Shell Stock Rises On Plans To Boost Shareholder Returns, Retail’s Slightly Less Bullish

The oil and gas major said on its Capital Markets day that it would raise shareholder distributions to 40% to 50% of cash flow from operations from the earlier 30% to 40% range.

Shell also raised the cost reduction target from $2 billion to $3 billion by the end of 2025 to a cumulative $5 billion to $7 billion by the end of 2028, compared to 2022.

The company slashed its annual investment budget to $20 billion to $22 billion through 2028 from an earlier range of $22 billion to $25 billion.

The London-based company expects to grow its liquefied natural gas (LNG) sales by 4% to 5% annually through 2030.

Shell, the world's top LNG producer, had earlier projected that global LNG demand would grow by about 60% by 2040, primarily driven by economic growth in Asia, emissions reductions in heavy industry and transport, and the impact of artificial intelligence.

‘‘We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production,” CEO Wael Sawan said.

In February, the company agreed to buy interests in the Ursa and Europa Fields from ConocoPhillips for $735 million, as part of Sawan’s efforts to boost its oil and gas output.

Shell confirmed earlier media reports that it was exploring strategic and partnership opportunities in the U.S. for its chemical assets and high-grading and selective closures in Europe.

Retail sentiment on Stocktwits moved lower to ‘bullish’ (60/100) territory from ‘extremely bullish’(75/100) a day ago, while retail chatter rose to ‘high.’

One retail trader wondered whether to sell some of the shares as it was nearing an all-time high.

Shell’s U.S. shares have gained 16.6% year-to-date (YTD).

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