What Happened to LNG Stocks and 10 Best LNG Stocks to Buy Now

5. Shell plc (NYSE:SHEL)

Number of Hedge Fund Holders: 49

Shell plc (NYSE:SHEL) is an energy and petrochemical company that explores and extracts crude oil, natural gas, and natural gas liquids. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, and carbon-emission rights.

It is one of the biggest players in the LNG market, having already inked a 19-year LNG gas supply agreement in Turkey. Shell will supply Turkey’s state-owned company with 4 billion cubic meters of LNG annually starting in 2027. The deal is also expected to pave the way for the company to deliver to other European terminals, further strengthening the company’s prospects in the sector

Shell plc (NYSE:SHEL) has enhanced its top LNG collection and achieved significant advancements throughout its Capital Markets, encompassing $1.7 billion in long-term cost cuts since 2022. The company reported strong operational and financial performance for its second quarter thanks to growth in its leading LNG portfolio and high grading downstream.

Its Q2 2024 earnings came in at $6.3 billion, with cash flow from operation totaling $13.5 billion. Free cash flow totaled $10.2 billion for the second quarter and $20 billion for the first six months of the year, leaving the company in a solid position to continue returning value to shareholders through buybacks and dividends.

In the first three months of the year, Shell plc (NYSE:SHEL) signed multiple agreements for liquefied natural gas, highlighting its confidence in the increasing need for this energy source. Additionally, it allocated funds to new ventures in hydrogen and carbon capture technologies.

The company reported saving $700 million in the first half of 2024, bringing its total savings since 2022 to $1.7 billion, aiming to reach a savings goal of $2 billion to $3 billion by 2025.

Shell plc (NYSE:SHEL), boasting a dividend yield of over 3.97% and a robust cash flow situation, stands out as one of the best LNG stocks to buy now. Shell has a history of consistent dividend payments, with distributions made every three months. By March, its payout ratio had dropped to 48%, indicating a strategic shift towards future expansion.

A total of 49 hedge funds out of the 912 tracked by Insider Monkey held stakes in Shell plc (NYSE:SHEL) as of the end of the second quarter.  Fisher Asset Management is the largest shareholder in the company and has a stake worth $1.73 billion as of June 30.