BP p.l.c ( BP ). shares are trading higher after the company reported a trading update for the first quarter of 2024.

The British oil major expects upstream production to be higher than the prior quarter, with production projected to be higher in oil production & operations and slightly higher in gas & low carbon energy.

The gas & low carbon energy segment is expected to have an adverse impact in the $0.2 billion-$0.4 billion range from lower realized prices and around $0.2 billion from the devaluation of the Egyptian Pound.

In the oil production & operations segment, realizations are expected to have an adverse impact in the range of $0.3 billion-$0.6 billion, including price lags on production in the Gulf of Mexico and the UAE and also declines in non-Henry Hub natural gas marker prices.

The customers and products segment is expected to witness a benefit of $0.1 billion-$0.2 billion from improving realized refining margins.

Also Read: BP’s Biggest Midwest US Refinery Reportedly Set for March Restart After Power Outage

Outlook: For FY24, BP continues to expect both reported and underlying upstream production to be slightly higher Y/Y. The company projects capital expenditure to be around $16 billion, weighted towards the first half of FY24.

Apart from this, BP is reportedly close to an agreement to divest some of its Trinidad and Tobago oil and gas assets to Anglo-French oil company Perenco, reported Reuters. 

“We are close to agreeing on a final price and signing on the dotted line. This will ensure that Perenco can continue to maintain or even increase production from those fields,” the report quoted a person familiar with the talks.

“We will have a deal and announcement well before the end of the summer.”

Investors can gain exposure to the stock via Direxion Hydrogen ETF ( HJEN ) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF .

Also Read: BP Reclaims £1.8M From Dismissed CEO’s Pay Package

Price Action: BP shares are up 1.34% at $39.43 premarket on the last check Tuesday.