Shell PLC (LSE:SHEL, NYSE:SHEL) has the edge over BP PLC (LSE:BP.) going into 2025 due to their respective balance sheets, according to analysts at JP Morgan.
While both should get a lift from the recent crude price rally, the US bank sees the agenda starting to pivot towards two thematics - superior barbells of short-term resilience, long-term leverage and/or outsized (low carbon) capital efficiency potential.
Equinor scores best on these metrics among the Europeans, but BP (10% upside) and Shell (more than 5%) also do well.
But while BP has the scope to cut annual capex to US$14bn, its underlying cash cycle fundamentals look stretched hence it is rated 'underweight' while Shell gets an 'overweight' tag.
Shares in Shell were flat at 2,677p.