3 Oil Stocks With Venezuela Upside That Could Reshape Cash Flow
Oil majors are being pulled back into Venezuela, and the money involved is hard to ignore. Chevron’s planned US$7b push and other global players expanding projects create fresh questions for anyone watching big integrated energy stocks. This is not just about crude volumes; it is about how policy, low cost fields and new contracts might reshape cash flows. This article breaks down three stocks exposed to that story.
The stocks below are just a sample of large integrated oil and gas companies that touch this Venezuela story, while the full screen surfaces 32 more companies with equally compelling narratives that are not covered here. To identify and analyze your own highest conviction ideas in this space, head straight into the Integrated Oil & Gas Majors screener.
Shell (LSE:SHEL)
Overview: Shell is a large, global energy and petrochemical company that runs the full chain of the oil and gas system, from exploring and producing resources in places like the Americas to processing them in refineries and chemical plants and selling fuels, lubricants, LNG and power to end customers. It also offers lower carbon solutions such as biofuels and renewable power, which helps Shell plug into future demand while still being closely tied to long-life, low-cost resources that fit the Integrated Oil & Gas Majors theme.
Operations: Shell generates most of its revenue from Marketing at about $135b and Chemicals and Products at about $132b, with Integrated Gas contributing about $49b, Renewables and Energy Solutions about $42b, Upstream about $44b and a large inter segment adjustment of about $105b.
Market Cap: £190.5b
Shell gives you exposure to a full cycle, investment grade integrated major that can tap low cost, long life barrels in places like Venezuela while also monetising gas and LNG through a global trading and optimization engine. The company’s LNG reach, large ARC Resources acquisition and Venezuela focused gas discussions underline how management is leaning into advantaged resources that can support cash flows through different oil price scenarios. At the same time, investors need to weigh this against an unstable dividend record, meaningful insider selling and reliance on external funding. If you want to understand whether Shell’s valuation gap, LNG position and Venezuela angle still leave a margin of safety, the details behind those numbers matter.
Shell’s LNG reach and Venezuela exposure could be masking a very different risk reward profile than the headline story suggests. Scan the 3 key rewards and 3 important warning signs (1 is major!) to see what might be hiding in plain sight.
Eni (BIT:ENI)
Overview: Eni is a large integrated energy company that explores, produces, refines and markets oil and gas across Europe, Africa, the Americas and Asia, while also building out LNG, biofuels and renewable power. This provides direct exposure to long-life, low-cost barrels in places like Venezuela alongside transition projects.
Operations: Eni generates most of its revenue from Exploration & Production at about €55.7b, Enilive at about €21.3b, Refining and Chemicals at about €19.3b and Global Gas & LNG Portfolio and Power at about €17.5b. These figures are partly offset by around €35.7b of intersegment sales and a €10.2b segment adjustment.
Market Cap: €69.4b
Eni may be relevant if you are looking at integrated majors with exposure to Venezuela and the broader Americas. Management highlights positions in the Orinoco belt, offshore oil at Corocoro and the Perla gas field, alongside LNG and gas projects in Argentina and Egypt, which together indicate substantial, long-dated resource exposure. At the same time, you would need to consider forecast declines in revenue and earnings, funding that leans on external borrowing and loss-making legacy chemicals and renewables businesses. For investors who want a mix of global LNG growth, Venezuelan exposure and an apparently undemanding P/E, assessing the balance of opportunity and risk in Eni’s portfolio is a key part of the analysis.
Eni’s Venezuela and LNG story looks like a classic valuation puzzle that many investors may be misreading. Get the 3 key rewards and 2 important warning signs (1 is major!) to see what that apparent P/E gap might really be hiding.
ExxonMobil Holdings (XOM)
Overview: ExxonMobil Holdings is one of the largest integrated oil and gas companies globally, producing crude oil and natural gas and converting them into fuels, chemicals and specialty products, while also building a portfolio of lower emission businesses such as carbon capture, hydrogen, low carbon fuels and lithium. Its scale across upstream, refining, chemicals and branded products places ExxonMobil Holdings squarely in the Integrated Oil & Gas Majors theme, with potential access to long life, low cost resources that policy makers want in the system.
Operations: ExxonMobil Holdings generates most of its revenue from Energy Products at about US$334.0b, with Upstream contributing about US$112.1b, Chemical Products about US$34.4b and Specialty Products about US$21.2b, partly offset by around US$140.6b of intersegment eliminations.
Market Cap: US$676.6b
ExxonMobil Holdings may warrant a close look if you want a large, integrated major that can plug into policy backed access to long life, lower cost barrels while still funding activity in areas like Guyana, the Permian and lower emission projects. Management has discussed using heavy oil know how from Canada to make Venezuelan resources competitive, which could matter if the current push into Venezuela widens beyond Chevron and Eni. At the same time, earnings growth expectations are described as steady rather than explosive, ROE sits in the low teens and the stock trades on a P/E premium to some peers, so investors are paying for quality and scale. A key consideration is whether that premium still leaves enough potential upside once Venezuela, Guyana and low carbon initiatives are fully reflected in the valuation.
ExxonMobil Holdings looks like a classic quality premium story, yet that P/E premium and steady earnings expectations suggest something bigger may be brewing. Tap into the analyst forecasts for ExxonMobil Holdings to see what the market might be missing.
Seeking Alternatives Before The Crowd?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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