Massive, diversified, and cost-competitive upstream operations with strong reserve replacement rates. Unique competitive strengths to supply the U.S. gas market and capture strong returns. Massive, diversified, and profitable refining and marketing operations. Conservative financial profile and policies. Moderate upstream growth. Significant short-term debt. High dividend payouts that absorb most free cash flow. Significant deficits on post-retirement benefits at year-end 2002. The ratings on U.K.-based oil major BP PLC (BP) reflect its extremely strong and geographically diverse business portfolio; solid financial profile; and conservative financial policy. The company's key competitive strengths include: A massive hydrocarbon reserve base--15.7 billion barrels of oil equivalent (boe) at year-end 2002; 50% crude, 54% developed--especially in North America, the U.K., and Trinidad, with particularly promising developments
