Shell: buybacks at this price are the best use of cash
At less than eight times free cash flow, Shell is retiring its own shares more cheaply than it could buy reserves.
James WhitlockUK Equities AnalystCompleted 12 Oct 2026, 14:45 CEST · First published 13 Oct 2026, 08:45 CEST
Updated 13 Oct 2026, 10:20 CEST
6 min read
Shell has repurchased close to a fifth of its share count since 2022. At today's price, we believe continuing to do so is a better use of capital than any acquisition or low-carbon project on offer.
At a Brent price of $75, we estimate Shell generates around $40bn of free cash flow a year after maintenance capital expenditure. The integrated gas business, the world's largest LNG portfolio, accounts for a growing share.
Owner Yield · Premium
Continue reading with Owner Yield
Our full company research, ratings and fair values, without advertising.
Free for 14 days, then [price] per month or [price] per year. Cancel before the trial ends and you pay nothing.
Disclosure
Long position — covering the author and persons closely associated with them.
The author holds a long position in Shell.
Other relationships: None.
This article is general information and the author's opinion. It is not investment advice and does not take into account your personal circumstances. Past performance is no guide to future returns. See our disclaimer.
Related
FTSE 100 closes at record as miners and banks rally
James Whitlock · 16 Oct 2026 · 2 min read
Diageo: the destocking is over; the de-rating may not be
James Whitlock · 9 Oct 2026 · 5 min read