From Morningstar: 2025-03-27 06:53:00

Shell announced cost reductions, reduced capital spending guidance, and increased shareholder return targets. The 2023 plan was well received, confirming management’s focus on returns. Shell increased cost reduction efforts to $5-$7 billion by 2028 and raised shareholder payout target to 40%-50% of cash flow. Shares remain modestly undervalued. Shell’s strategy meets investor demands for capital discipline, cost improvement, and shareholder returns. The initial “sprint” successfully delivered financial targets, but Shell’s valuation has not closed the gap with US peers. Management credibility and long-term targets should help. Morningstar does not own shares in any mentioned securities.



Read more at Morningstar: Shell Extends Winning Formula With Investor Update