10 Best LNG and LNG Shipping Stocks to Buy According to Analysts

3. Shell plc (NYSE:SHEL)

Average Upside Potential: 17.78%

Number of Hedge Fund Holders: 54

Shell plc (NYSE:SHEL) is one of the leading energy companies with operations across the globe, including Europe, Asia, Africa, America, and Oceania. The company operates in multiple segments, which include Integrated Gas, Upstream, and Renewables, as well as the LNG sector. The company poses as a major global player with business in LNG exploration, production, trading, and transportation.

Shell plc (NYSE:SHEL) reported adjusted earnings of $3.7 billion for the Q4 ended on December 31, 2024, in light of lower prices and margins. Moreover, exploration well write-offs also went up, while the company reported non-cash impact of expiring hedging contracts on LNG trading. Nevertheless, the company showcased $22.6 billion in shareholder distributions under high cash flow, representing 41% of the total cash flow from its operations. However, the company reported an increase of $3.6 billion in its net debt to $38.8 billion because of the realization of the LNG Canada pipeline lease liability.

On the other hand, LNG sales volumes reached 15.5 MT, with liquefaction volumes at 7.1 MT for 2024, indicating Shell plc (NYSE:SHEL)’s healthy performance in LNG operations. The company is also expanding its LNG infrastructure with projects like LNG Canada and Prelude FLNG, increasing its global presence.

Moreover, Shell has looked to expand its portfolio through an agreement to acquire ConocoPhillips’ stakes in the Ursa and Europa Fields and the Ursa Oil Pipeline for a sum of $735 million, looking to be closed by Q2 2025. This agreement was finalized on January 1, 2025. Thus, the company looks to capitalize on the rising global demand for LNG, with its expansion intentions and efficient capital allocation.