Oil giant Shell (SHEL) said today it is on the hunt for acquisitions as it seeks to take advantage of sustained low oil prices. Its shares rose in mid-trading.
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Bolt On But Not BP
Speaking after the group released bumper Q3 earnings and a huge share buyback plan, chief executive Wael Sawan said it was eyeing up “bolt-on” deals. However, that is unlikely to include a swoop for troubled rival BP (BP).
“There is a very credible scenario that there is an oversupply in the oil market in 2026,” he said. “We are focused on what opportunities emerge in a lower oil price environment. I think the strength of Shell today is that we have options to be able to move in areas such as deepwater oil and gas production and liquefied natural gas. Of course, our bar for any M&A is high, but we continue to look at opportunities.”
However, he told The Times newspaper that he was skeptical about large-scale M&A, likely in reference to BP. There have been consistent rumors that BP is a takeover target given its struggling share price in recent times.
Strong Earnings
It came as Shell reported adjusted earnings of $5.43 billion for the third quarter of 2025, surpassing analyst guidance.
It said this represented a 27% increase on the previous quarter but was lower than the $6 billion reported over the same period a year earlier. Shell’s total production was equivalent to 2.8 million barrels of oil per day in the third quarter, broadly flat on a year earlier.
Volumes improved against the previous quarter, while the business also flagged a $161 million benefit from favorable tax write-offs over the quarter.
Shell is also a consistent dividend payer – see below – and is known for its share buybacks.
It added that it would hand a further $3.5 billion back to shareholders. That marks the 16th consecutive quarter in which it has bought back at least $3 billion of its own shares.
Is SHEL a Good Stock to Buy Now?
On TipRanks, SHEL has a Moderate Buy consensus based on 5 Buy and 6 Hold ratings. Its highest price target is $91. SHEL stock’s consensus price target is $75.80, implying a 0.34% upside.
