Monday, July 15, 2024

RBC includes worldwide oil and gas stocks in top-performing energy list

RBC Capital Markets Adds Shell and Woodside Energy to Global Energy Best Ideas List

RBC Capital Markets Adds Shell and Woodside Energy to Global Energy Best Ideas List

In a recent move, RBC Capital Markets has added two major global oil and gas companies to its highly coveted Global Energy Best Ideas list. This list, which has consistently outperformed its benchmark by nearly 200% since its inception about a decade ago, now includes Shell and Woodside Energy.

Shell, a multinational oil and gas giant with listings in the U.S., U.K., and Europe, has caught the attention of RBC analysts. The investment bank cited a “constructive set-up for the stock” due to clarity in management communication and strong operational performance in recent quarters. In fact, RBC expects Shell’s stock to rise by 20% over the next 12 months. With CEO Wael Sawan’s commitment to increasing dividends and share buybacks while maintaining oil output, Shell’s stock is up nearly 12% and currently offers a dividend yield of 3.7%.

Woodside Energy, Australia’s largest independent oil and gas producer, has also made it onto RBC’s list. The investment bank highlighted Woodside’s success with the Sangomar oil project off the coast of Senegal, noting impressive initial drilling results. Additionally, RBC expects Woodside’s debt-to-equity ratio to fall beyond the company’s current guidance, signaling potential growth opportunities for investors.

As RBC adjusts its list of preferred energy stocks, it has simultaneously removed Santos, an Australian oil and gas producer. Despite a slight decline of just 0.5% last month, the stocks within RBC’s Global Energy Best Ideas list continue to outperform the iShares Global Energy ETF, which fell by 2.5% during the same period.

With a track record of success and a commitment to identifying promising energy investments, RBC’s Global Energy Best Ideas list remains a valuable resource for investors seeking opportunities in the oil and gas sector.

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