Oil Companies Testify on Alaska’s New Tax Structure (XOM, BP, COP)

Major oil companies including Exxon Mobil Corporation (XOM), BP plc (BP) and ConocoPhillips (COP) are hoping to change Alaska’s current oil tax structure.

By changing the current oil tax laws in the state, Alaska would be able to more a more competitive destination for oil production, which would likely increase the amount of investment into the state.

Oil companies including Exxon, BP, and ConocoPhillips testified on Tuesday to change the current tax structure in the state. The current tax structure was created in 2007 and charges companies a 25% base tax rate and a surcharge that goes into affect when a company’s production tax value reaches $30 a barrel.

The proposed plan, known as SB21 would eliminate the surcharge and focus on giving companies tax credits for production in the state. This plan would benefit both the state and the companies since oil production is such a large portion of Alaska’s revenue.

Exxon shares were down 54 cents, or -0.60% during premarket trading Wednesday. The stock has increased 5% in the past year.
BP shares were down 46 cents, or -1.09% during premarket trading Wednesday. The stock has declined -7% in the past year.
ConocoPhillips shares were mostly flat during premarket trading Wednesday. The stock has declined -21% in the past year.

The Bottom Line
Shares of Exxon Mobil Corporation (XOM) have a 2.53% yield, based on Tuesday’s closing price of $90.13.
Shares of BP plc (BP) have a 5.10% yield, based on Tuesday’s closing price of $42.32.
Shares of ConocoPhillips (COP) have a 4.37% yield, based on Tuesday’s closing price of $60.44.

Exxon Mobil Corporation (XOM) andBP plc (BP) are not recommended at this time, holding Dividend.com DARS™ Ratings of 3.4 out of 5 stars.
ConocoPhillips (COP) is a “Recommended” dividend stock at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.C
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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