Monday, March 5, 2012

BP Settlement

BP settled claims with Gulf residents over the 2010 oil spill for $7.8B this weekend.  The WSJ is reporting that this settlement plus others yet to come with the justice department puts the final cost to BP likely somewhere in the $40B range.

Compare this result to the initial loss in market cap to BP in 2010.  The company went from a $178B company to a $90B company at the height of the selloff.  This implies that some were estimating that the cost to BP could be $90B, more than twice what it will likely end up being.

BP Market Cap Chart

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