I. Investment Highlights Company Profile

2. 
   Balance Sheet:
   

PERIOD ENDING 31-Dec-04 31-Dec-03 31-Dec-02 Assets Current Assets Cash And Cash Equivalents 1,156,000   1,947,000   1,520,000   Short Term Investments 328,000   185,000   215,000   Net Receivables 46,696,000   40,716,000   33,150,000   Inventory 15,698,000   11,617,000   10,181,000   Other Current Assets -   -   -   Total Current Assets 63,878,000   54,465,000   45,066,000   Long Term Investments 18,392,000   18,637,000   4,728,000   Property Plant and Equipment 96,455,000   91,911,000   87,682,000   Goodwill 11,079,000   10,838,000   10,354,000   Intangible Assets 4,204,000   4,473,000   5,128,000   Accumulated Amortization -   -   -   Other Assets 7,069,000   1,139,000   4,633,000   Deferred Long Term Asset Charges (1,533,000) (65,000) (78,000) Total Assets 199,544,000   181,398,000   157,513,000   Liabilities Current Liabilities Accounts Payable 54,341,000   41,128,000   36,215,000   Short/Current Long Term Debt 10,184,000   9,456,000   10,086,000   Other Current Liabilities -   -   -   Total Current Liabilities 64,525,000   50,584,000   46,301,000   Long Term Debt 17,412,000   12,869,000   11,922,000   Other Liabilities 11,734,000   21,783,000   18,139,000   Deferred Long Term Liability Charges 19,438,000   15,273,000   13,514,000   Minority Interest 1,343,000   1,125,000   638,000   Negative Goodwill -   -   -   Total Liabilities 114,452,000   101,634,000   90,514,000   Stockholders' Equity Misc Stocks Options Warrants -   -   -   Redeemable Preferred Stock -   -   -   Preferred Stock 21,000   -   21,000   Common Stock 5,382,000   5,552,000   5,595,000   Retained Earnings 37,763,000   38,700,000   32,344,000   Treasury Stock -   -   -   Capital Surplus 6,366,000   4,480,000   4,243,000   Other Stockholder Equity 35,560,000   31,032,000   24,796,000   Total Stockholder Equity 85,092,000   79,764,000   66,999,000   Net Tangible Assets $69,809,000   $64,453,000   $51,517,000

3. 
   Free Cash Flow
   

PERIOD ENDING 31-Dec-04 31-Dec-03 31-Dec-02 Net Income 17,090,000   13,143,000   8,397,000   Operating Activities, Cash Flows Provided By or Used In Depreciation 12,583,000   10,940,000   10,401,000   Adjustments To Net Income (9,105,000) (6,750,000) (5,694,000) Changes In Accounts Receivables (10,920,000) (5,628,000) (2,672,000) Changes In Liabilities 9,861,000   1,750,000   2,846,000   Changes In Inventories (3,595,000) (841,000) (1,521,000) Changes In Other Operating Activities -   -   -   Total Cash Flow From Operating Activities 24,066,000   16,731,000   15,903,000   Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (13,035,000) (12,440,000) (12,116,000) Investments -   41,000   1,147,000   Other Cashflows from Investing Activities 1,081,000   2,705,000   (234,000) Total Cash Flows From Investing Activities (11,954,000) (9,694,000) (11,203,000) Financing Activities, Cash Flows Provided By or Used In Dividends Paid (6,074,000) (5,654,000) (5,264,000) Sale Purchase of Stock -   (1,826,000) 555,000   Net Borrowings -   760,000   (736,000) Other Cash Flows from Financing Activities -   -   -   Total Cash Flows From Financing Activities (6,074,000) (6,720,000) (5,445,000) Effect Of Exchange Rate Changes -   -   -   Change In Cash and Cash Equivalents $6,038,000   $317,000   ($745,000)

Earnings, Revenue and Growth Forecasts from Analysts

Obtained data from finance.yahoo.com

Earnings Estimates and Trends BP

Earnings Est	Current Qtr Dec-05	Next Qtr Mar-06	Current Year Dec-05	Next Year Dec-06
Avg. Estimate	1.87	1.83	6.35	7.00
No. of Analysts	11	4	17	17
Low Estimate	1.57	1.45	5.70	5.51
High Estimate	2.23	1.97	6.82	9.00
Year Ago EPS	1.33	1.39	4.63	6.35

EPS Trends Current Qtr Dec-05 Next Qtr Mar-06 Current Year Dec-05 Next Year Dec-06 Current Estimate 1.87 1.83 6.35 7.00 7 Days Ago 1.87 1.83 6.35 7.00 30 Days Ago 1.96 2.07 6.68 7.31 60 Days Ago 1.81 1.63 6.42 6.49 90 Days Ago 1.72 1.77 6.15 6.16

• 
  BP’s current estimate fluctuated starting low, then increasing and then reducing their estimate. An explanation for the drop in their explanation from 30 days ago could be that crude oil prices are on their way done and thus there profits are decreasing.
  

Revenue Estimates and Trends

Revenue Est	Current Qtr Dec-05	Next Qtr Mar-06	Current Year Dec-05	Next Year Dec-06
Avg. Estimate	N/A	N/A	322.98B	355.36B
No. of Analysts	0	0	3	3
Low Estimate	N/A	N/A	271.10B	275.72B
High Estimate	N/A	N/A	384.40B	476.93B
Year Ago Sales	N/A	N/A	N/A	322.98B
Sales Growth (year/est)	N/A	N/A	N/A	10.0%

Growth Est	BP	Industry	Sector	S&P 500
Current Qtr.	40.6%	N/A	N/A	N/A
Next Qtr.	31.7%	N/A	N/A	N/A
This Year	37.1%	N/A	N/A	N/A
Next Year	10.2%	N/A	N/A	N/A
Past 5 Years (per annum)	7.1%	N/A	N/A	N/A
Next 5 Years (per annum)	8.7%	N/A	N/A	N/A
Price/Earnings (avg. for comparison categories)	10.2	N/A	N/A	N/A
PEG Ratio (avg. for comparison categories)	1.17	N/A	N/A	N/A

• 
  Notably most of the information was not submitted and therefore further analysis is impossible.
  

VIII. Analysis of Risk

• 
  BP is a stable company and is a proven leader in its industry. BP has settled all of its claims outstanding in March of 2005 and it does not pose any threat to hurting our portfolio. The energy industry has been outperforming the S&P 500 and analysts believe that the integrated oil and gas industry will keep returns higher than the market. The energy sector is pretty correlated with the movements of the market. As long as our economy does not go into recession, then the demand for petroleum products will keep rising. China and India consuming so much oil and with expected forecasts of a 2% increase in consumption in 2006, the demand is going to definitely outweigh the supply that the world has. It is included in the Amex
  
• 
  BP is traded on the NYSE under the ticker, BP, and its price is currently between its 52 week high and low.
  
• 
  BP has a Beta of 0.50 (www.advfn.com) and it’s standard deviation, or relevant risk is 3.30
  

Marketability

• 
  Trading Location: New York Stock Exchange (NYSE)
  
• 
  Average Volume: (3 mo.) 3,589,640
  

Total Risk

• 
  52 week range
  
• 
  The 52 week range for BP is $56.60 - $72.66. The closing price on Monday November 14, 2205 was $65.50 which was a 1.19% increase from Friday November 11, 2005 with a stock price of $64.72.
  
• 
  Finance.yahoo.com graph:
  

• 
  Clear to see that BP’s stock price is not that volatile and has been on a steady increase.
  
• 
  Standard Deviation: 3.3