Billionaire’s 15 Favorite Oil and Gas Stocks Right Now

3. Shell plc (NYSE:SHEL)

Number of Billionaire Holders: 14

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. It is also the top global lubricant supplier, as well as a leading player in LNG, a sector that is expected to grow substantially over the coming decade.

Shell plc (NYSE:SHEL) reported a 15.8% drop in revenue for its Q4 2024 and missed market expectations, amid weakness in oil and gas prices and in demand. The company’s EPS of $1.2 was also below analysts’ estimates by $0.29. The oil and gas major posted adjusted earnings of $23.72 billion for the full year 2024, down from $28.25 billion in the previous year, primarily due to the narrower LNG trading margins, lower oil and gas prices, and weaker refining margins. Despite the struggles, Shell managed to generate a free cash flow of $40 billion across the year, higher than 2023, in a lower price environment. This enabled the company to raise its dividend by 4% and launch another share buyback program of $3.5 billion, making it the 13th consecutive quarter of at least $3 billion of share repurchases.

Shell plc (NYSE:SHEL) has been focused on cutting costs and shifting away from renewables and towards its more profitable sectors, such as oil, gas, and biofuels. The company has delivered $3.1 billion in structural cost reductions since 2022, one year ahead of its end-2025 target date, and above the range of $2 to $3 billion that it set in 2023.