Shell plc (NYSE:SHEL) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds.
A gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.
To make sure it can not only survive but thrive through the expected slowdown in global crude oil demand, Shell plc (NYSE:SHEL) announced earlier this year that it would lower its spending to $20-22 billion annually through 2028, while increasing shareholder distributions to 40-50% of cash flow from operations, up from a 30-40% range previously.
Shell plc (NYSE:SHEL) also announced a $3.5 billion share buyback program in May, marking the 14th consecutive quarter in which the company has announced $3 billion or more in buybacks. The oil producer is able to maintain its shareholder payouts even in low-priced environments, given its low distribution breakevens – $40 Brent for dividends, and buybacks continuing at $50.
Shell plc (NYSE:SHEL) is also a top player in the rapidly expanding LNG sector, and the company recently revealed that it expects to add up to 12 million metric tons of additional LNG capacity by the end of the decade. The company has several new projects coming online, including one in Canada, two in Qatar, and others in Nigeria and the UAE.
Artisan Partners stated the following regarding Shell plc (NYSE:SHEL) in its Q1 2025 investor letter:
“Shell is one of the world’s largest integrated oil and gas companies. The business has a durable portfolio of oil and gas resources, which includes a global leadership position in liquefied natural gas (LNG), an attractive and growing market.
The business has been materially transformed over the past two years by a new management team that understands value creation. CEO Wael Sawan and his team have adjusted the capital investment plan to be more focused on the core business and generating returns. Management has also used the company’s strong free cash flow (FCF) to add significant value for shareholders through capital allocation. Over the last three years, Shell has produced about $100 billion in FCF, and the management team has returned all of it through a combination of dividends, buybacks and debt reduction. The current market capitalization is about $200 billion, which means the company has returned over half the market cap to shareholders over the past three years…” (Click here to read the full text)
Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies with operations in more than 70 countries.
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