BP PLC (BP.US) announced the appointment of Meg O'Neill as its new Chief Executive Officer (CEO), effective April 2026. O'Neill will join from Woodside Energy, where she has served as CEO since 2021. JPMorgan has assigned a neutral rating to BP, with a target price of $480 by June 2027.
The board's decision, led by Chairman Albert Manifold, marks a bold move for several reasons: 1) This is the first time in BP's over 100-year history that an external CEO has been appointed. 2) BP stated that this move does not signify a shift in direction but aims to accelerate its transformation into a leaner, more efficient, and more profitable company. Investors, however, may focus on the potential for deeper strategic changes, with the chairman emphasizing the "need for increased rigor and diligence." 3) JPMorgan analyst Nick Morgan, who covers Woodside Energy, noted that while the company's portfolio performed well under O'Neill's leadership, certain capital allocation decisions—such as the Louisiana LNG project—sparked some investor debate.
Outgoing CEO Murray Auchincloss mentioned that he had expressed willingness to step down once a suitable successor was found when Manifold became chairman earlier this year. Overall, JPMorgan expects investors to accept this transition positively and remain open to reassessing BP's strategic agenda with fresh perspectives.
The bank maintains a cautious stance on the energy sector, with Shell (SHEL.US) being the only major oil company rated "Overweight," primarily due to its 8% free cash flow yield and strong risk resilience, offering a favorable risk-reward profile.
**Transition Plan** Meg O'Neill's appointment will take effect on April 1, 2026. Murray Auchincloss, who has served as permanent CEO since early 2024, will step down immediately and remain as an advisor until December 2026 to ensure a smooth transition. Carol Howle, Executive Vice President of Leadership Team, Supply, Trading & Shipping, will serve as interim CEO until April 2026.
**Meg O'Neill's Background** O'Neill, a U.S. citizen, has been CEO of Woodside Energy since 2021. She joined the company in 2018 and previously held roles including Chief Operating Officer and Executive Vice President of Development. Before Woodside, she spent over 20 years at ExxonMobil (XOM.US), overseeing global technical, operational, and leadership responsibilities. BP highlighted her achievements at Woodside, including driving business improvements, strengthening financial discipline, and leading the acquisition of BHP Petroleum.
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