Your Favourite Energy Companies - From Supermajors to Speculative Micro-Caps
Readers' Wives, but for oil and gas stocks
We continue to bang the energy drum today.
In last week’s piece, Powering the Machine, I asked for your favourite oil and gas names. What a great response. Thank you. Dozens of suggestions came in, in the comments and by email.
Rather than let them disappear, I’ve pulled them together here in one handy guide
What is a reader-driven list of energy stocks, from global majors to tiny explorers. I have added a short note on each .
Some are income plays. Some are cyclical punts. All are exposed, in one way or another, to the fate hydrocarbons.The world needs hydrocarbons. AI means it is only going to need more.
Remember: we outlined the easiest way to play this theme last week. But today we have the individual companies.
Energy stocks have had one heck of a run since this well-timed piece at the beginning of the year. So exercise some caution.
We have majors, infrastructure, North Sea producers, offshore drillers, US shale, equipment makers and speculative micro-cap punts.
We’ll start with the big guns.
Global Majors
Shell plc (SHEL.L / SHEL.NYSE).
Market cap about £170 billion GBP. Yields ~3.5%.
Highly profitable and with a long history, this London-listed oil and gas major has operations across the globe, from production to refining and trading. It generates strong cash flow and returns a large portion to shareholders through dividends and buybacks. Less torque than smaller companies, but far lower operational and financing risk. You are buying scale, resilience and steady income rather than excitement. Maybe one to hold and forget. Never sell Shell, as they say.
Petróleo Brasileiro S.A. (PBR.NYSE).
Market cap $106.6 billion USD. Yields ~ 10%.
Petrobras is Brazil’s state-backed oil giant, producing mainly offshore from deepwater fields. It refines fuel and exports crude worldwide. Very profitable when oil prices are strong and known for paying chunky dividends, though politics is always part of the story. On a good run. Had been a dog for years.
Equinor ASA (EQNR.NYSE).
Market cap $73 billion USD. Yield ~5%.
Norway’s state-backed energy company with major offshore production. Strong balance sheet and steady payouts. Also investing heavily in offshore wind.
