Shell (RDSA), Rockhopper (RKH) & EnQuest (ENQ): 3 FTSE oil stocks to buy

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Shell (RDSA), Rockhopper (RKH) & EnQuest (ENQ): 3 FTSE oil stocks to buy

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 Shell (RDSA), Rockhopper (RKH) & EnQuest (ENQ): 3 FTSE oil stocks to buy
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Highlights

  • The crude oil prices in the international market are under pressure and expected to end the week flat following the recent rise in Omicron variant cases.
  • Many countries like the United States, South Africa, and the United Kingdom have been reporting a rise in new variant cases, and several countries have warned of imposing new restrictions.

The crude oil prices in the international market are trading under pressure and is expected to end the week in a flat range following the recent rise in cases of Omicron variant in different countries. Investors fear the recent increase in new variant cases might derail the economic recovery as new restrictions could be imposed by the government, leading to lower demand for fuel.

Many countries like the United States, South Africa, and the United Kingdom have been reporting a rise in new variant cases. Several countries have warned of imposing new restrictions to curb the spread of the virus. Moreover, the Organization of the Petroleum Exporting Countries (OPEC) has said that they might meet earlier if required, ahead of its scheduled 4 January 2022 meeting to review the demand outlook and its plans to add 400,000 barrels of oil per day from January 2022.

Let us look at FTSE listed stocks that are in focus today:

Royal Dutch Shell Plc (LON: RDSA)

The multinational oil and gas company operates in every major oil and gas business division from exploration to refining and marketing of fuel under the Shell brand name. On 2 December 2021, the company sold its Permian business to the US-based exploration firm ConocoPhillips for USD 9.5 billion in cash. The cash proceeds received from the transaction will be used for additional distribution to shareholders and to strengthen the balance sheet. The company plans to distribute USD 7 billion to shareholders with the first tranche of distribution in the form of share buyback of up to USD 1.5 billion, which started on 2 December 2021.

In the latest development, the company has stated that the previously reported sale of its controlling interest in a Texas refinery has been delayed to the next year. The fifty per cent interest in the 302,800 bpd Deer Park is slated to be sold to partner Pemex for a sum of around $596 million.

Royal Dutch Shell Plc’s last close price was at GBX 1,627 on 16 December 2021, with a market cap of £66,727 million.

Rockhopper Exploration Plc (LON: RKH)

FTSE AIM-listed company is engaged in the production and exploration of oil and gas. Its primary asset is located in North Falkland Basin and the Greater Mediterranean region.

The company recently announced a change in the management team. Stewart MacDonald will step down from his role as Executive Director and Chief Financial Officer effective from 31 January 2022. William Perry, who has been with the company since 2011, will take charge of the company’s finance department after Mr MacDonald’s departure.

Rockhopper Exploration Plc’s last close price was at GBX 6.51 on 16 December 2021, with a market cap of £29.85 million.

EnQuest Plc (LON: ENQ)

The company operates in the oil and gas sector and is engaged in the exploration of hydrocarbon in the United Kingdom, North Sea, and Malaysia.

The company successfully completed the acquisition of the Golden Eagle area for cash consideration of USD 325 million. In the first ten months of 2021, the asset produced 10,556 Boepd. The company reported revenue of USD 950 million during the period primarily due to a strong pricing environment.

EnQuest Plc’s last close was at GBX 17.98 on 16 December 2021, with a market cap of £339.09 million.

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