02 July 2015

Europe/United Kingdom
Equity Research
Integrated Oil & Gas

BP (BP.L)
Rating UNDERPERFORM*
Price (02 Jul 15, p) 437.40 COMMENT
Target price (p) 420.00¹
Market cap. (£ m) 79,955.66
Enterprise value (US$ m) 149,637.26 Global settlement...where from here?
*Stock ratings are relative to the coverage universe in each
analyst's or each team's respective sector. ■ TP unchanged / Maintain U/P. BP has reached 'agreements in principle' to
¹Target price is for 12 months. settle all federal and state claims arising from the Macondo oil spill
amounting to up to $18.7bn (or ~$10bn higher than BP's provision), which is
Research Analysts still subject to execution of definitive agreements (we assume to be
Thomas Adolff approved by 2H16). The total pre-tax charge now stands at ~$53.8bn using
44 20 7888 9114 1Q15 as the base, which is ~$1bn higher than our estimate. On a post-tax
thomas.adolff@credit-suisse.com discounted basis, it is slightly accretive as the portion of non-tax deductible
Ilkin Karimli charges (eg the CWA fine) is lower and the payment schedule of 15-18
44 20 7883 0303 years is more favorable (CS at 10 years). While changes are immaterial to
ilkin.karimli@credit-suisse.com our valuation, this settlement should be viewed as removing most of the tail
risks and allowing BP to be more focused operationally and strategically.
Justin Teo
44 20 7888 9484 ■ Strategic pursuit? Like many of its peers, BP's resource base sits on the
justin.teo@credit-suisse.com 'wrong' side of the cost curve, in our view. Amongst the large caps, COP and
Specialist Sales: Jason Turner APC look much better. We see the need for BP to strengthen its base (more
44 20 7888 1395 long lived production) and high-grade its future options, including options
jason.turner@credit-suisse.com that come with greater capex flexibility. It is these downturns that give Majors
a better opportunity to inorganically seek resources. As Winston Churchill
once said 'Never let a good crisis go wasted', but it is ultimately about the
bid-ask spread. With gearing at the upper end of its guidance range of 10-
20%, we wonder whether any opportunities would be cash funded.
■ Global settlement on the key movers and shakers, which includes CWA
($5.5bn over 15 years), NRD ($7.1bn plus $0.2bn over 15 years), State
Claims ($4.9bn over 18 years), local claims of up to $1bn plus additional
interest charges. Regarding CWA, this resolves Phases 2 and 3, while BP
continues to challenge the ruling from Phase 1 (ie grossly negligent) to
protect the business from future litigations, according to BP. Bottom line, BP
believed that it has learned its lessons from past agreements (eg settlement
with the PSC in 2012 for $7.8bn, which subsequently rose and proved more
problematic) and this agreement should be more bullet-proof, although is still
subject to court order. Separate to these agreements, BP will also provide
an update on additional business economic loss claims with 2Q15 results.
■ Valuation: our TP is based on our DCF and comparative multiples.
Share price performance Financial and valuation metrics
Year 12/14A 12/15E 12/16E 12/17E
Revenue (US$ m) 329,525 244,313 304,228 327,530
484 EBIDAX (US$ m) 31,975.0 25,576.4 28,296.0 30,289.4
434 Pre-tax Profit Adjusted (US$ m) 19,394.00 10,006.93 16,517.26 19,147.16
CS adj. EPS (US$) 0.66 0.45 0.60 0.68
384
Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15 Prev. EPS (US$) — — — —
Price Price relative ROGIC (%) 9.1 7.0 8.6 9.2
P/E (adj., x) 10.34 15.23 11.44 10.06
The price relative chart measures performance against the
P/E rel. (%) 70.8 93.8 79.3 78.1
FTSE ALL SHARE INDEX which closed at 3624.5 on 02/07/15
On 02/07/15 the spot exchange rate was £.71/Eu 1. -
EV/EBIDAX (x) 3.8 5.5 4.6 4.3
Eu .9/US$1 Dividend (12/15E, c) 40.00 Dividend yield (%) 5.9
Performance over 1M 3M 12M Net debt (12/15E, US$ m) 24,826.5 GIC (12/15E, US$) 137,722.3
Absolute (%) -2.8 -1.2 -15.9 BV/share (12/15E, US$) 6.1 Current WACC 7.69
Relative (%) 1.2 0.7 -15.5 EV/GIC (x) 1.1 Number of shares (m) 18,279.76
Free float (%) 100.00
Source: FTI, Company data, Thomson Reuters, Credit Suisse Securities (EUROPE) LTD. Estimates.

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST
CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do
business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a
conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in
making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION®

Client-Driven Solutions, Insights, and Access
 02 July 2015

BP BP.L
Price (02 Jul 15): 437.40p, Rating: UNDERPERFORM, Target Price: 420.00p
Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Key earnings drivers 12/14A 12/15E 12/16E 12/17E
EBITDAX 39,010 27,184 33,566 36,531 Brent 98.9 60.3 76.0 80.0
Depr & amort (excl. goodwill) (15,163) (14,869) (14,712) (15,011) WTI 93.1 57.2 72.0 75.0
EBITDA 35,981 26,272 32,637 35,596 Oil Production 1,926 2,003 1,983 1,965
Exploration expense (3,029) (912) (929) (936) Gas Production 7,062 7,181 7,192 7,651
Goodwill impairment — — — — Total Oil and Gas 3,144 3,241 3,223 3,284
Other adjustments to EBIT — — — — Production
EBIT 20,818 11,403 17,925 20,584 Per share data 12/14A 12/15E 12/16E 12/17E
E&P 17,076 6,359 14,460 16,846 No. of shares (EOP) 18,385.9 18,303.6 18,520.9 18,734.6
R&M 4,441 6,813 5,264 5,538 CS adj. EPS (US$) 0.66
7 0.45
0 0.60
3 0.68
2
Chemicals — — — — Prev. EPS (US$) — — — —
Gas & Power — — — — DPS (12/15E, US$) 39.50 40.00 40.00 40.00
Others (699) (1,769) (1,800) (1,800) Book value per share 6.1 6.1 6.3 6.6
Net interest income (exp) (1,424) (1,396) (1,407) (1,437) Operating
(US$) cash flow per 1.78 1.20 1.30 1.35
Net non operating inc (exp) — — — — share (US$)
Share of associates/JVs' equity — — — —
Key ratios and 12/14A 12/15E 12/16E 12/17E
Exceptionals — — — —
valuation
Profit before tax 19,394 10,007 16,517 19,147
Taxes 7,035 1,608 5,270 6,242 Margins (%)
EBITDAX margin 11.8 11.1 11.0 11.2
Profit after tax 12,359 8,399 11,247 12,905
Extraordinary gain/(loss) (4,288) (474) — — EBIT margin 6.3 4.7 5.9 6.3
Non-controlling interest (minority) 223 196 196 196 Net margin 3.7 3.4 3.6 3.9
Valuation metrics (%)
Preferred dividends — — — —
Other analyst adjustments (4,288) (474) — — Div yield 5.8 5.9 5.9 5.9
Adjusted net income 12,136 8,203 11,051 12,709 FCF yield (%) 7.2 2.3 2.8 3.7
EV/EBIDAX (x) 3.8 5.5 4.6 4.3
Reported net income 7,848 7,729 11,051 12,709
P/E 10.3 15.2 11.4 10.1
P/B 1.1 1.1 1.1 1.0
Cash flow (US$ m) 12/14A 12/15E 12/16E 12/17E ROE analysis (%)
EBIT (CS) 20,818 11,403 17,925 20,584 ROE 10.1 7.4 9.7 10.6
Non Cash Items 15,163 14,869 14,712 15,011 ROGIC 9.1 7.0 8.6 9.2
Change in working capital 2,300 2,101 — — Asset turnover 115.9 86.2 105.9 110.9
Other operating cash flow (5,527) (6,480) (8,580) (10,342) Interest burden 0.93 0.88 0.92 0.93
Cash flow from operations 32,754 21,893 24,057 25,254 Tax burden 0.36 0.16 0.32 0.33
CAPEX (21,614) (19,088) (21,071) (21,564) Financial leverage 0.47 0.52 0.49 0.49
Disposals of PPE — — — — Credit ratios
Free cash flow to the firm 8,982 2,874 3,501 4,742 Net debt/equity 20.2 22.0 23.7 24.9
Acquisitions (131) — — — Interest coverage ratio 14.6 8.2 12.7 14.3
Divestments 3,491 1,740 683 — Dividend payout ratio 59.8 89.3 67.0 59.0
Exploration investment — — — —
Other investment/(outflows) (2,167) (912) (929) (936)
Cash flow from investment (20,421) (18,260) (21,317) (22,500) Source: FTI, Company data, Thomson Reuters, Credit Suisse Securities
Net share issue/(repurchase) (4,589) — — — (EUROPE) LTD. Estimates.
Dividends paid (5,850) (6,095) (5,903) (5,972)
Change in debt — — — —
Other financing cash in/(outflows) 549 378 — —
Cash flow from financing (9,890) (5,717) (5,903) (5,972) Long payment schedule: creates greater financial certainty…
Effect of exchange rates
activities — — — —
Movements in cash/equivalents 2,443 (2,084) (3,163) (3,218)
Net change in cash 2,443 (2,084) (3,163) (3,218)

Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E

Assets
Intangibles & Goodwill 32,775 32,442 32,442 32,442
PPE 130,692 132,767 138,442 144,995
Associates & JV 19,156 20,377 21,765 23,375
Inventory 18,373 14,925 14,925 14,925
Receivables 31,038 28,756 28,756 28,756
Other current assets 37,851 39,891 36,728 36,728
Other non-current assets 14,420 14,243 14,243 14,243
Total assets 284,305 283,400 287,301 295,464
Liabilities & equity
Payables (40,118) (37,817) (37,817) (37,817)
Net cash/(debt) 23,091 25,155 28,318 31,536
Other current liabilities 23,497 22,954 22,954 22,954
Total current liabilities 63,615 60,771 60,771 60,771
Provisions (incl Pensions) 54,424 52,316 50,872 48,884
Other non-current liabilities 30,533 32,262 29,099 29,099
Total liabilities 171,663 170,504 169,060 170,290
Ordinary equity 111,441 111,536 116,684 123,422
Minority interest 1,201 1,360 1,556 1,752
Total equity 112,642 112,896 118,240 125,174

BP (BP.L) 2
 02 July 2015

BP Financial Details
Figure 1: BP's Financial Details
Macro overview
2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Crude Oil prices ($/bbl)
WTI 95.05 94.14 97.93 93.11 57.19 72.00 75.00 75.00 75.00 80.00
Brent 110.95 111.96 108.85 98.94 60.29 76.00 80.00 80.00 80.00 85.00
Natural gas prices ($/mcf)
US Gas NYMEX 4.10 2.80 3.70 4.37 2.94 4.20 4.50 4.50 4.50 4.50
UK Gas (NBP) 8.95 9.17 10.32 8.47 6.45 6.35 7.10 7.16 7.16 7.34
Euro Gas 11.70 13.85 13.85 12.15 6.87 6.70 7.63 7.68 7.68 8.16
Refining margins ($/bbl)
US Midwest 24.68 27.86 21.78 17.36 17.70 13.37 15.12 15.12 15.12 15.12
CS NWE Indicator margin 4.74 7.50 4.50 5.32 7.76 6.45 6.18 6.08 5.78 5.50
Asia (Singapore) 13.43 13.53 12.29 10.86 11.05 10.93 10.70 10.50 10.50 10.50
Currency spot rates ($/FX)
US$/GBP 1.60 1.59 1.56 1.65 1.50 1.53 1.55 1.55 1.55 1.60

BP: Key operational data

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
E&P - production
Total liquids production (kbd) 2,157 2,056 2,012 1,927 2,003 1,983 1,965 2,001 2,009 2,000
Total gas production (mmcfd) 7,519 7,394 7,080 7,062 7,181 7,192 7,651 8,095 8,730 9,465
Total oil&gas production (kboed) 3,454 3,331 3,233 3,144 3,241 3,223 3,284 3,397 3,514 3,631
Growth YoY -9.7% -3.6% -2.9% -2.7% 3.1% -0.6% 1.9% 3.4% 3.5% 3.3%
Production ex-Russia 2,460 2,319 2,258 2,136 2,211 2,180 2,209 2,305 2,408 2,493
BP: P&L overview
2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Upstream 25,225 19,439 18,265 15,201 4,636 12,595 14,770 15,627 16,999 18,799
Russia 4,134 3,127 2,198 1,875 1,723 1,865 2,076 2,364 2,390 2,501
Downstream 6,013 6,454 3,632 4,441 6,813 5,264 5,538 5,628 5,580 5,581
Other businesses and corporate -1,656 -1,997 -1,898 -1,340 -1,490 -1,600 -1,600 -1,600 -1,600 -1,600
Consolidation adjustment -113 -576 579 641 -279 -200 -200 -200 -200 -200
Macondo provision 3,800 -4,995 -430 0 0 0 0 0 0 0
BP Operating profit (Clean) 33,603 26,447 22,776 20,818 11,403 17,925 20,584 21,818 23,169 25,080
Net interest expense -925 -1,263 -1,509 -1,424 -1,396 -1,407 -1,437 -1,498 -1,521 -1,522
Exceptional items 3,580 -6,091 -2,809 -7,415 -254 0 0 0 0 0
RC Pre-tax profit 32,678 25,184 21,267 19,394 10,007 16,517 19,147 20,320 21,648 23,558
Taxation -10,623 -7,592 -7,532 -7,035 -1,608 -5,270 -6,242 -6,645 -7,132 -7,548
Minority interest -397 -234 -307 -223 -196 -196 -196 -196 -196 -196
RC Profit 23,900 11,469 11,226 7,848 7,729 11,051 12,709 13,479 14,320 15,814
Exceptional items -2,242 5,889 2,202 4,288 474 0 0 0 0 0
Adjusted RC Profit (Clean) 21,658 17,358 13,428 12,136 8,203 11,051 12,709 13,479 14,320 15,814

P&L tax rate 32% 29% 35% 36% 16% 32% 33% 33% 33% 32%
Ordinary Shares - average (m) 18,904 19,027 18,930 18,386 18,304 18,521 18,735 18,950 19,168 19,384
Reported RC EPS ($) 1.26 0.60 0.59 0.43 0.42 0.60 0.68 0.71 0.75 0.82
Clean RC EPS ($) 1.15 0.91 0.71 0.66 0.45 0.60 0.68 0.71 0.75 0.82
Clean RC EPS (pence) 71.40 57.60 45.37 39.92 29.91 39.09 43.77 45.89 48.20 50.99
Clean EPS (ADR - US$) 6.87 5.47 4.25 3.96 2.69 3.58 4.07 4.27 4.48 4.89

DPS ($) 0.29 0.34 0.37 0.40 0.40 0.40 0.40 0.40 0.40 0.40
DPS (pence) 18.09 21.44 23.65 24.00 26.74 26.24 25.81 25.81 25.81 25.00
DPS (ADR - US$) 1.74 2.04 2.22 2.37 2.40 2.40 2.40 2.40 2.40 2.40

BP: Cash Flow overview

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Net income 21,658 17,358 13,428 12,136 8,203 11,051 12,709 13,479 14,320 15,814
Minorities 397 234 307 223 196 196 196 196 196 196
DD&A 11,135 12,586 13,510 15,163 14,869 14,712 15,011 15,607 16,247 16,778
Other (including expl exp) -5,581 -1,575 -977 2,941 -2,495 -458 -674 -902 -850 -946
Cash earnings ex-Macondo 27,609 28,603 26,268 30,463 20,773 25,501 27,242 28,379 29,913 31,842
GoM oil spill costs (post tax) -6,813 -2,382 -597 -9 -982 -1,444 -1,988 -428 -951 -951
Sources of funds 20,796 26,221 25,671 30,454 19,792 24,057 25,254 27,951 28,962 30,891
Working capital movements 1,358 -5,746 -4,571 2,300 2,101 0 0 0 0 0
Cash flow from operations 22,154 20,475 21,100 32,754 21,893 24,057 25,254 27,951 28,962 30,891
Total capex -20,244 -24,142 -24,671 -23,781 -20,000 -22,000 -22,500 -23,000 -23,500 -23,750
Dividends paid (cash; assumes 20% scrip take-up) -4,072 -5,294 -5,441 -5,850 -6,095 -5,903 -5,972 -6,040 -6,110 -6,179
Net cash flow from operations -2,162 -8,961 -9,012 3,123 -4,202 -3,846 -3,218 -1,089 -648 962
Acquisitions -8,909 -116 -67 -131 0 0 0 0 0 0
Divestments 2,732 11,528 21,999 3,491 1,740 683 0 0 0 0
Capital raising / buybacks / Scrip offset 74 122 -5,358 -4,589 0 0 0 0 0 0
Other 4,899 -1,592 -3,602 549 378 0 0 0 0 0
Surplus/deficit -3,366 981 3,960 2,443 -2,084 -3,163 -3,218 -1,089 -648 962
Surplus/deficit pre Macondo, but scrip off-set 2,037 2,188 2,994 1,040 -2,329 -2,945 -2,455 -1,887 -923 687
Surplus/deficit pre Macondo 3,447 3,363 4,557 2,452 -1,103 -1,719 -1,229 -661 303 1,913
CFFO ex-Macondo, post wkg cap 28,967 22,857 21,697 32,763 22,874 25,501 27,242 28,379 29,913 31,842
CFFO ex-incremental Macondo, post wkg cap 22,154 20,475 21,100 32,754 22,344 24,761 26,033 28,379 29,913 31,842

BP: Balance Sheet overview

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
PP&E 119,214 125,331 133,690 130,692 132,767 138,442 144,995 151,446 157,750 163,765
Other 76,029 63,751 75,160 66,351 67,062 68,450 70,060 71,904 73,704 75,607
Non-current assets 195,243 189,082 208,850 197,043 199,829 206,892 215,055 223,350 231,453 239,371
Cash & cash equivalents 14,067 19,635 22,520 29,763 32,576 29,413 29,413 29,413 29,413 29,413
Other 81,617 91,749 74,320 57,499 50,996 50,996 50,996 50,996 50,996 50,996
Current assets 95,684 111,384 96,840 87,262 83,572 80,409 80,409 80,409 80,409 80,409
Total assets 290,927 300,466 305,690 284,305 283,400 287,301 295,464 303,759 311,862 319,780
Interest bearing borrowings 35,169 38,767 40,811 45,977 49,193 49,193 52,411 53,500 54,147 53,186
Other 60,858 64,772 61,660 62,071 60,541 59,097 57,108 56,680 55,729 54,778
Non-current liabilities 96,027 103,539 102,471 108,048 109,734 108,290 109,519 110,179 109,876 107,963
Interest bearing borrowings 9,044 10,033 7,381 6,877 8,538 8,538 8,538 8,538 8,538 8,538
Other 73,374 67,142 65,431 56,738 52,233 52,233 52,233 52,233 52,233 52,233
Current liabilities 82,418 77,175 72,812 63,615 60,771 60,771 60,771 60,771 60,771 60,771
Shareholders' equity 111,465 118,546 129,302 111,441 111,536 116,684 123,422 130,861 139,071 148,706
Minorities 1,017 1,206 1,105 1,201 1,360 1,556 1,752 1,948 2,144 2,340
Total equity 112,482 119,752 130,407 112,642 112,896 118,240 125,174 132,809 141,215 151,046
Total equity & Liabilities 290,927 300,466 305,690 284,305 283,400 287,301 295,464 303,759 311,862 319,780

Net debt 30,146 29,165 25,205 22,762 24,826 27,989 31,207 32,296 32,943 31,982
Net debt/equity 27% 24% 19% 20% 22% 24% 25% 24% 23% 21%
Net debt/(net debt plus equity) 21% 20% 16% 17% 18% 19% 20% 20% 19% 17%

Source: Company data, Credit Suisse estimates

BP (BP.L) 3
 02 July 2015

Companies Mentioned (Price as of 02-Jul-2015)

Anadarko Petroleum Corp. (APC.N, $77.18)
BP (BP.L, 437.4p, UNDERPERFORM, TP 420.0p)
ConocoPhillips (COP.N, $60.03)

Disclosure Appendix
Important Global Disclosures
Thomas Adolff and Ilkin Karimli, each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in
this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation
was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
3-Year Price and Rating History for BP (BP.L)

BP.L Closing Price Target Price

Date (p) (p) Rating
11-Jul-12 432.55 500.00 O
15-Oct-12 429.55 480.00
22-Oct-12 443.45 R
23-Oct-12 433.25 490.00 O
14-Dec-12 426.45 475.00 N
12-Apr-13 448.00 485.00
30-Jul-13 451.45 475.00
06-Sep-13 445.55 NR
14-Nov-13 483.30 495.00 N*
11-Jul-14 503.80 505.00 O U T PERFO RM
22-Oct-14 434.25 470.00 REST RIC T ED
N EU T RA L
05-Dec-14 424.50 440.00 N O T RA T ED
27-Jan-15 440.60 415.00 U U N D ERPERFO RM

05-Feb-15 450.10 420.00

* Asterisk signifies initiation or assumption of coverage.
The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's
total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark*over the next 12 months.
Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months.
Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.
*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which
consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Ne utrals the less attractive, and
Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canad ian as well as European ratings are based on a stock’s total
return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the
most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non -Japan Asia stocks, ratings
are based on a stock’s total return relative to the average total return of the relevant country or regional benchmar k; prior to 2nd October 2012 U.S. and Canadian
ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiv eness of a stock’s total return potential within
an analyst’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12 -month rolling dividend yield. An
Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR less than or equal to 5%. A Neutral may be assigned
where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18
May 2015, ETR ranges for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July
2011.
Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications,
including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other
circumstances.

Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24
months or the analyst expects significant volatility going forward.

Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or
valuation of the sector* relative to the group’s historic fundamentals and/or valuation:
Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months.

BP (BP.L) 4
 02 July 2015

Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.
Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months.
*An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)
Outperform/Buy* 50% (26% banking clients)
Neutral/Hold* 35% (43% banking clients)
Underperform/Sell* 13% (46% banking clients)
Restricted 2%
*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, N eutral, and Underperform most closely
correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to
definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the
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Price Target: (12 months) for BP (BP.L)

Method: We set our TP based on our DCF valuation and comparative multiples. It is a 50/50 weighted valuation approach. Our DCF valuation
derives a value of 418p/share, which is based on a nominal WACC of 7.7%. Our preferred comparative multiple is EV/DACF. We set it at
a 5.9x 2016E EV/DACF, which is consistent with its historical average. Combining the two gives us a rounded value of 420p/share.
Risk: Key risks are commodity prices, refining margins, delays and cost overruns on development projects.

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See the Companies Mentioned section for full company names
The subject company (BP.L) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.
Credit Suisse provided investment banking services to the subject company (BP.L) within the past 12 months.
Credit Suisse has managed or co-managed a public offering of securities for the subject company (BP.L) within the past 12 months.
Credit Suisse has received investment banking related compensation from the subject company (BP.L) within the past 12 months
Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (BP.L) within the next 3
months.

Important Regional Disclosures

Singapore recipients should contact Credit Suisse AG, Singapore Branch for any matters arising from this research report.
The analyst(s) involved in the preparation of this report have not visited the material operations of the subject company (BP.L) within the past 12
months
Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares;
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The following disclosed European company/ies have estimates that comply with IFRS: (BP.L).
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years.
As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report.

BP (BP.L) 5
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Credit Suisse Securities (Europe) Limited ................................................................................................ Thomas Adolff ; Ilkin Karimli ; Justin Teo

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suisse.com/disclosures or call +1 (877) 291-2683.

BP (BP.L) 6
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2015 07 03 BP - Global
BP (BP.L) settlement...now what.doc 7