>> Investors are filling up on BP stock after the oil giant more than doubled it's profits. Quarter earnings surged to a five year high off $3.8 billion. They numbers boosted by higher oil prices. Analysts say cost cutting also paid off. In a sign of confidence BP says now it plans to finance a big accusation with cash.
It's buying US shale oil assets from miner BHP for $10.5 billion. The deal is the company's largest in 20 years. Reuters Breakingviews Financial Editor George Hay.>> The real issue for Bob Dudley, the Chief Executive of BP, is what to do with all this extra cash. His investors are kind of terrified that he's gonna splurge it onto something that will end up losing money cuz that's what the big all groups have historically done.
>> Some reassurance for investors on that score, the company's sticking to existing capital spending plans despite its newfound riches. Of course, it is still haunted by ghosts of the past. BP paying off more than $65 billion in penalties and clean-up costs over the Gulf of Mexico oil spill in 2010.
But that no longer seems to worry investors, shares in the firm up around 3% on Tuesday's numbers.