Shell plc: A Good Investment Option for Crude Oil Stocks?

Shell plc (SHEL) is a good option for investors looking to invest in crude oil stocks due to its low distribution breakevens, $40 Brent for dividends, and $50 for buybacks. The company also has a global leadership position in liquefied natural gas and is adding up to 12 million metric tons of additional LNG capacity by the end of the decade. Shell is included among the best crude oil stocks to buy according to hedge funds.

Shell plc (SHEL) continues to demonstrate resilience and strategic positioning in the energy sector, making it an attractive option for investors seeking exposure to crude oil stocks. According to recent earnings reports and market analyses, Shell's robust financial performance and strategic initiatives place it favorably among leading crude oil stocks.

In the second quarter of 2025, Shell reported a significant decline in earnings due to lower crude prices and a stronger euro, similar to the trends observed by Eni [1]. Despite this, Shell's strategic focus on liquefied natural gas (LNG) remains a key growth driver. Shell's LNG Canada facility, with a total capacity of 14 million tonnes per annum (mtpa), has begun operations, exporting LNG to Asian markets. This initiative aligns with Shell's broader ambition to contribute to global decarbonization efforts by providing a lower-carbon alternative to coal [3].

Shell's midstream business, MPLX, has been a standout performer, with consistent distribution increases since 2012. Marathon Petroleum Corporation (MPC), which includes MPLX, is recognized as one of the best crude oil stocks to buy according to hedge funds [2]. Shell's strong balance sheet, with approximately $3.8 billion in consolidated cash and additional undrawn credit facilities of $5 billion, positions the company well to navigate market fluctuations and support its growth initiatives.

Shell's global leadership position in LNG, combined with its plans to add up to 12 million metric tons of additional LNG capacity by the end of the decade, underscores its commitment to sustainable energy solutions. This strategic expansion, coupled with its low distribution breakevens and favorable dividend payouts, makes Shell an appealing investment for those seeking exposure to both crude oil and LNG markets.

References:
[1] Investing.com. (2025). Eni (BIT:ENI) on Friday reported a 25% drop in second-quarter adjusted net profit to €1.13 billion, down from €1.52 billion a year earlier, as lower crude prices and a stronger euro weighed on earnings. Retrieved from https://www.investing.com/news/earnings/eni-q2-profit-falls-25-as-oil-prices-and-euro-strength-pressure-earnings-4152491
[2] Yahoo Finance. (2025). Marathon Petroleum Corporation (NYSE:MPC) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds. Retrieved from https://finance.yahoo.com/news/marathon-petroleum-mpc-one-best-183433700.html
[3] Energy Now. (2025). First cargo leaves LNG Canada. Retrieved from https://energynow.ca/2025/07/first-cargo-leaves-lng-canada/