Activist investor Elliott Investment Management has acquired a significant stake in BP Plc, as the British oil giant struggles with years of underperformance and weak investor confidence, according to sources familiar with the matter.
Elliott is reportedly pressuring BP to consider transformative measures to boost shareholder value, believing the company is undervalued and its performance disappointing. The exact size of Elliott’s stake has not been disclosed, and both BP and Elliott declined to comment.
The move comes as BP has lagged behind its Big Oil rivals, with shares falling 8% over the past five years, while competitors like Shell and Exxon Mobil have seen at least 30% gains. The company, under former CEO Bernard Looney, made a major push toward net-zero goals, a strategy that has since struggled to deliver results.
New CEO Murray Auchincloss, who took over after Looney’s dismissal, is expected to outline a strategic shift back toward oil and gas in a key update on Feb. 26. BP has already warned that share buybacks could slow this year, adding to investor frustration.
BP’s market value of £69 billion ($86 billion) is now less than half of Shell’s, fueling speculation that the company could be a potential takeover target for rivals like Shell, ConocoPhillips, or TotalEnergies.
Elliott has a history of pushing for major changes in the energy sector, having previously led activist campaigns at NRG Energy and Suncor Energy. The firm recently forced a breakup at Honeywell International and has also been involved in Anglo American Plc.
BP will report its fourth-quarter earnings on Tuesday, with analysts already expecting weak results amid growing pressure for a clearer turnaround strategy.