BP PLC Stock News Today (Dec. 18, 2025): CEO Shake‑Up, Meg O’Neill Named Successor, and Why BP Shares Are Back in Play

BP PLC stock (LSE: BP.; NYSE: BP) is the kind of name that can drift into the background when oil is boring and the strategy is stable. December 18, 2025 is not one of those days.

A surprise leadership change has put BP back on traders’ “must-watch” screens: BP confirmed that CEO Murray Auchincloss is stepping down effective today (Thursday, Dec. 18), with long-time BP executive Carol Howle taking over as interim CEO. The board has appointed Woodside Energy chief Meg O’Neill as the next permanent CEO, effective April 1, 2026. ^[1]

BP’s London-listed shares were trading around the mid‑420s pence early Thursday, according to market data providers tracking the session. ^[2]

What matters for investors now isn’t just “who’s in charge,” but what this leadership switch implies about BP’s strategy, capital returns, and even the long-running takeover chatter that refuses to die.

The headline move: BP picks an “outsider” CEO—historic for the company

BP’s board is making two statements at once:

Urgency: Auchincloss is out immediately (today), and an interim CEO is in place. ^[3]
Break with tradition: Meg O’Neill becomes BP’s first external CEO in more than a century and the first woman to lead any of the world’s top five oil majors, according to Reuters. ^[4]

O’Neill is currently CEO of Australia’s Woodside Energy and previously spent 23 years at Exxon Mobil, BP said in its regulatory announcement. ^[5]

The timeline matters for BP stock holders:

Dec. 18, 2025: Auchincloss steps down; Carol Howle becomes interim CEO. ^[6]
April 1, 2026:Meg O’Neill starts as CEO. ^[7]
Through Dec. 2026: Auchincloss remains in an advisory role during the transition. ^[8]

In its statement, the board framed the shift as a chance to accelerate a push toward becoming “simpler, leaner, and more profitable.” ^[9]

Why BP stock investors care: activists, speed, and a “more aggressive” reset

This isn’t happening in a vacuum. Reuters notes BP has faced sustained pressure from activist investor Elliott Investment Management, and BP’s chair Albert Manifold has talked publicly about the need for transformative change. ^[10]

In Reuters’ roundup of analyst reaction published today, multiple firms argued the market could view the change positively—less because investors were rejecting BP’s direction outright, and more because they wanted faster execution and a bolder portfolio shake-up:

Piper Sandler said the change could ultimately be positive for the stock and hinted at demand for a more aggressive approach in “scope and pace.” ^[11]
Scotiabank’s Paul Cheng suggested an outsider CEO can act as a “disruptive change agent” without internal legacy baggage. ^[12]

This is the subtext: BP’s board seems to be signaling impatience with incrementalism.

Reuters’ big framing: BP’s strategic fork—“build, buy, or be bought”

One of the most market-moving pieces of analysis today came from Reuters energy columnist Ron Bousso, who described BP’s post-announcement reality in three blunt options: “build, buy or be bought.” ^[13]

That framing resonates because BP has been stuck in a weird middle ground for years: too big to be a normal takeover, not big enough (in market value and perceived quality) to be treated like the “must-own” mega-majors.

Reuters pegged BP as a roughly $90 billion company in its analysis. ^[14]

1) “Build”: doubling down on oil and gas (again)

Under Auchincloss, BP reversed parts of its earlier renewables-heavy strategy—scrapping plans to reduce oil and gas output and stepping back from aggressive renewables expansion, Reuters reported. ^[15]

Reuters also reported BP’s current spending framework (2025–2027) targets total capex of roughly $13–$15 billion per year, with around $10 billion directed to oil and gas. ^[16]

2) “Buy”: O’Neill’s deal-making reputation becomes relevant

O’Neill’s profile matters because she’s not just an operator; she’s been a growth-and-M&A leader at Woodside. Reuters highlights Woodside’s 2021 acquisition of BHP’s petroleum assets in a roughly $28 billion merger that expanded Woodside’s global footprint. ^[17]

If BP investors start believing O’Neill is being hired to do bold portfolio moves (acquisitions, divestments, or both), that can rerate the stock—especially for a company that the market has often treated as “strategically fuzzy.”

3) “Be bought”: the takeover rumor that never dies

BP has been a recurring character in Big Oil consolidation fan-fiction. Reuters notes speculation has persisted that BP could be acquired by a larger rival, and it specifically points out that Shell publicly ruled out pursuing BP after mid‑2025 media speculation. ^[18]

What changes today is psychology: appointing an outsider CEO can be interpreted two opposite ways:

Defense: The board is trying to fix BP fast and avoid becoming prey.
Preparation: A sharper, simpler BP (after divestments and restructuring) can be easier to buy.

Neither outcome is guaranteed. But for BP stock, narrative gravity matters—because valuation multiples often move on narrative long before balance sheets catch up.

Capital returns and balance-sheet cleanup remain a core BP stock driver

Even with the CEO drama, BP still trades like a “capital returns + oil price” instrument.

BP’s share buyback program

BP disclosed a share buyback program with a maximum of around $750 million running up to and including Feb. 6, 2026, with the stated purpose of reducing issued share capital. ^[19]

Divestments: the $20 billion target

Reuters reiterated that BP has pledged $20 billion in asset divestments by 2027 as part of a plan to reduce debt and costs. ^[20]

That divestment target is central to the “BP stock forecast” debate because it affects three things investors obsess over:

net debt trajectory (and interest costs),
buyback/dividend capacity,
and whether BP can simplify enough to close its valuation gap versus peers.

Oil prices today: still low, but rebounding—macro matters for BP shares

BP may be changing CEOs, but it still sells molecules into the real world where prices are moody.

Early Thursday, Reuters reported Brent crude around $60.10 and WTI around $56.38 as markets weighed potential new U.S. sanctions on Russia and uncertainty around enforcement of a U.S. blockade of sanctioned Venezuelan tankers. ^[21]

Zoom out one notch: just two days earlier, Reuters reported Brent settled at $58.92—its lowest settlement since February 2021—amid oversupply worries and optimism about Russia‑Ukraine peace progress potentially easing sanctions and adding supply. ^[22]

For forward-looking BP stock investors, the important word is not “today,” it’s “next year.” Reuters’ Dec. 16 oil report also cited Barclays analysts expecting Brent to average $65/bbl in 2026, arguing the market is already pricing in a projected surplus. ^[23]

Translation: BP’s 2026 earnings power may depend as much on cost control and portfolio quality as on crude price heroics.

BP stock forecast: what analysts are projecting right now

Analyst targets are not prophecies; they’re a messy crowd estimate. Still, they shape flows, especially around big leadership events.

For BP’s London listing (BP.), Investing.com’s compiled analyst data shows an average 12‑month price target around 476p, with a high near 592p and a low around 375p (as displayed on its consensus estimates page). ^[24]
For BP’s U.S. ADR (NYSE: BP), MarketBeat shows an average price target of $43.14, with a high of $66.00 and a low of $26.50. ^[25]

And today’s event adds a qualitative layer: Reuters quoted analysts describing the CEO change as potentially positive for the stock and as a sign the board wants faster, more decisive restructuring. ^[26]

The next catalysts for BP PLC stock into 2026

Here’s what can realistically move BP shares from here—without requiring any science-fiction plot twists:

Interim period execution (now through March 2026): Carol Howle will be running the company during an unusually sensitive window. Any operational surprises, divestment updates, or guidance changes could be amplified. ^[27]
Meg O’Neill’s “first 100 days” expectations (from April 2026): Investors will look for clarity on portfolio moves, spending discipline, and whether BP accelerates simplification. ^[28]
Divestment progress and capital returns: The $20 billion divestment goal and the ongoing buyback structure are direct inputs into valuation. ^[29]
Oil price regime: With Brent hovering around $60 and the market debating oversupply versus geopolitical disruptions, BP’s cash flow sensitivity remains high. ^[30]
M&A narrative: Reuters’ “build, buy, or be bought” framing keeps consolidation on the table as a market theme, even with Shell previously denying it was pursuing BP. ^[31]

Bottom line: BP stock is trading a strategy story again

December 18, 2025 reframes BP PLC stock from “oil major with a decent yield” into “turnaround with optionality.”

The board’s decision to bring in Meg O’Neill—an external CEO with a deal-making track record—while removing the current CEO immediately is a high-signal move. It tells investors BP is not looking for gentle continuity; it’s looking for speed. ^[32]

The bullish case for BP shares from here is basically: simplify faster, sell assets cleanly, keep capital returns credible, and execute in a commodity environment that may stay choppy. The bearish case is simpler: if oil stays low and restructuring drags, the market’s patience runs out—again. ^[33]

BP CEO reacts to Q3 earnings, $2.5 billion headline loss