Two years ago this month was when we all witnessed the Deepwater Horizon disaster and tragedy. With the death of 11 workers, over 200 million gallons of crude leaking out, tainted reputation, and $25 billion in fines and cleanup, BP (BP) is not only still surviving, but thriving today. Shortly after the disaster, the company lost billions of dollars in market cap with its share price diving 55%. At the time, it appeared that BP would never make it back and would probably file for bankruptcy. But, come back it did and the company is now back as one of the leaders in the energy sector and one I firmly to be a good investment because it is here to stay – and grow.
Like one of those clown Bop Bags that come right back up after they are hit, BP is still alive and kicking and even once again drilling in underwater canyons off Louisiana. To cover lawsuits over economic damages, medical costs, and property loses, BP estimates settlements to be around $7.8 billion, in addition to penalties up to $18 billion for violations related to the Clean Water Act. But, faded memories along with great public relations campaigns keep today’s investors and shareholders looking more at oil prices than the price of cleaning up beaches. The company’s stock price is up to almost normal levels and BP is back to paying dividends.
A sign of getting back to some sense of normalcy and then some is that the company in February announced it is raising its dividend from $0.To continue reading, click here.