BP, Shell (SHEL), Diversified Energy (DEC): 3 FTSE oil stocks to buy

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 BP, Shell (SHEL), Diversified Energy (DEC): 3 FTSE oil stocks to buy
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  • Oil prices extended their fall on Tuesday ahead of the resumption of US- Iran indirect talks.
  • If talks are successful and Iran’s sanctions are lifted, it would return 1 million bpd of Iranian oil exports to the markets.

Crude oil prices extended their fall on Tuesday, slipping from near 7-year highs reached on Friday, ahead of the restart of US and Iran indirect talks later today.

If these talks are successful in lifting sanctions on Iran, there will be a possibility of revival of an international nuclear deal that could potentially return around 1 million barrels per day of oil exports from Iran (which accounts for around 1 per cent of global supply) to the markets. 

Brent April 2022 oil futures were at US$ 90.73, down by 1.96 per cent on 8 February at 12:26 hrs BST. While WTI March 2022 crude oil futures were down by 1.85 per cent at US$ 89.60 per barrel.

Oil investors are also looking at key US crude oil supply data set to be released later today by the American Petroleum Institute.

Here are 3 FTSE index listed oil and gas stocks, which one could explore in order to better capitalise on the current market scenario:

  1. BP PLC (LON: BP)

BP, the oil and gas supermajor based in the UK released its Q4 and FY 2021 results today, wherein its profit was the highest yearly profit it had reported in around 8 years.

The oil giant’s Q4 2021 underlying replacement cost (RC) profit rose to US$ 4,065 million, up from US$ 115 million in Q4 2020. This was due to higher levels of oi land gas realisations, more upstream productions and other factors.

While its FY 2021 underlying RC profit rose to US$ 12,815 million, reversing from a loss of US$ 5,690 million in FY 2020.

BP 6 months share price and volume

Image source: Refinitiv

The company’s shares shot up following the news, rising by 1.71 per cent to GBX 415.65 on 8 February 2022 at 09: 56 AM BST. In comparison, its benchmark index, the FTSE 100, was at 7,610.87, up by 0.49 per cent.

BP’s market cap was at £80,326.56 million, and its one-year return stood at 65.03 per cent as of date.

  1. Shell PLC (LON: SHEL)

Shell PLC, formerly Royal Dutch Shell, is an oil and gas major. It is a constituent of the FTSE 100 index.

The company recently simplified its A and B shares into a simplified single line of ordinary shares on the London Stock Exchange (LSE) as part of its share structure simplification strategy.

Shell’s Q4 2021 Income attributable to its shareholders rose by a whopping 2,662 per cent to US$ 11,461 million, compared to a loss of US$ 4,014 million in Q4 2020. Meanwhile, its FY 2021 income rose by 193 per cent to US$ 20,101 million, from a loss of US$ 21,680 million in FY 2020.

Its Q4 2021 adjusted earnings rose by 55 per cent to US$ 6,391 million, up from US$ 393 million in Q4 2020. Its FY 2021 adjusted earnings jumped by 298 per cent to US$ 19,289 million, up from US$ 4,846 million in FY 2020.

SHEL 6 months share price and volume

Image source: Refinitiv

The company’s shares were down by 0.10 per cent, trading at GBX 2,059.50 on 8 February 2022 at 10: 06 AM BST.

Its market cap was at £157,705.28 million as of 8 February. The company started trading on the LSE under its Shell PLC moniker on 31 January 2022.

  1. Diversified Energy Company PLC (LON: DEC)

Diversified Energy Company is an oil and gas company. The company recently closed its sustainability linked securities which were backed by certain Appalachian assets. This asset-backed security (ABS) note had an amount of about US$ 365 million and a fixed coupon rate of 4.875 per cent.

The company’s shares were up by 1.64 per cent, trading at GBX 111.80 on 8 February 2022 at 11: 20 AM BST. In comparison, its benchmark index, the FTSE 250, was at 21,787.84, down by 0.04 per cent.

Its market cap was at £934.62 million as of 8 February.


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