Furthermore, Shell generates electricity through wind and solar resources, produces and sells hydrogen and provides electric vehicle charging services, as well as electricity storage.
Shell delivered a record $40 billion profit in 2022. It also posted a record fourth-quarter profit of $9.8 billion, after a strong recovery in earnings from LNG trading, beating analyst forecasts for an $8.0 billion profit. The company also increased its dividend by a strong 15%.
Shareholders receive a 4.15% dividend with the increase. Shell stock has a $74 target price at BofA Securities, and the consensus target is $71.38. Monday’s close at $60.51 was up over 5% on the day.
TotalEnergies
This French integrated giant is another great way to play an energy rally from the European side. TotalEnergies S.E. (NYSE: TTE) operates as an integrated oil and gas company worldwide. Its Exploration & Production segment engages in oil and natural gas exploration and production activities in approximately 50 countries.
The Integrated Gas, Renewables & Power segment engages in the LNG production, shipping, trading and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric and biogas sources; energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services.
The Refining & Chemicals segment refines petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene and hydrocarbon resins, as well as biomass conversion and elastomer processing. This segment also engages in trading and shipping crude oil and petroleum products.
The Marketing & Services segment produces and sells lubricants; supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG and bitumen; and provides fuel payment solutions. It operates approximately 15,500 service stations.
Though finding comprehensive final earnings for the quarter proved to be difficult, the company still pays the highest dividend of all of the mega-cap integrated leaders.
Investors receive a 5.04% dividend. The BofA Securities price target is $84. The consensus target was last seen at $73.72. On Monday, TotalEnergies stock closed almost 7% higher to $63.14.
Given the shaky geopolitical state of the world, we decided to focus on the mega-cap domestic and foreign sector leaders, as now is a good time to stay with, add to positions or to start accumulating them for 2023. While all were up big Monday, they are offering good entry levels. It may make sense to buy partial postions now and see how earnings for the first quarter come in.
Originally published at 24/7 Wall St.
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