BP's stock is cheap and leadership has the potential to unlock value, says Melius' James West

Oil and Gas Sector Analysis - Melis holds buy ratings on most big cap oil and gas companies except BP, citing BP's cheap stock price due to past mistakes and potential for improved execution, asset sales, or acquisition under new leadership [1][2] - The firm anticipates increased drilling activity, particularly in international and offshore markets in the second half of next year, due to underinvestment in oil and gas exploration and production over the last five years and low reserve replacement ratios [4] - Big cap service companies like Baker, Halliburton, SLB (Schlumberger), and Weatherford are well-positioned for upcoming offshore and deep water activity [3][5] Renewable Energy Sector Analysis - Next Era (NE), the largest renewable generator in the United States, is rated as "buy" due to its regulated business and attractive independent power producer (IPP) business, which benefits from rising power demand from data centers [6][7] - Independent power producers (IPPs) like Talon (TLN) and Constellation are also rated as "buy," with Constellation potentially benefiting from a premium on nuclear power due to its large nuclear fleet [8][9][10] - The US government is expected to drive a nuclear renaissance, starting with restarting existing nuclear power plants, with potential ease in obtaining FK (likely referring to a regulatory body) approval [11]