BP Names Meg O’Neill as Its New CEO. Auchincloss Steps Down Thursday.

BP selected Meg O’Neill, who heads Australian energy company Woodside Energy, as its new CEO. (Samsul Said/Bloomberg)

Key Points

• BP’s CEO Murray Auchincloss is departing, with Meg O’Neill from Woodside Energy appointed as his successor starting in April.
• BP’s stock has underperformed its peers since the pandemic, and experienced executive turnover.
• Activist investor Elliott Management has acquired a significant stake in BP, pressuring the company for transformative changes.

BP’s chief executive is leaving and will be replaced by an executive from an Australian energy firm, the company said late Wednesday.

Meg O’Neill, who heads Woodside Energy , will succeed CEO Murray Auchincloss, who departs on Thursday. An interim leader will serve in the role until O’Neill takes over in April.

BP shares were up less than 1% in after-hours trading.

BP has struggled for direction since the pandemic. Its stock has lagged behind its Big Oil peers, and there has been executive turnover. Auchincloss assumed the top job last year after former CEO Bernard Looney resigned; the company said Looney misled them about personal relationships with employees.

The company is under pressure from outside sources, too. Activist investor Elliott Management has amassed a substantial stake in the stock. BP has already made changes this year, stepping back from some renewable investments and investing heavily to drill in the Gulf of Mexico.

“Progress has been made in recent years, but increased rigor and diligence are required to make the necessary transformative changes to maximise value for our shareholders,” said BP Chairman Albert Manifold.

Write to Avi Salzman at avi.salzman@barrons.com