10 Cheap Energy Stocks to Buy Now

3. Shell plc (NYSE:SHEL)

Forward P/E Ratio as of May 11: 8.57

Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 103,000 people and with operations in more than 70 countries. The company is also the number one global lubricant supplier, as well as the top player in the rapidly expanding LNG sector.

Shell plc (NYSE:SHEL) reported an adjusted EPS of $1.84 in Q1 2025, beating expectations by $0.23. However, the plunging oil prices and declining refining margins reduced the energy giant’s net profit by 28% YoY to $5.58 billion. The company’s revenue of $69.23 billion was also down 4.5% YoY and missed estimates by almost $9.9 billion. Shell generated $9.3 billion in cash flow from operating activities in the first quarter, while its free cash flow came in at a little over $5.3 billion.

Shell plc (NYSE:SHEL) remains committed to its shareholders despite the tough market conditions. The company recently revealed that it would reduce its spending to $20-22 billion annually through 2028, while increasing shareholder distributions to 40-50% of cash flow from operations, up from 30-40% previously. Earlier this month, Shell also announced another $3.5 billion share buyback program, marking its 14th consecutive quarter of a buyback program of at least $3 billion.

There are reports that Shell plc (NYSE:SHEL) is currently working with advisers to evaluate a potential acquisition of rival BP Plc, though it is waiting for further stock and oil price declines before making a final decision. However, it must be noted that when asked about the matter, Shell’s CEO Wael Sawan recently stated that he would rather buy back more of his company’s own shares than launch a takeover bid for rival oil major BP.