP is driving significant renewable capacity growth. The joint venture is targeting a massive portfolio.

• Target to develop 25 GW of solar capacity by 2025.
• Secured a $1.8 billion revolving credit and trade finance facility.
• This funding was supplied by 10 top-tier global financial institutions.
• The pipeline includes a 9 GW portfolio being developed exclusively for BP.
• Since its creation in 2010, Lightsource BP had developed 3.8 GW globally.

Harbour Energy for the Viking CCS carbon capture project

BP's involvement in the Viking CCS project, led by Harbour Energy, is central to its UK carbon capture strategy. BP holds a minority, non-operated stake.

Metric	Figure/Value	Context
BP Interest in Viking CCS	40% non-operated interest
Harbour Energy Interest	60% operating interest
Total CCS Scheme Investment (Humber by 2035)	£7 billion (approx. $9 billion)
Projected Economic Boost (Next ten years)	£4 billion (approx. $5.2 billion) in Gross Value Add (GVA)
Estimated Construction Jobs Created	10,000
Verified Storage Capacity (Viking fields)	300 million tonnes of CO2
Target Annual Storage by 2030	10 million tonnes of CO2
Onshore Pipeline Length	34 miles
Onshore Pipeline Project Cost	£200 million (approx. $250 million)

This project is designed to meet up to one-third of the UK Government's target to capture and store 30 million tonnes of CO₂ annually by 2030.

Iberdrola and Ørsted for European green hydrogen initiatives

BP is actively partnering to scale green hydrogen production, both for its own refinery needs and for broader industrial decarbonization.

With Iberdrola España on the Castellón plant:

• Plant capacity is 25 MW.
• Joint investment exceeds €70 million.
• The plant is expected to convert 200 GWh/yr of renewable energy.
• Expected to avoid 23,000 tons of CO₂ per year upon operation in the second half of 2026.

With Ørsted at the Lingen Refinery:

• Initial electrolyser size is 50 MW.
• Target production is 1 ton of hydrogen per hour, nearly 9,000 tonnes a year.
• This output could replace 20% of the refinery's current grey hydrogen consumption.
• Potential expansion up to 500 MW.
• A separate system supplied by Accelera by Cummins is a 100 MW electrolyzer system, aiming for 11,000 tons of green hydrogen annually, with commissioning expected in 2027.

Equinor and TotalEnergies on the Northern Endurance Partnership (NEP)

The Northern Endurance Partnership (NEP) reached Final Investment Decision (FID) in late 2024 for the East Coast Cluster transportation and storage infrastructure. Construction is set to start in mid-2025 for a planned start-up in 2028.

Partner	Equity Stake	Role
BP p.l.c.	45%	Shareholder, Operator on related NZT Power project
Equinor	45%	Shareholder
TotalEnergies	10%	Shareholder

The NEP infrastructure includes an offshore pipeline network of 145km. The initial capacity is set to transport and inject up to four million tonnes of CO₂ per year. The Endurance saline aquifer offers access to up to 1 billion tonnes of CO₂ storage capacity. The related contractor awards for the Teesside projects had a combined value of around £4 billion.

Strategic alliances for EV charging network expansion

BP Pulse is executing a significant capital commitment for its charging network build-out in the UK.

• BP Pulse unit plans to invest 1 billion pounds sterling in UK EV charging over the next decade.

BP p.l.c. (BP) - Canvas Business Model: Key Activities

You're looking at the core things BP p.l.c. (BP) is actively doing to run the business and execute its strategy as of late 2025. It's a mix of the traditional energy business and the pivot toward lower-carbon solutions, but the numbers show where the near-term focus really is.

Global upstream oil and gas exploration and production

BP is still heavily focused on getting hydrocarbons out of the ground, though the portfolio is being actively managed. The company sanctioned six major projects in 2025, and they hit 12 exploration discoveries year-to-date as of the third quarter.

Here's a look at the production scale based on early 2025 figures and targets:

Metric	Value	Context/Period
Total Reported Upstream Production	1.48 million barrels of oil equivalent per day (mboe/d)	Q1 2025
Liquids Production	1.09 million barrels per day	Q1 2025
Natural Gas Volumes	2,258 million cubic feet per day (mmcf/d)	Q1 2025
Targeted Production Range	2.3 million to 2.5 million barrels of oil equivalent per day	By 2030
Upstream Plant Reliability	96.8%	3Q25

The company is actively managing its portfolio; for instance, they took Final Investment Decision (FID) on Tiber-Guadalupe in the Gulf of America in 2025.

Refining, trading, and distribution of petroleum products

The downstream side, covering refining, trading, and products, showed strong margin performance in the middle of 2025. Refining availability was high, and the focus on cost reduction is clear through asset sales.

The refining and trading results for the second quarter of 2025 looked like this:

• Refining Marker Margin averaged $21.1 a barrel in Q2 2025.
• Realized refining margins for Q2 2025 were expected in the range of $0.3 billion to $0.5 billion.
• The underlying replacement cost profit before interest and tax for Customers & products was $1.7 billion in Q3 2025.
• Refining availability reached 96.6% in 3Q25.

BP is also executing on portfolio reshaping, expecting divestment and other proceeds received in 2025 to be above $4 billion.

Developing large-scale Carbon Capture and Storage (CCS) projects

BP is advancing several key CCS projects, often in partnership, to handle emissions from its operations and power generation.

Specific project commitments and targets include:

• Tangguh UCC (Indonesia): A $7 billion investment commitment, aiming to sequester 15 million tonnes of CO2 in its initial phase.
• Net Zero Teesside Power (NZT Power): Aims to capture up to 2 million tonnes of CO2 per year.
• Northern Endurance Partnership (NEP): Targeting CO2 removal of up to 27 MtCO2/year by 2030.

Operating a vast network of retail and convenience sites

The retail network remains a key customer interface, though BP is actively trimming its company-operated footprint as part of a cost-cutting strategy announced in late 2025.

Here are the scale numbers for the network:

Metric	Value	Context/Date
Total Retail Sites	2,850	End of 2023
EV Charge Points	>39,000	As of 2025 data snapshot
Divestment in Progress	About 10% of company-operated sites	Late 2025
US Acquisition (TravelCenters of America)	280-plus-site deal	2023

Investing in and developing low-carbon power and hydrogen projects

Following a strategic reset in early 2025, BP significantly narrowed its low-carbon focus, reallocating capital back to oil and gas. The funding for the energy transition, which includes hydrogen and CCS, is now set at $1.5-2 billion yearly.

This represents a cut of more than $5 billion from prior guidance for the period, with low-carbon energy now targeted at less than 5% of total capex allocation.

The hydrogen portfolio has been high-graded to a focused set of 5-7 prioritized projects this decade, down from a pipeline of 30.

• Total low-carbon investment expected through 2030 is around $4 billion.
• Installed renewables capacity stands at 4.0GW.
• Hydrogen projects with FID taken as of early 2025: 4.
• Refinery-linked green hydrogen projects sanctioned: 125MW total (25MW Castellon, 100MW Lingen).
• Cancelled hydrogen project H2Teesside had a planned capacity of up to 1.2GW.

BP p.l.c. (BP) - Canvas Business Model: Key Resources

You're looking at the core assets that BP p.l.c. deploys to run its integrated energy business as of late 2025. These aren't just line items on a balance sheet; they are the physical, intellectual, and financial engines driving the company's strategy.

The foundation remains its massive upstream asset base. As of February 2025, BP reported its global oil and gas reserves of 9,549 mmboe (million barrels of oil equivalent). This resource base supports its production targets, which are being actively grown, with the company announcing its tenth exploration discovery of 2025 in August alone.

Midstream infrastructure provides the crucial link between resource extraction and market delivery. This includes a complex network of physical assets:

• Refining Capacity: BP operates a global refining footprint, historically including a share in 16 refineries worldwide. In the US alone, the Whiting refinery processes around 440,000 barrels of crude oil daily, representing about 40% of BP's global refining capacity.
• LNG Portfolio: Liquefied Natural Gas is a vital part of the transition strategy. BP's objective to achieve an LNG supply portfolio of more than 25 mtpa (million tonnes per annum) by 2025 was expected to be beaten, up from 23 mtpa in 2023.

The downstream and customer-facing assets are anchored by its global retail presence, which is increasingly focused on lower-carbon mobility solutions. The scale here is significant:

Asset Category	Metric	Value
Global Retail Network	Number of Sites (2024 data)	21,200 sites
EV Charging Network	Total Charge Points (2024 data)	>39,000 points
UK EV Charging Network	Rapid/Ultra-fast Charge Points (Feb 2025)	Almost 3,500 points

The EV charging network is a key growth area, with BP aiming for over 100,000 charge points globally by 2030.

The transition strategy is materially supported by its renewable energy arm, Lightsource BP. While the 2021 target was to reach 25 GW by 2025, the latest reported figure for developed capacity provides a concrete measure of current scale:

• Lightsource BP's developed renewables capacity as of 2024 was reported at 8.2 GW.
• As of early 2025, the total global solar and storage development pipeline stood at 58 GW.

Finally, the intellectual capital and financial engineering expertise are critical differentiators. BP highlights its proprietary trading and risk management expertise as a distinctive advantage across the value chain. This capability is demonstrated by the scale of cash flow it can generate and manage, with 3Q25 operating cash flow reaching $7.8 billion, though the oil trading contribution in that specific quarter was noted as weak.

Finance: draft 13-week cash view by Friday.

BP p.l.c. (BP) - Canvas Business Model: Value Propositions

Reliable supply of essential oil and gas products globally is underpinned by current production levels, which as of late 2024, stood at 1.2 million barrels of liquids and 6.9 billion cubic feet of natural gas per day. BP is focused on value over volume, with a revised 2030 production target aiming for 2.3 to 2.5 million barrels of oil equivalent per day.

Integrated convenience retail and mobility solutions for consumers are a key focus, with the Customers & Products division posting an underlying profit before interest and tax of $1.7 billion for the third quarter of 2025. The company's convenience sites grew to 2,950 in the third quarter of 2024, and the company is reshaping its retail network, targeting an exit of about 10% of its company-owned sites.

Decarbonization solutions like CCS and hydrogen for industrial clients are supported by investment plans, though the focus has shifted. BP expects capital expenditure in transition growth engines to be above 40% of total investment in 2025, though revised annual transition growth investment is planned to be between $1.5 billion and $2 billion per year through 2027. Interim targets for 2025 include a 5% reduction in the carbon intensity of sold energy products against the 2019 baseline, and a 20% reduction in operational emissions (Scope 1 and 2) against the 2019 baseline. Two hydrogen projects reached final investment decision (FID) in 2024.

High-quality lubricants and specialty products, such as the Castrol brand, are part of a portfolio review, with reports indicating advanced talks to sell the unit for a valuation of over $8 billion. For the publicly listed BP Castrol K.K. entity, third quarter 2025 net sales increased by 11.1% year-over-year.

Shareholder returns are delivered via a resilient dividend and buybacks, with strong recent financial performance supporting these commitments. The company completed a $750 million share buyback program announced with the second quarter results, and announced a further $750 million buyback in the third quarter of 2025. The interim dividend was increased by 4% to 8.32 cents per ordinary share for the third quarter of 2025. BP aims for total dividends and share buybacks to be in the range of 30% to 40% of operating cash flow over time.

Here are the key financial metrics from the third quarter and nine months of 2025:

Metric	Value (Q3 2025)	Value (Nine Months 2025)
Profit Attributable to Shareholders	$1,509 million	$3,477 million
Underlying Replacement Cost Profit Before Interest and Tax (Total Group)	$5.3 billion	N/A
Operating Cash Flow	$7.8 billion	$7.79 billion (Q3 data point)
Revenue	$49.25 billion	N/A
Underlying Earnings Per Share (EPS)	$0.85	N/A

The company's strategic financial management is also evident in its asset sales and capital planning:

• Expected divestment proceeds for 2025: more than $4 billion.
• Completed or announced asset sale agreements in 2025: around $5 billion.
• Planned Capital Expenditure for 2025: around $14.5 billion.
• Planned Capital Expenditure for 2026 and 2027 frame: around $13-15 billion.

The current dividend yield is reported at 5.3%, compared to the present FTSE 100 average of 3.1%.

BP p.l.c. (BP) - Canvas Business Model: Customer Relationships

You're looking at how BP p.l.c. manages its diverse customer base, from massive industrial energy users to the everyday driver filling up their tank. It's a balancing act between high-touch, long-term strategic relationships and high-volume, digitally-enabled retail interactions. The numbers coming out of the Customers & Products segment in 2025 show this strategy is driving significant results, with an underlying replacement cost (RC) profit before interest and tax of $1.7 billion for the third quarter of 2025.

Dedicated account management for large B2B industrial contracts

For the largest industrial customers, the relationship is managed through dedicated structures, often involving integrated energy solutions that go beyond simple fuel supply. While specific contract volume data is internal, the scale of BP's ecosystem is evident through its partnerships. For instance, Radius, a partner offering fleet mobility and connectivity solutions, states they are trusted by over 470,000 businesses globally, working with leading partners including BP. This suggests a deep, managed relationship layer supporting large-scale B2B needs across fuel cards, telematics, and EV charging infrastructure.

Digital loyalty programs for retail and fuel customers

BP has consolidated its retail customer engagement onto a new, integrated digital platform called earnify™. This focus on digital experience is key to driving spend. The goal is a seamless experience, with the entire join process, from downloading the app to starting the pump and earning points, taking less than 30 seconds. The program is currently live across about 8,000 sites, covering BP and Amoco locations, with integration for Thorntons and Travel Centers of America underway.

The earning structure is designed to incentivize both fuel and in-store purchases:

• Earn 1 point per dollar spent on fuel.
• Earn 2 points per dollar spent at the convenience store.
• New members receive an exclusive welcome offer of 250 points.
• Customers using earnify™ linked payment methods automatically receive an always-on saving of 5 cents per gallon on fuel purchases at BP and Amoco stations.

This focus on loyalty is critical, as industry data suggests members of loyalty programs generate 12-18% more incremental revenue growth per year than non-members.

Corporate Power Purchase Agreements (PPAs) for low-carbon energy

Customer relationships in the low-carbon space are formalized through long-term Corporate Power Purchase Agreements (PPAs), primarily facilitated through Lightsource bp. While the company secured 10 renewable PPAs totaling 1.3GW in 2024, they are actively creating new opportunities for 2025. Specifically, they have made a 500MW utility-scale solar and storage portfolio available for PPAs in the Iberian Peninsula in 2025. The overall global development pipeline supporting these agreements stands at 58 GW.

Self-service model at retail sites and EV charging points

The self-service model is central to the evolving mobility and convenience offering, particularly with the expansion of BP Pulse EV charging. In the UK, BP noted that more than 50% of its customers visit retail sites purely for shop purchases, indicating a high reliance on efficient, self-service retail environments. The EV charging network is growing rapidly to support this self-service demand.

Key figures for the EV charging network include:

Metric	Value	Context/Date
Global Charge Points Installed (2023)	About 29,000	Year-end 2023
Global Charge Points Expected (2025)	40,000	Target for 2025
Rapid/Ultra-Fast Charge Points (UK)	Almost 3,500	As of early 2025
UK Retail Sites with BP Pulse Charging	Over 225	As of early 2025

The company has stated an expectation that its EV business would turn a profit in 2025.

Investor relations focused on capital discipline and returns

Customer relationships extend to the investment community, where BP's focus is clearly articulated around financial discipline and shareholder returns. The expected capital expenditure for 2025 is set at around $14.5 billion, with a stable capital frame of $13-15 billion planned for 2026 and 2027. The company maintains a target for net debt of $14-18 billion by the end of 2027. The policy is to maintain a resilient dividend, with the dividend per ordinary share for the third quarter of 2025 announced at 8.320 cents. Furthermore, BP expects total shareholder distributions, including buybacks, to be 30-40% of operating cash flow, over time.

BP p.l.c. (BP) - Canvas Business Model: Channels

You're looking at how BP p.l.c. gets its products and services to the customer base, which is a mix of physical locations, massive trading operations, and emerging digital/low-carbon channels. It's a complex mix, honestly.

Global network of 21,200 branded retail service stations

BP maintains a vast physical footprint for direct consumer sales. As of the latest available data, the company has around 21,200 service stations worldwide, operating under brands including BP, Amoco in the U.S., and Aral in Germany. This network is being strategically enhanced with convenience offerings.

The focus on strategic convenience sites shows growth, with plans to add about 150 new sites globally by the end of 2025. For context on the scale in key markets, as of October 22, 2025, there were 1,177 BP locations in the United Kingdom alone.

Geographic Area	Number of Sites (as of late 2025/latest data)	Branded Presence
Global Total	21,200	BP, Amoco, Aral
United Kingdom	1,177	BP
Strategic Convenience Sites (Global)	Targeting addition of ~150 by end of 2025	Various (e.g., EasyAuchan)

Wholesale commodity sales via trading desks and long-term contracts

The trading desks move massive volumes of crude oil, refined products, and gas under contracts. Looking at the first quarter of 2025, the revenues from contracts with customers illustrate the scale of these wholesale flows.

The overall adjusted EBITDA for the group in Q1 2025 was $8,701 million, showing the financial engine behind these sales channels.

Commodity Type (Q1 2025 Revenue from Contracts)	Amount ($ million)
Oil products	29,840
Natural gas, LNG and NGLs	5,751
Crude oil	548
Total Revenue from Contracts with Customers (Q1 2025)	39,067

Also important are the derivative transactions that support this, with Other operating revenues (principally commodity derivative transactions) reported at $9,813 million in the first quarter of 2025.

Midstream assets including LNG carriers and gas pipelines

BP uses its midstream assets to secure and transport product, which is critical for its global trading reach. The company has been actively growing its liquefied natural gas (LNG) supply capability.

BP expects its LNG supply portfolio to exceed 25 million tonnes per annum (mtpa) by 2025, up from around 23 mtpa in 2023. To support this, BP partnered to invest over $1 billion in six new LNG carriers.

• LNG Supply Portfolio Target for 2025: More than 25 mtpa
• Investment in New LNG Carriers: Over $1 billion
• Miles of Pipeline (North America, historical data): Nearly 3,500 miles
• Daily Throughput (North America, historical data): More than 1.3 million b/d of oil, refined products, and natural gas

Digital platforms for EV charging and customer loyalty

The digital channel is centered on the BP Pulse network and associated loyalty programs. The company is aggressively scaling its charging infrastructure.

As of the 2024 Annual Report data, BP had >39,000 EV charge points globally. The stated goal is to reach 100,000 chargers by 2030, up from 29,000 in 2023. In Germany, the Aral pulse network hit 5 million vehicles charged by March 2025.

The Customers & Products segment's underlying performance reflects activity across these channels; the underlying RC profit before interest and tax for the second quarter of 2025 was $1.5 billion.

Metric	Value/Target	Date/Context
Global EV Charge Points	>39,000	As of 2024 Annual Report
Global EV Charge Points Target	100,000	By 2030
Aral pulse Vehicles Charged	5 million	By March 2025
US EV Charging Investment Commitment	$1 billion	By 2030

Direct sales to industrial customers for hydrogen and CCS

This channel focuses on large-scale, long-term decarbonization solutions for industry. While direct sales volumes aren't explicitly detailed, investment and project scale indicate the channel's direction.

BP is focusing on a select portfolio of 5-7 high-graded hydrogen and Carbon Capture and Storage (CCS) projects this decade. In 2024, BP allocated $1.6 billion to its low-carbon energy business, which includes hydrogen and CCS.

The broader CCS sector saw commercial investment reach a record US $6.4 billion in 2024, providing a market context for BP's direct industrial offerings.

• Low-Carbon Energy Business Investment (2024): $1.6 billion
• Targeted Hydrogen/CCS Projects by 2030: 5-7
• CCS Commercial Investment Context (2024): Record US $6.4 billion
• Projected CCS Reduction (Below 2° Scenario): 5.5Gt of CO2 by 2050

Finance: draft 13-week cash view by Friday.

BP p.l.c. (BP) - Canvas Business Model: Customer Segments

Global B2B industrial users requiring large-scale energy and CCS

This segment is served through the Gas & Low-carbon energy division, alongside traditional energy supply contracts. For the first half of 2025, the Gas & Low-carbon segment generated an underlying replacement-cost (RC) profit before interest and tax of $1.46 billion. BP p.l.c. expects to invest around $10 billion in oil and gas in 2025. In long-term energy scenarios, Carbon Capture and Storage (CCS) is projected to account for 5.5Gt of emissions reduction by 2050 in a Below 2° scenario.

B2B customers are also served by the Oil Production & Operations segment, which delivered an RC profit before interest and tax of $2.1 billion for the third quarter of 2025.

B2B Customer Focus Areas:

• Industrial energy supply contracts.
• Low-carbon solutions deployment.
• CCS project participation.

B2C motorists and EV drivers using retail and charging networks

The customer-facing operations fall under the Customers & Products segment. The underlying RC profit for this segment in the third quarter of 2025 was $1.7 billion. Underlying earnings in the customer business were up approximately 50% year-on-year in the second quarter of 2025. In the United States, BP brands like ARCO/ampm, Amoco, and Thorntons operate nearly 8,000 retail sites across 46 states and the District of Columbia. For EV charging, BP Pulse aims for more than 100,000 charge points globally by 2030, with about 90% being rapid or ultra-fast. As of early 2025, the network included almost 3,500 rapid and ultra-fast charge points. In the UK, more than 50% of BP's customers visit retail sites just for shopping.

Wholesale commodity traders and utility companies

These customers are served through the trading and midstream operations within the Customers & Products segment. The underlying RC profit for the Customers & Products segment in the first quarter of 2025 was $0.7 billion. The products part of the segment saw stronger realized refining margins in the range of $0.1 - $0.3 billion in the third quarter of 2025. The oil trading contribution in the third quarter of 2025 was noted as weak.

Aviation and shipping sectors (B2B fuel and lubricants)

Fuel and lubricant sales to these large transport sectors are part of the Products business within the Customers & Products segment. The segment's overall underlying RC profit for Q3 2025 was $1.7 billion. The company is executing a strategic review of Castrol, its lubricants business.

Shareholders seeking capital growth and income

Shareholders are a key segment targeted by capital allocation policies. BP p.l.c. maintains a policy to target total shareholder distributions of 30-40% of operating cash flow, over time. For the third quarter of 2025, profit attributable to shareholders soared 464% year-on-year to $1.16 billion. The interim dividend per ordinary share was increased by 4% to 8.32 cents following Q3 2025 results. The company also announced a $0.75 billion share buyback for the third quarter, which was completed on October 31, 2025. Analysts forecast BP's earnings will grow a standout 25.3% per year to the end of 2027. As of late November 2025, the stock offered a dividend yield of 5.5%.

Key Financial and Operational Metrics by Segment (2025)

Metric	Segment	Value	Period/Notes
Underlying RC Profit (Underlying Result)	Customers & Products	$1.7 billion	Q3 2025
Underlying RC Profit (Underlying Result)	Gas & Low-carbon	$1.46 billion	H1 2025
RC Profit before Interest and Tax	Oil Production & Operations	$2.1 billion	Q3 2025
Profit Attributable to Shareholders	Group	$1.16 billion	Q3 2025
Reported Profit Attributable to Shareholders	Group	$2.9 billion	H1 2025
Total Shareholder Distributions Target	Shareholders	30-40%	Of operating cash flow, over time
Interim Dividend per Ordinary Share	Shareholders	8.32 cents	Post Q3 2025 announcement
Share Buyback Announced	Shareholders	$0.75 billion	For Q3 2025
US Retail Sites (ARCO/ampm, Amoco, Thorntons)	B2C Motorists	Nearly 8,000	Across 46 states
BP Pulse Rapid/Ultra-Fast Charge Points	B2C EV Drivers	Almost 3,500	As of early 2025

Shareholder Return Metrics:

• Interim dividend per ordinary share: 8.32 cents (post Q3 2025 increase).
• Q3 2025 profit attributable to shareholders: $1.16 billion.
• Targeted shareholder distributions: 30-40% of operating cash flow.
• Forecasted annual earnings growth (to end-2027): 25.3%.
• Reported dividend yield (as of Nov 29, 2025): 5.5%.

BP p.l.c. (BP) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive BP p.l.c.'s spending engine right now. It's all about balancing massive ongoing operational needs with significant future bets, all while trying to chip away at the baseline costs. Here's the quick math on where the money is going.

Capital Expenditure Guidance and Allocation

BP p.l.c. has set a clear capital expenditure (Capex) guidance for the current year. The company continues to expect total capital expenditure to be around $14.5 billion for 2025. Some reports indicate an expectation of approximately $15 billion for 2025. This spending is being reallocated; for instance, capital expenditure in the first quarter of 2025 was $3.6 billion, which was lower than the $4.3 billion spent in the same period of 2024, largely reflecting reduced capital expenditure on low carbon energy.

The investment focus is shifting within that total Capex frame, which remains around $13-15 billion for both 2026 and 2027. Oil and gas investment is being increased to around $10 billion per year.

Structural Cost Reduction and Operating Expenses

A major focus area is driving down the cost base. BP p.l.c. has significantly increased its target for structural cost reductions to between $4-5 billion by the end of 2027, measured against 2023 levels. For context on current spending, the underlying operating expenditure for the third quarter of 2025 was $5,487 million. Over the first nine months of 2025, the cumulative underlying operating expenditure reached $16,248 million.

The company is seeing progress here; for example, the Customers & Products segment reflected lower underlying operating expenditure in the third quarter.

Upstream and Decarbonization Costs

Costs associated with the core upstream business are supported by significant project execution. All six of the major oil and gas projects planned for 2025 are online, with four starting ahead of schedule. The investment in oil and gas is targeted at approximately $10 billion annually.

For the low-carbon transition, the investment strategy is now more selective. Transition investment is planned to be in the range of $1.5 billion to $2 billion per year. This new allocation is over $5 billion per year lower than previous guidance for this area. Furthermore, the low carbon energy segment has a specific structural cost reduction target of at least $0.5 billion per annum by 2027.

You need to see the key financial targets side-by-side to grasp the scale of the cost management effort.

Cost/Target Area	Financial Number/Range	Timeframe/Context
Total Capital Expenditure (Capex) Guidance	Around $14.5 billion	For 2025
Organic Capital Expenditure	Below $14 billion	For 2025
Structural Cost Reduction Target	$4-5 billion	By end of 2027
Oil & Gas Investment (Upstream)	Around $10 billion per year	Through 2027
Transition Investment (Low-Carbon)	$1.5-2 billion per annum	Through 2027
Low Carbon Energy Structural Cost Reduction	At least $0.5 billion per annum	By 2027
Net Debt Target	$14-18 billion	By end of 2027

The cost structure is clearly defined by these forward-looking capital deployment and efficiency goals. You can see the planned reduction in capital expenditure on the transition business compared to the increased focus on funding the core oil and gas assets.

• Upstream production reliability reached 96.8% in the third quarter of 2025.
• Refining availability was 96.6% in the third quarter of 2025.
• The company expects divestment and other proceeds to be above $4 billion in 2025.
• Gulf of America settlement payments for 2025 are expected to be around $1.2 billion pre-tax.

The cost management strategy is underpinned by a commitment to deliver shareholder distributions of 30-40% of operating cash flow over time.

Finance: draft 13-week cash view by Friday.

BP p.l.c. (BP) - Canvas Business Model: Revenue Streams

The core of BP p.l.c.'s revenue generation remains rooted in its traditional energy businesses, though the company is actively managing its portfolio for capital returns. For the nine months of 2025, the company reported an Underlying RC profit of $5.944 billion. This figure is down from the $7.746 billion reported for the same nine-month period in 2024. You see the scale of the major operating segments by looking at their third quarter 2025 results before interest and tax.

Here's a look at the profit contribution from the main operating segments for the third quarter of 2025, which gives you a sense of the revenue-generating power behind those streams:

Revenue Stream Proxy (Segment)	RC Profit Before Interest and Tax (3Q 2025)
Sales of crude oil and natural gas from upstream operations (Oil production & operations)	$2.1 billion
Refined products, lubricants, and petrochemicals (Part of Customers & products)	$1.6 billion
Natural gas sales (Gas & low carbon energy)	$1.1 billion

Beyond core operations, BP p.l.c. continues to realize cash from asset sales as part of its simplification strategy. The company now expects divestment and other proceeds to be above $4 billion in 2025. This is an increase from prior expectations of between $3 billion and $4 billion for the year. For the first nine months of 2025, the actual divestment and other proceeds realized totaled $1.712 billion.

Other specific cash inflows contributing to the overall revenue picture include:

• Other proceeds for the nine months of 2025 included $1.0 billion from the sale of a non-controlling interest in the subsidiary holding the 12% share in the Trans-Anatolian natural gas pipeline (TANAP).
• The company reported $28.0 million in divestment and other proceeds for the third quarter of 2025 alone.
• Underlying earnings in the customers business were up approximately 50% year-on-year in the second quarter of 2025, reflecting strong performance in retail and convenience sales.

Finance: draft 13-week cash view by Friday.