Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

Shell appears to be a mature energy business with strong liquidity and moderate leverage, but without a clear catalyst for aggressive re-rating. A P/E of 8.48 and a P/S of 0.91 are notably below the industry median, supporting the case for an inexpensive valuation, while a P/B of 1.27 also looks restrained. At the same time, a P/FCF of 10.58 is already above the industry median, so free cash flow does not provide the same margin of safety as earnings and revenue. Profitability has generally improved: ROE of 14.64, ROA of 6.88, and ROI of 10.71 are at acceptable or good levels, with ROI even above the industry median. Margin trends are positive compared with last year, but the margins themselves remain below industry benchmarks, especially gross margin, operating margin, and net profit margin. This means the business generates large absolute amounts of profit, but some efficiency still lags the sector’s best players. Revenue, EBITDA, operating profit, and net income have increased compared with earlier periods, confirming the resilience of cash flow and the scale of the business. The balance sheet looks solid: a current ratio of 1.44, quick ratio of 1.12, and debt/equity of 0.35 indicate comfortable liquidity and low financial risk. Long-term debt remains significant in absolute terms, but relative to capital and assets it does not look excessive. The dividend yield in the current data does not support a separate premium case, so the dividend factor here is more neutral than a valuation driver. Overall, the fundamentals support a moderately positive view, but weak margins and a not-so-cheap P/FCF limit upside re-rating potential. For an investor, this is a story about a high-quality, large, financially resilient oil and gas asset with a reasonable valuation, but without signs of strong undervaluation that would justify a meaningful increase in the target price.

Shell PLC

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Shell looks financially sound and inexpensive on earnings, but weak margins and not the most attractive P/FCF limit its revaluation potential.

BP p.l.c. BP has outlined its expectations for the third quarter of 2026, highlighting substantial balance-sheet improvement and a stronger refining environment. The update points to improving financial flexibility ahead of the company's third-quarter 2026 earnings release.
Debt Reduction Likely to Strengthen BP’s Financial Position
BP expects third-quarter net debt of $13.5-$14.5 billion, down sharply from $22.3 billion at the end of the second quarter. Management forecasts a $9-$10 billion decline in the combined total of net debt, hybrid securities, leases and Gulf of America settlement liabilities. This reduction enhances the company's financial flexibility and supports its ability to manage obligations while funding priority investments.
Refining Margins Provide a Major Tailwind for BP
BP expects stronger realized refining margins to add $1.9-$2.1 billion to its products segment performance compared to the second quarter. The company's refining indicator margin averaged $46.7 per barrel, up from $29.6 in the preceding period. These conditions strengthen the downstream business’ earnings outlook, despite expected throughput declining to 1.375-1.405 million barrels per day following the Gelsenkirchen divestment.
Gas Business Offers Additional Earnings Support for BP
The gas and low-carbon energy segment is expected to benefit from a $100-$300 million improvement in realizations compared with the previous quarter. Management anticipates significantly stronger gas marketing and trading results. These factors provide another source of earnings support as BP navigates changing commodity markets.
BP’s Upstream Volumes Remain Resilient
BP projects reported third-quarter upstream production of 2.190-2.240 million barrels of oil equivalent per day (MMBoe/d) compared with 2.201 MMBoe/d in the second quarter of 2026. The recovery from seasonal maintenance is expected to support production, partially offsetting the impact of reduced equity interests in Latin America and ongoing Middle East disruptions. Higher gas production helps offset softer oil production and lower operating volumes.
Lower Oil Prices Present an Offset for BP
Brent crude averaged $96.99 per barrel during the third quarter, down from $103.85 in the second quarter of 2026. BP expects this environment and changes in non-Henry Hub natural gas markers to weigh on oil production and operations realizations by $200-$400 million. The customer's business faces weaker fuel margins and higher base oil costs, underscoring the need for diversified earnings streams.
BP’s Investment Outlook Remains Balanced
Despite the positive outlook, BP's anticipated post-tax impairment charges of $3-$4.5 billion, primarily associated with its transition businesses, warrant investor attention. Although these charges are excluded from underlying replacement cost profit, they highlight challenges related to asset valuation.
However, stronger refining margins, improved gas trading performance and significant debt reduction are expected to strengthen BP's financial position and enhance its investment appeal. The upcoming third-quarter 2026 results and December strategy update will offer further insights into the company's growth prospects and capital allocation priorities.
BP’s Zacks Rank & Other Key Picks
BP currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the energy sector include Shell plc SHEL, Chevron Corporation CVX and Eni S.p.A. E. SHEL, CVX and E currently sport a Zacks Rank #1 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Like BP, Shell, Chevron and Eni operate across the upstream and downstream segments of the energy industry, making their business model sensitive to fluctuations in commodity prices.
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BP Unveils Q3'26 Outlook With Lower Debt & Stronger Refining Margins

Shell plc SHEL and Trinidad and Tobago’s National Gas Company (“NGC”) have finalized commercial agreements covering natural gas supplies from the Aphrodite offshore field, clearing a major hurdle that had delayed the project. The agreement follows months of negotiations over gas pricing and is expected to pave the way for development of the field.
NGC chairman Gerald Ramdeen said the finalized terms significantly improve the economics of the project for the state-owned gas company. According to NGC, the new terms provide 400% more value to the country compared with the terms previously negotiated.
Aphrodite’s First Gas Expected in 2027
The Aphrodite development is expected to deliver its first gas in the second quarter of 2027. NGC’s pipeline and gas infrastructure will play an important role in transporting the field’s production to the domestic market.
The project is expected to provide an additional source of natural gas for Trinidad and Tobago as the country deals with declining production and persistent supply challenges. NGC said the additional gas will support downstream operations and strengthen its ability to meet commitments to power producers, industrial customers and Atlantic LNG.
Gas Supply Challenges Add Importance to Project
Aphrodite comes at a time when Trinidad and Tobago’s energy sector has been dealing with years of declining natural gas production. Lower gas availability has weighed on LNG exports and contributed to the closure of several petrochemical facilities.
NGC purchases gas from producers and supplies it to downstream customers, including the petrochemical sector and Atlantic LNG, where Shell owns a 45% stake. The additional supply from Aphrodite could therefore help improve feed gas availability across the domestic energy system.
Shell Continues to Pursue Regional Gas Opportunities
The Aphrodite agreement is also part of a broader effort to strengthen Trinidad and Tobago’s gas supply. Shell has been pursuing cross-border gas opportunities involving Venezuela, with the objective of transporting Venezuelan natural gas to Trinidad for processing and export.
Shell has also been exploring the Loran offshore gas field, a transboundary resource shared with Trinidad and Tobago. The proposed development would involve tying subsea wells from Loran back to the Manatee platform in Trinidad, potentially supporting LNG production and exports through Atlantic LNG.
Aphrodite to Support Trinidad's Energy Sector
The finalized commercial agreements strengthen the framework for bringing Aphrodite’s gas reserves to market. NGC said the project should contribute to future domestic gas supplies, support downstream activity and increase its revenue-generating capacity.
For Shell, the agreement enables progress on an offshore development that can add to the company’s regional gas portfolio while supporting efforts to improve natural gas availability in Trinidad and Tobago. With first gas targeted for the second quarter of 2027, Aphrodite is set to become an important addition to the country’s efforts to strengthen its energy sector.
SHEL’s Zacks Rank & Key Picks
London-based Shell is one of the primary oil supermajors — a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some better-ranked stocks like CrossAmerica Partners LP CAPL, Marathon Petroleum Corporation MPC and Magnolia Oil & Gas Corporation MGY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrossAmerica Partners engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. The Zacks Consensus Estimate for CAPL’s 2026 earnings indicates 30.4% year-over-year growth.
Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for MPC’s 2026 earnings indicates 452.8% year-over-year growth.
Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The Zacks Consensus Estimate for MGY’s 2026 earnings indicates 64.3% year-over-year growth.
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Shell & NGC Reach Gas Deal to Advance Trinidad's Aphrodite Project

Key Points
Exxon plans to double its global LNG business by 2030.
LNG is one of its three main upstream growth drivers.
Achieving this ambitious target would enhance its ability to achieve its 2030 profit growth plan.
ExxonMobil (NYSE:XOM) recently raised its annual sales target for liquefied natural gas (LNG) to 50 million tons by 2030. That's double the company's current production volume. This bold goal is up from its previous target of boosting its global LNG output to 40 million tons per year by 2030.
Here's a look at ExxonMobil's ambitious goal of growing its global LNG volumes.
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Exxon is a major player in LNG
Global LNG sales totaled 422 million tons in 2025, according to Shell (NYSE:SHEL). That implies Exxon has about a 6% share of the global LNG market. It has a globally diversified portfolio. Its investments include Golden Pass LNG (U.S.), PNG LNG and Papua LNG (Papua New Guinea), Coral South Floating LNG (Mozambique), Gorgan LNG (Australia), and North Field East (Qatar).
Exxon's LNG business has experienced some headwinds and tailwinds this year. The closure of the Strait of Hormuz has impacted LNG flows from Qatar. Additionally, two of Exxon's minority-owned LNG trains in Qatar were damaged by Iranian attacks earlier this year and will be out of commission for a few years for repairs. However, the company and QatarEnergy also began production at their Golden Pass facility in the U.S. earlier this year, which will help offset some of that impact.
Growing its LNG business
Shell expects global LNG demand to grow 65% by 2050 to nearly 700 million tons per year. While the global LNG giant (Shell controls about 15% of global demand) expects LNG sales to be flat to down this year due to the closure of the Strait of Hormuz, it anticipates they'll resume their upward trajectory in 2027. Meanwhile, Exxon is even more bullish. It sees global LNG demand rising to 500 million tons by 2030 and doubling by 2050. This outlook suggests it would control 10% of the LNG market by 2030.
Exxon has been investing heavily to expand its LNG business. It's one of the company's three core upstream growth drivers (along with the Permian Basin and Guyana) that remain vital to its 2030 plan. Its current LNG projects include Golden Pass (which should reach full capacity next year) and the North Field Expansion project in Qatar. It also plans to launch new project start-ups in Papua New Guinea and Mozambique, though they likely won't start producing until after 2030. Given that Exxon is boosting its LNG growth target without announcing any new projects, it suggests that the company plans to accelerate one of those projects, expand other facilities, or acquire additional LNG capacity to reach its more ambitious 2030 target.
A bold goal
Exxon wants to double its LNG business by 2030, which would give it a 10% share of that growing global energy market. The company hasn't yet laid out exactly how it plans to reach that more ambitious goal, which is something investors should monitor. However, achieving this bold goal would put the company in an even stronger position to meet its targets of delivering $25 billion in earnings growth and $35 billion in cash flow growth by 2030, positioning it to create significant shareholder value in the coming years.
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Exxon Just Set a Bold 2030 Target for LNG Sales. Here's What 50 Million Tons Actually Means.

The Shell plc SHEL-led LNG Canada project is reportedly heading toward another major expansion, with partners potentially reaching a final investment decision on Phase 2 as early as October. The proposed project would add 14 million metric tons per annum (mtpa) of LNG export capacity, effectively doubling the facility’s total capacity to 28 mtpa.
The potential expansion comes as LNG buyers, particularly in Asia, place greater emphasis on supply security amid geopolitical tensions, Red Sea shipping disruptions and uncertainty surrounding future flows through the Strait of Hormuz. Tight global markets and growing demand from countries seeking to replace coal with cleaner-burning natural gas are also supporting interest in new LNG projects and diversified supply sources.
Phase 2 Could Double LNG Canada Capacity
LNG Canada is a joint venture led by Shell and backed by Petronas, PetroChina, Mitsubishi Corp and Korea Gas Corp. The project, located in Kitimat, British Columbia, is Canada’s first large-scale LNG export terminal and one of the country’s largest private-sector investments.
The first phase, which cost about C$40 billion, consists of two processing trains designed to produce 14 mtpa of LNG. The facility shipped its first cargo in 2025 and has since reached full capacity. Phase 2 would add another 14 mtpa, providing a significant increase in export volumes if approved.
Shell said that discussions with its venture partners are continuing on potential pathways for the expansion. The company noted that any decision will take into account competitiveness, affordability, government support and stakeholder needs.
Pacific Coast Location Supports Asian LNG Access
LNG Canada’s location on Canada’s Pacific Coast provides an important logistical advantage. The terminal offers shorter shipping routes to key Asian markets than U.S. Gulf Coast LNG exporters that rely on the Panama Canal.
This positioning could become increasingly relevant as Asian buyers seek reliable LNG supplies from diversified sources. For Shell, additional Canadian volumes could also complement its global LNG portfolio and provide greater flexibility when disruptions affect supply from other producing regions.
Indigenous Participation Adds Support
LNG Canada has also strengthened its partnerships with Indigenous communities in the region. In July 2026, MNT Investments LP, representing the economic-development organizations of five neighboring First Nations, signed an agreement giving it the option to invest up to C$1 billion for a majority interest in an entity that would own the LNG storage tank planned for the proposed Phase 2 expansion. The agreement represents one of the larger Indigenous investment opportunities in Canadian energy infrastructure.
However, a final investment decision remains subject to the venture partners independently satisfying commercial, fiscal, regulatory and governance requirements.
LNG Canada Strengthens Shell’s Growth Prospects
The project is becoming an important growth and diversification asset for Shell’s Integrated Gas business. By the second quarter of 2026, LNG Canada had delivered more than 100 cargoes and reached full capacity. Its ramp-up contributed to a 17% year-over-year increase in Shell’s first-half 2026 LNG liquefaction volumes.
The Canadian project has also demonstrated the value of geographic diversification. LNG Canada helped offset lost Qatari volumes during the quarter, highlighting how additional supply sources can support Shell’s LNG portfolio when disruptions occur elsewhere.
Phase 2 Offers Long-Term Cash Flow Potential
If approved, LNG Canada Phase 2 would provide Shell with another avenue for long-term LNG growth. The company expects a potential Phase 2 investment to add another layer of free-cash-flow growth in the 2030s, with the final investment decision targeted before the end of 2026, subject to necessary approvals.
Overall, the potential expansion would increase Shell’s exposure to Canadian LNG, strengthen supply flexibility and enhance portfolio diversification. For the company, LNG Canada Phase 2 could also establish another platform for longer-term cash-flow growth as global demand for LNG continues to support investment in new export capacity.
SHEL’s Zacks Rank & Key Picks
London-based Shell is one of the primary oil supermajors — a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some better-ranked stocks like CrossAmerica Partners LP CAPL, Delek Logistics Partners, LP DKL and Magnolia Oil & Gas Corporation MGY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrossAmerica Partners engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. The Zacks Consensus Estimate for CAPL’s 2026 earnings indicates 30.4% year-over-year growth.
Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2026 earnings indicates 19.4% year-over-year growth.
Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The Zacks Consensus Estimate for MGY’s 2026 earnings indicates 64.3% year-over-year growth.
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Shell Eyes Major LNG Canada Phase 2 Expansion to Boost Global Supply

Key Points
This is the No. 1 electricity plant in the state.
RISEC is expected to be immediately accretive to its new owner upon completion.
A large energy asset in New England is about to change hands, if an agreed-upon new deal ends up closing. Global energy giant Shell (NYSE:SHEL) has signed a deal for one of its subsidiaries to sell the business that owns the Rhode Island State Energy Center (RISEC). The buyer is the sprawling U.S. utility company Constellation Energy (NASDAQ:CEG), and the price is $715 million.
RISEC is the No. 1 electricity-generating facility in its state by output; that, plus the transaction's price tag, makes this deal meaningful. Here's how it'll impact both companies.
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Good reasons to own RISEC
That $715 million will be paid entirely in cash by Constellation and is subject to customary purchase price adjustments. Constellation wrote in its press release about the arrangement that the effective net cash outlay is $580 million, due to $135 million in expected first-year tax benefits.
The sale is subject to approval by the relevant regulatory authorities. Both companies said they expect it to close in the first quarter of 2027.
RISEC is a facility powered by natural gas that makes the "juice" with two combustion turbines and a single steam turbine. Its capacity is 609 megawatts of electricity. As a relatively recent construction -- it came onstream in 2002 -- it is efficient, with its combined-cycle operation capturing and reusing heat from the gas turbines to produce additional power. Such a system is notably more efficient than a traditional single-cycle natural gas plant, and its emissions are lower, according to Constellation.
In its press release on the deal, Constellation quoted its CEO, Joe Dominguez, as saying that as the company's business in the New England region expands, "we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system. RISEC checks all of these boxes."
The company expects RISEC to be immediately accretive to its operating profit. It made a point to add that purchasing it won't affect management's goal of executing $5 billion in share repurchases by the end of 2027.
A peak performer
In its own press release on the RISEC sale, Shell simultaneously announced a buy. The subsidiary that (for now) owns RISEC, Shell Energy North America (SENA), has acquired Hunlock Creek Generation, which owns two natural-gas-fired power plants in Pennsylvania. Combined, the pair's generation capacity is 169 megawatts. Shell did not disclose the purchase price.
The company wrote that this deal "secures supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM Interconnection." PJM is the most significant wholesale electricity market and grid operator in the U.S.
One of the two Hunlock assets is a 44-megawatt peaking plant, i.e., a power generation facility that can generate significant electricity on short notice, making it ideal for periods of high demand. What's particularly attractive about such assets is that they operate on the 'capacity market," i.e. they draw revenue simply by a commitment to be available during such peak times. On top of that, they get paid for the electricity they produce in these periods of need.
Like Constellation with RISEC, Shell is expecting Hunlock to be a very productive asset. It wrote that it anticipates this business will exceed the company's benchmark internal rate of return (IRR) for power investments. The company didn't provide detailed guidance on how its latest acquisition might affect the fundamentals.
Powering the future
Both Constellation and Shell are adjusting their U.S. electricity generation portfolios at a time when power demand should rise, in no small part due to the feverish build-out of artificial intelligence (AI) compute capacity in this country. For Constellation, RISEC is a modern and highly productive facility that appears to be essentially plug-and-play -- hence the stated expectation of immediate accretion to its future parent's business. Meanwhile, Shell's take-up of Hunlock feels like an opportunistic buy of an asset that benefits from that two-stream revenue model.
So if I were a shareholder of either company, I'd welcome the news of this little web of deals. After it was announced, Constellation's share price dipped slightly while Shell's moved marginally higher. That's likely because the two companies are large enough that neither buy will make or break their new owners. They're still positive and might even impact their respective fundamentals more than expected, though, so I'd be bullish in both cases.
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Shell Just Sold a $715 Million Stake in a Major New England Asset to Constellation Energy. Here's What Investors Need to Know.

Oil and gas supermajor Chevron CVX is benefiting from strong production and Hess buyout synergies. Structural cost reductions have also improved the economics of its massive energy portfolio.
But for investors, the big question is whether Chevron is turning that operating strength into consistently attractive returns. Looking at return on invested capital (ROIC), cash conversion and earnings linearity, we can say that the company is generating plenty of cash, but its returns and earnings consistency leave room for improvement.
The Operating Engine Is Real
In the last reported quarter, Chevron’s worldwide production jumped 20% year over year to a record 4.07 million barrels of oil equivalent per day, powered by the Hess acquisition, Permian growth, and the Gulf of America. On the cost side, Chevron hit $3 billion in annual run-rate structural savings and $1.5 billion in Hess synergies— both six months ahead of schedule. Management is also guiding toward spending 25% less capital per barrel of oil equivalent in 2026 than in 2025.
Put together, Chevron is pumping more oil, spending less to do it, and cutting the capital it needs per barrel going forward.
But Capital Efficiency Hasn’t Kept Pace
Based on our proprietary calculation, Chevron's trailing-12-month ROIC stands at 7.8%, above its own 10-year median of 6.3%, indicating that capital efficiency remains better than its longer-term historical norm.
But the more recent trend is less encouraging. CVX’s ROIC has slipped from a 5-year median of 9.4% to a 3-year median of 8.3% and now stands at 7.8%. At the same time, its current ROIC is below the 8.6% industry median. Close peers like ExxonMobil XOM and Shell SHEL also generate higher ROIC, at 9.2% and 10.2%, respectively.
The production growth and cost discipline are happening, but they haven't yet translated into a sustained improvement in capital efficiency. Part of the disconnect may be the industry's commodity sensitivity. Higher production and lower unit costs can improve the underlying economics, but weaker oil and gas prices can still compress profits and ROIC faster than the capital base adjusts.
If Hess synergies, structural cost cuts, and a lighter capital footprint in U.S. shale keep compounding, ROIC can increase from here. A downturn in commodity prices or slippage on execution could just as easily pull it the other way. The next few quarters of ROIC data will matter more than any single production headline.
The Cash Flow Story Holds Up
If ROIC shows how productively Chevron uses its capital, cash flow conversion shows whether those earnings are turning into real money. And here, the picture is much cleaner.
Chevron’s TTM cash-flow conversion runs at 220.1%, with free-cash-flow conversion at 131.2%, per our proprietary calculations. Both are a bit below their historical medians, but still comfortably strong. In the last reported quarter, Chevron generated $19.7 billion of operating cash flow excluding working capital, $15.4 billion of adjusted free cash flow, and a record $8.4 billion debt paydown.
Chevron is effective at converting profits into cash to reduce debt, fund investments and return capital to shareholders. That helps offset the ROIC concern. Even if capital efficiency is middling now, the balance sheet is getting materially stronger.
Earnings Are Still Uneven
Chevron's earnings also lack consistency. Per our proprietary model, its 10-year EPS linearity is only 30.9%, below the 34.8% industry median and far below the 100% ideal baseline. Meanwhile, 10-year EPS CAGR (on a TTM basis) of 9.5% trails the industry median of 13.2%.
That inconsistency largely comes down to commodity exposure. Chevron's earnings move with oil, gas and refining prices rather than following a steady operational trajectory. Mixed downstream demand and softer energy prices can therefore add further volatility to earnings.
Peers show a similar spread. ExxonMobil's EPS linearity sits at 37.5%, while Shell's at 29.1%, suggesting earnings volatility is a sector-wide feature.
Tying It Together
Chevron's higher production, cost cuts and Hess synergies are improving the business, and the benefits are already showing up in strong cash generation. But the improvement in operations has not yet translated into a similar improvement in ROIC as Chevron's earnings remain tied to the highly cyclical energy market.
The Zacks Rundown for Chevron
Shares of Chevron have gained 38% year to date, outperforming the industry, ExxonMobil and Shell.
YTD Price Performance Comparison
From a valuation perspective— in terms of forward price-to-earnings ratio— Chevron is trading at a premium compared with the industry average. The stock is also trading above its five-year mean of 11.81.
The Zacks Consensus Estimate for CVX’s 2026 earnings is pegged at $16.51 per share, indicating 126% year-over-year growth. EPS estimates have been revised upward in the last 60 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

CVX's Operations & FCF Are Improving: Why Isn't ROIC Keeping Up?

For Immediate Release
Chicago, IL – September 8, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Shell plc SHEL and KVH Industries, Inc. KVHI.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Apple, Broadcom and Shell
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Broadcom Inc. and Shell plc, as well as a micro-cap stock KVH Industries, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Today's Featured Research Reports
Shares of Apple have gained +19% over the year-to-date period against the Zacks Computer - Micro Computers industry’s gain of +27.3%. The company’s third-quarter fiscal 2026 results showed broad demand across iPhone and Mac, while Services benefited from a record installed base and rising paid subscriptions.
Siri AI and deeper on-device intelligence can strengthen ecosystem engagement and support future hardware upgrades. Apple’s cash generation and continued buybacks also provide support.
However, fourth-quarter fiscal 2026 growth is expected to slow as foreign exchange and supply constraints intensify. Memory costs are rising, recent price increases may test demand, and tariff refunds provided a temporary benefit to margins and earnings.
App Store changes and regulatory actions remain an added risk to Services economics. These offsets leave the long-term growth case intact, but the near-term mix of execution, cost and policy risks supports a Neutral view.
(You can read the full research report on Apple here >>>)
Broadcom’s shares have gained +3% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +23.4%. The company is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software.
Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Free cash flow remains substantial, non-AI semiconductor demand is stabilizing and debt reduction improves financial flexibility.
However, the investment case is balanced by high customer concentration, intense competition, declining gross margin as XPUs mix higher, and execution risk tied to large AI infrastructure commitments.
Broadcom also remains exposed to a sizable debt burden and integration complexity. These factors offset the strength of Broadcom’s AI-led growth profile and support a Neutral recommendation.
(You can read the full research report on Broadcom here >>>)
Shares of Shell have gained +29.7% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry’s gain of +39.1%. The company benefits from higher commodity prices, robust LNG trading, improved refining and chemicals margins and disciplined execution that supports solid cash generation.
Shell continued rewarding shareholders through dividends and buybacks while strengthening its balance sheet with lower debt. In addition, portfolio optimization and strategic investments, including the ARC Resources acquisition, enhance its long-term growth outlook. However, Shell remains exposed to geopolitical disruptions, commodity price volatility and execution risks tied to major acquisitions.
Some businesses, including Marketing and Renewables & Energy Solutions, underperformed, while higher maintenance activity weighs on production. Hence, a Neutral recommendation appears justified as long-term strengths are balanced by near-term uncertainties.
(You can read the full research report on Shell here >>>)
KVH Industries’ shares have gained +2.3% over the year-to-date period against the Zacks Communication - Components industry’s gain of +70.3%. This microcap company with a market capitalization of $128.26 million has an investment case that centers on its shift toward recurring LEO connectivity and managed services. Rising Starlink and OneWeb adoption is supporting airtime revenues, subscriber growth and adjusted EBITDA, while sustained terminal shipments underpin further recurring-revenue expansion.
A debt-free balance sheet and scalable operating platform add flexibility, while managed IT, cybersecurity and multi-network services could deepen customer value. Risks include dependence on third-party LEO providers, declining legacy VSAT and TracVision demand, manufacturing wind-down costs, margin pressure and cash for prepaid capacity.
Execution on value-added services and subscriber monetization remains key. The valuation suggests potential upside for investors if KVHI successfully converts its growing recurring revenue base into stronger margins and cash generation.
(You can read the full research report on KVH Industries here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Zacks Analyst Blog Highlights Apple, Broadcom, Shell and KVH Industries

Friday, September 4, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Shell plc (SHEL), as well as a micro-cap stock KVH Industries, Inc. (KVHI). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Non-farm Payrolls Surprise Higher: +162K, +4.1% Unemployment
Today's Featured Research Reports
Shares of Apple have gained +19% over the year-to-date period against the Zacks Computer - Micro Computers industry’s gain of +27.3%. The company’s third-quarter fiscal 2026 results showed broad demand across iPhone and Mac, while Services benefited from a record installed base and rising paid subscriptions.
Siri AI and deeper on-device intelligence can strengthen ecosystem engagement and support future hardware upgrades. Apple’s cash generation and continued buybacks also provide support.
However, fourth-quarter fiscal 2026 growth is expected to slow as foreign exchange and supply constraints intensify. Memory costs are rising, recent price increases may test demand, and tariff refunds provided a temporary benefit to margins and earnings.
App Store changes and regulatory actions remain an added risk to Services economics. These offsets leave the long-term growth case intact, but the near-term mix of execution, cost and policy risks supports a Neutral view.
(You can read the full research report on Apple here >>>)
Broadcom’s shares have gained +3% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +23.4%. The company is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software.
Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Free cash flow remains substantial, non-AI semiconductor demand is stabilizing and debt reduction improves financial flexibility.
However, the investment case is balanced by high customer concentration, intense competition, declining gross margin as XPUs mix higher, and execution risk tied to large AI infrastructure commitments.
Broadcom also remains exposed to a sizable debt burden and integration complexity. These factors offset the strength of Broadcom’s AI-led growth profile and support a Neutral recommendation.
(You can read the full research report on Broadcom here >>>)
Shares of Shell have gained +29.7% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry’s gain of +39.1%. The company benefits from higher commodity prices, robust LNG trading, improved refining and chemicals margins and disciplined execution that supports solid cash generation.
Shell continued rewarding shareholders through dividends and buybacks while strengthening its balance sheet with lower debt. In addition, portfolio optimization and strategic investments, including the ARC Resources acquisition, enhance its long-term growth outlook. However, Shell remains exposed to geopolitical disruptions, commodity price volatility and execution risks tied to major acquisitions.
Some businesses, including Marketing and Renewables & Energy Solutions, underperformed, while higher maintenance activity weighs on production. Hence, a Neutral recommendation appears justified as long-term strengths are balanced by near-term uncertainties.
(You can read the full research report on Shell here >>>)
KVH Industries’ shares have gained +2.3% over the year-to-date period against the Zacks Communication - Components industry’s gain of +70.3%. This microcap company with a market capitalization of $128.26 million has an investment case that centers on its shift toward recurring LEO connectivity and managed services. Rising Starlink and OneWeb adoption is supporting airtime revenues, subscriber growth and adjusted EBITDA, while sustained terminal shipments underpin further recurring-revenue expansion.
A debt-free balance sheet and scalable operating platform add flexibility, while managed IT, cybersecurity and multi-network services could deepen customer value. Risks include dependence on third-party LEO providers, declining legacy VSAT and TracVision demand, manufacturing wind-down costs, margin pressure and cash for prepaid capacity.
Execution on value-added services and subscriber monetization remains key. The valuation suggests potential upside for investors if KVHI successfully converts its growing recurring revenue base into stronger margins and cash generation.
(You can read the full research report on KVH Industries here >>>)
Other noteworthy reports we are featuring today include Robinhood Markets, Inc. (HOOD), MongoDB, Inc. (MDB) and Watts Water Technologies, Inc. (WTS).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Strong iPhone 17 & Services Growth to Aid Apple's (AAPL) Prospects
Strong Demand for Networking Products Aids Broadcom (AVGO)
Featured Reports
Watts Water (WTS) Benefits from Data Center and Margin Growth
Per the Zacks analyst, Watts Water's data center growth and pricing discipline are supporting margins, while acquisitions and productivity initiatives are strengthening its growth prospects.
FAA Progress and Defense Pipeline Support Archer Aviation (ACHR)
Per the Zacks analyst, Archer Aviation should benefit from FAA progress, UAE launch plans and expanding flight activity. Defense, AI and ample liquidity should support long-term growth.
TNGX's Lead Candidate Drives Upside, But Sparse Pipeline Worries
Per the Zacks Analyst, Tango's lead PRMT5 inhibitor and multiple clinical catalysts support long-term potential, but its lack of marketed products and limited pipeline remain key risks.
Growing Top Line, Solid Capital Position Aid Palomar (PLMR)
Per the Zacks analyst, Palomar's growing revenues driven by higher premiums and net investment income have led to significant growth. Moreover, robust capital position supports capital deployment.
Insperity (NSP) Benefits From PEO Demand Amid Elevated Borrowings
Per the Zacks analyst, Insperity's long-term growth is aided by rising demand for professional employer organization (PEO). Higher debt constrains financial flexibility and raises interest-rate risk.
Loan Sourcing Aids Ellington Financial (EFC), Yet Rate Risks Persist
Per the Zacks analyst, Ellington Financial benefits from wider sourcing, recurring Longbridge earnings and flexible funding supporting income and dividends. However, rate and asset-mark risks persist.
Phibro (PAHC) Rides on Animal Health Arm, Unfavorable FX Ails
Per the Zacks analyst, Phibro's Animal Health arm remains a key contributor to growth. Meanwhile, foreign currency losses were $12.6 million in fiscal 2026, compared with $7.9 million in fiscal 2025.
New Upgrades
Product Diversification, Business Expansion Aid Robinhood (HOOD)
Per the Zacks analyst, product diversification and deeper wallet share will likely continue to aid Robinhood. Business expansion initiatives will deepen its global presence.
MongoDB's Atlas Extends Enterprise Traction Amid Rising AI Data Layers
MongoDB's Atlas platform keeps winning enterprise customers, even as cloud-giant competition and consumption-based revenue add uncertainty to the growth story.
Solid Demand for AI Servers Aids Dell Technologies (DELL) Prospects
Per the Zacks analyst, Dell is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications.
New Downgrades
Oil Price, Execution & Leverage Risks to Hurt Vista Energy (VIST)
Per the Zacks analyst, oil price sensitivity, infrastructure risks, high spending & acquisition leverage pressure Vista Energy's cash flow, deleveraging & financial flexibility.
Weak Commodity Prices and Lower Sales Ail Lindsay (LNN)
The Zacks analyst is concerned that lower sales in its North America irrigation business will hurt Lindsay's results in the near term. Weak commodity prices will also act as a woe.
On Holding AG (ONON) Faces Tariff, Cost Pressures Outlook
Per the Zacks analyst, ONON faces tariff uncertainty and rising SG&A costs as reinvestment in brand, retail and capacity expansion weighs on profitability.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Top Research Reports for Apple, Broadcom & Shell

Shell plc SHEL, the British oil and gas supergiant, stated that it plans to acquire a 30% interest in the Conifer exploration prospect through its subsidiary Shell Offshore. The Conifer prospect in the Gulf of America is operated by BP plc BP, which will retain the remaining 70% stake. In addition, BP has stated that Shell has agreed to purchase a 50% stake in the Tupinambá exploration block in Brazil’s Santos Basin. BP will retain the operatorship ofthe Tupinambá block.
BP Brings Shell on Board to Advance Key Exploration Prospects
BP highlighted that the Gulf of America and Brazil are both important regions for the company. The Santos Basin offshore Brazil is home to some of the largest pre-salt discoveries made by companies like Petrobras. Earlier this year, BP had also mentioned the Bumerangue discovery in Brazil, which could be its largest discoveryin 25 years. Under Brazil’s second Production Sharing Permanent Offer cycle in December 2023, the company secured the Tupinambá block. Drilling operations for the Tupinambá exploration well are anticipated to begin soon.
On the other hand, the Gulf of America has always been central to BP’s upstream portfolio. The company initially secured four offshore leases in the Conifer exploration prospect in August 2023 through Lease Sale 259. Later, BP secured a fifth lease in the deepwater exploration prospect after the BBG-1 Lease Sale. Per the agreement, Shell Offshore Inc. will enter all five leases as a 30% partner, while BP will retain its operatorship. The Conifer exploration well is scheduled to be drilled in 2027.
Partnerships Help Balance Exploration Upside and Capital Risks
The agreements allow BP to retain ownership in both prospects while bringing in an experienced operator to share the risks associated with their development. BP has stated that this arrangement also aligns with its disciplined capital allocation strategy. For Shell, the agreements are beneficial as it enables the company to gain exposure to potentially significant discoveries in two prolific oil-producing regions.
Zacks Rank & Key Picks
Both SHEL and BP currently carry a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Valero Energy VLO and Galp Energia SGPS SA GLPEY. While Valero sports a Zacks Rank #1 (Strong Buy), Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. The company’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region. It is also engaged in the refining and marketing of oil products and natural gas .
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP) : Free Stock Analysis Report

Shell Partners With BP to Expand Deepwater Footprint in Brazil & GoA

Key Points
Big oil companies Exxon and Chevron offer above-average dividend yields backed by long dividend growth track records.
Energy Midstream companies Enbridge and Enterprise Products Partners currently offer higher yields and have multi-decade records of dividend growth.
Some midstream companies come with additional tax complexities that investors need to consider before opting for their higher payouts.
Energy stocks are a go-to source for many investors seeking dividend income. The trailing 12-month yield of energy stocks in the S&P 500 is currently over 4%, more than three times higher than the index's overall average of around 1%. However, yields vary within the energy sector. Right now, midstream companies pay better than big oil.
Here's a look at the differing yields and growth profiles of each side of the barrel.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Big oil can pay big dividends
ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) are two of the world's largest oil companies. They're also leading dividend stocks. Exxon has increased its payment for 43 straight years (fewer than 5% of S&P 500 companies have achieved this), while Chevron has 39 years of annual dividend increases under its belt. Both oil stocks currently offer above-average dividend yields: Chevron's is around 3.5%, while ExxonMobil's is over 2.5%.
The oil giants are in a strong position to continue growing their dividends. Exxon's 2030 plan would see it deliver 13% earnings growth and double-digit cash flow growth, with even higher per-share growth driven by its share repurchase program, assuming constant margins and pricing relative to 2024. Meanwhile, Chevron expects to deliver more than 10% annual free cash flow growth through 2030, assuming oil averages $70 a barrel. Both companies are working to enhance their strategies. Exxon is bidding on Shell's U.S. chemicals assets while Chevron is looking to expand into Iraq. They should have plenty of fuel to continue increasing their high-yielding dividends.
The midstream side of the barrel can pay even better
Most energy midstream companies currently offer even higher yields than those big oil giants. For example, Enterprise Products Partners (NYSE: EPD) currently yields around 5.8%, while Enbridge (NYSE: ENB) yields slightly less at 5.5%. Others in the sector have lower yields, with Williams and Kinder Morgan closer to Exxon and Chevron's range at 2.8% and 3.7%, respectively. Tax complexity can contribute to the higher yields offered by some midstream companies, as Enterprise is a master limited partnership (MLP), while Enbridge is a Canadian corporation.
Many midstream companies have strong dividend growth records. Enbridge has increased its dividend for 31 straight years (in Canadian dollars), while Enterprise has raised its distribution for 28 consecutive years. Both companies should have the fuel to continue growing their payouts. Enterprise currently has $6.5 billion of major capital projects under construction that should enter service through early 2029. Meanwhile, Enbridge has a massive 41 billion Canadian dollars ($29.6 billion) in secured projects in its backlog that it expects to finish through the early 2030s. It recently enhanced its strategy by purchasing Salt Creek Midstream's crude gathering business for $600 million and securing CA$2.7 billion ($1.4 billion) in funding from private equity giants KKR and Apollo to support Westcoast pipeline expansions in Canada.
Verdict: Midstream wins if tax complexity isn't a concern
The energy midstream sector offers higher current yields than big oil, especially among MLPs and Canadian companies. So, if income is your sole aim, and you're fine with dealing with the tax complexities (MLPs send Schedule K-1 Federal tax forms, while there's a 15% withholding tax on Canadian dividends paid on shares held in a regular brokerage account), they're the better side of the barrel to buy right now.
Should you buy stock in Enbridge right now?
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Matt DiLallo has positions in Chevron, Enbridge, Enterprise Products Partners, KKR, and Kinder Morgan. The Motley Fool has positions in and recommends Chevron, Enbridge, KKR, and Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Shell PLC

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