Shares in Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) climbed on Monday as oil prices were driven higher by renewed uncertainty over whether the US and Iran can agree to a ceasefire deal.
Shell is downgraded to hold as its current valuation reflects a balanced risk-reward profile amid industry uncertainty. SHEL's Q1 results were solid, maintaining a solid balance sheet, boosting the dividend while cutting the buybacks, and advancing on the portfolio rebalancing efforts, including the ARC Resources acquisition. Geopolitical risks, supply disruptions, and potential windfall taxes temper upside, while higher-for-longer oil prices and AI-driven energy demand offer long-term opportunities.
Oil giants Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) were a major brake on the progress of the FTSE 100 in early trading after the long weekend, as investors reacted to a sharp fall in oil prices the previous day.
Shell PLC's (LSE:SHEL, NYSE:SHEL) proposed ARC transaction could sharpen two of the oil major's most important strategic edges, that's according to analysts at JP Morgan, who point to longer-life upstream liquids and global LNG leadership. London-based analysts for the US bank, which has an 'overweight' rating on Shell, said the acquisition offers low-single-digit percentage free cash flow per share accretion to 2030 on a long-term Brent assumption of US$65 per barrel, with further upside from commodity prices and asset duration.
SHEL sells interests in three Uruguay offshore blocks to QatarEnergy, strengthening partnerships while advancing frontier basin exploration.
In the world of integrated energy giants, few names command as much influence as Shell plc SHEL and Chevron Corporation CVX. Both companies have built vast global operations spanning upstream production, refining, marketing and fast-growing LNG businesses, making them pillars of the energy industry.
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SHEL's LNG growth, rising volumes and ARC deal may drive stronger cash flows and returns ahead.
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SHEL's Q1 beat, buybacks and dividend hike highlight strong cash visibility and trading strength amid volatility.
Shell PLC (LSE:SHEL, NYSE:SHEL) could see as much as 37% upside, according to Jefferies, despite investor unease over the oil major's shareholder returns mix. In a note, the broker repeated a 'Buy' rating and a £44 price target after the group's first-quarter call.