Subject: OT Exxon and BP
Divergence of Exxon and BP over the last 25 years is remarkable.

BP bought Amoco in 1998 and became the third largest oil company in the world. Exxon bought Mobil in 1999. At the time of Amoco purchase, the market cap of BP and Exxon was about equal. BP’s market cap peaked in 2001. Today Exxon’s market cap is about 6 times BP’s.

Of course the Horizon oil spill was the major factor in BP’s valuation plunge. It was forced to divest many prized assets to pay damages.

But another factor has been its attempt to become a more green energy company by cutting oil and gas production and investing in green energy. This has increased debt and reduced cash for share buybacks and dividends that Exxon and other rivals have done.