What Will BP Do With Its Cash Hoard?

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Today, energy analysts Joel South and Taylor Muckerman look at what BP (NYSE: BP  ) could do with their growing cash pile.

After divesting a huge number of assets to pay for the damage from its Gulf of Mexico spill, the company has more options now than a few years ago.

BP is looking to reinvest a large part of the money, but Joel thinks the company is somewhat stuck. While many investors are hoping it'll raise its dividend, Joel thinks that's unlikely. If anything, a share repurchase is more likely, and it's certainly something investors need to watch today.

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Joel South, Taylor Muckerman, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On October 23, 2012, at 8:46 AM, manolosf wrote:

    BP's Cash Hoard?!! How about cleaning up the Gulf of Mexico...oh, wait, that would be reasonable, responsible, and right. OF COURSE THEY WON'T DO THAT! They'll waste it on blow, hookers and tax evasion again.

    Thanks for NOT telling the right story here. Even if they "divesting a huge number of assets to pay for the damage from its Gulf of Mexico spill". BP DOES have "more options now than a few years ago." That option should be to FINISH cleaning up the spill and DEVELOPING NEW TECHNOLOGY to avoid and clean spills in the future, but they won't and we'll have to suffer AGAIN the next time they have a spill.

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Joel South

Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.

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