BP sees higher Q3 upstream production, flags weak oil trading performance

[BP North America Inc Corporate office building in Houston.]
JHVEPhoto

Oil and gas major BP (NYSE:BP [https://seekingalpha.com/symbol/BP]) on Tuesday said it expects third-quarter upstream production to rise from the previous quarter, driven by increased output in both oil production and operations, mainly due to higher gas production at bpx energy.

The company had previously guided for slightly lower upstream output than in the second quarter, when it produced around 2.3 million barrels of oil equivalent per day.

In the gas and low-carbon energy segment, realizations, compared to the prior quarter, are expected to have an impact of around $(0.1) billion, including changes in non-Henry Hub natural gas market prices.

The US gas Henry Hub first-of-the-month index averaged $3.07/mmBtu in the third quarter of 2025 compared to $3.44/mmBtu in the second quarter, the company said.

The gas marketing and trading result, therefore, is expected to be average, while the oil trading result is expected to be weak.

Looking at the oil production and operations segment, realizations, compared to the prior quarter, are expected to be broadly flat, including the impact of the price lags on BP’s production in the Gulf of America and the UAE.

Exploration write-offs are expected to be approximately $0.1 billion higher than in the previous quarter, the company said in a statement.

The third-quarter results are expected to include post-tax adjusting items relating to asset impairments in the range of $0.2 to $0.5 billion, attributable across the segments.

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