|Shell A (LSE:RDSA)
Intraday Stock Chart
Today : Friday 21 October 2016
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CALGARY, Alberta--Royal Dutch Shell PLC said it had reached a deal to sell $1 billion of shale-oil and gas assets in Western Canada as part of a global divestment program to raise cash and streamline its business operations.
Shell said Thursday it would sell developed and undeveloped acreage in the Canadian provinces of Alberta and British Columbia to Calgary-based Tourmaline Oil Corp. Those assets currently produce dry gas and natural-gas liquids equivalent to 24,850 barrels a day of oil.
The deal comes as Shell seeks to shed $30 billion assets world-wide after its $50 billion acquisition of BG Group PLC in February. It represents a further retrenchment for Shell in Canada, where a year ago it shelved plans for a major new oil-sands project and took a $2 billion write-down.
"We are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans," Andy Brown, the head of Shell's exploration and production business, said in a statement.
The oil-and-gas major called the approximately 206,000 net acres it is selling to Tourmaline "noncore" assets and said it retained about 430,000 net acres in Alberta's Duvernay Shale basin and some 218,000 net acres in the Montney Formation of British Columbia.
In addition to the acreage, Tourmaline will acquire three Canadian natural gas processing plants and about 450 miles of pipelines from Shell as part of the deal, which is valued at $1.04 billion, the Canadian company said.
Write to Chester Dawson at firstname.lastname@example.org
(END) Dow Jones Newswires
October 21, 2016 03:25 ET (07:25 GMT)|
|But then how about zerohedge???? Oil is boring.
|Oil & Gas Argentina
Shell Argentina to bring Vaca Muerta block on stream by year-end
By Andrew Baker - Tuesday, October 4, 2016|
|Royal Dutch Shell: Prepare For A Turnaround
Sep.20.16 | About: Royal Dutch (RDS.A)
Long/short equity, value, special situations, growth
Royal Dutch Shell’s upstream losses had almost tripled last quarter due to lower realizations, but this segment can make a comeback as the oil pricing scenario has improved.
Oil prices are averaging higher in the ongoing quarter as compared to the first half of 2016, driven by higher consumption and lower output, a trend that will continue.
Oil inventories will decline on account of lower capital investments in the space, leading to lower production, improving the demand-supply balance, and improving pricing, which is good news for Shell.
Shell is well-placed to tap an increase in oil prices as it is focused on lowering its development and production costs in the deepwater.
Shell, in fact, has achieved a break-even cost of only $45 per barrel at its new deepwater assets, which will allow it to generate stronger margins as prices improve.
The upstream business of oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has been in a soup this year, along with the weakness in the downstream. However, as I had discussed earlier this month, the downstream segment is on the path of a comeback on the back of higher refining margins. But, can investors expect a similar turnaround in the upstream segment? Let's take a look.
Why the upstream business will recover
As mentioned above, the upstream business of Shell has been in a soup this year. I'm saying this because its loss in this segment had almost tripled last quarter to $1.3 billion as compared to $500 million in the year-ago period. The primary reason behind the weakness in the upstream segment was the lower price realization achieved by Shell last quarter. In fact, the company's liquids realizations were down 29% on a year-over-year basis last quarter, while natural gas price realizations declined 28%.
As a result of this pricing weakness, Royal Dutch Shell's upstream business had taken a massive hit last quarter. However, the good part to note is that oil prices have started getting better of late and this should lead to an improvement in Shell's realizations going forward.|
the grumpy old men
|New York Attorney General Eric Schneiderman is investigating why Exxon Mobil Corp. hasn't written down the value of its assets, two years into a pronounced crash in oil prices.
Mr. Schneiderman's office, which has been probing Exxon's past knowledge of the impact of climate change and how it could affect its future business, is also examining the company's accounting practices, according to people familiar with the matter.
An Exxon spokesman declined to comment about the investigation by the Democratic attorney general but said Exxon follows all rules and regulations.
Since 2014, oil producers world-wide have been forced to recognize that wells they plan to drill in the future are worth $200 billion less than they once thought, according to consultancy Rystad Energy. Because the fall in prices means billions of barrels cannot be economically tapped, such revisions have become a staple of oil-patch earnings, helping to push losses to record levels in recent years.
Exxon hasn't taken any write-downs—the only major oil producer not to do so—which has led some analysts to question its accounting practices.
The company has played down the criticism, saying it is extremely conservative in booking the value of new potential fields and wells. That reduces its exposure to write-downs if the assets later prove to be worth less than expected, it says.
Exxon's ability to avoid write-downs—and potential losses that come with them—has been among the factors helping the company outperform rivals since prices began falling in mid-2014. Exxon shares have fallen by about half of the average of top peers Chevron Corp., Royal Dutch Shell PLC, Total SA and BP PLC. Since 2014, those companies have booked more than $50 billion overall in write-downs and impairments.
Yet Exxon has lost money for six straight quarters in its U.S. drilling business. The company had to remove the equivalent of more than 900 million barrels of U.S. natural gas reserves from its books in 2015, an acknowledgment that wells on those properties cannot currently be economically drilled. When it agreed to purchase shale explorer XTO Energy Inc. in 2009 for $31 billion, natural gas sold for almost double what it does now.
For many producers, such losses in net income and reserves would make write-downs inevitable, but Exxon didn't write down the overall value of its reserves. The lack of such a step at Exxon "raises serious questions of financial stewardship," Paul Sankey, an oil analyst at Wolfe Research, wrote last month.
"It is impossible to believe that no assets have been impaired," he said.
The process for booking oil and gas reserves, and recognizing when they fall, is separate from accounting for how the value of those reserves changes over time on a company balance sheet.
John Herrlin, an analyst at Socié té Gé né rale, came to a different conclusion in an investor note last month, writing that about three fourths of Exxon's reserves are from areas with producing wells, a factor that makes impairments less likely than in undeveloped areas.
Exxon Chief Executive Rex Tillerson told trade publication Energy Intelligence last year that the company has been able to avoid write-downs because it places a high burden on executives to ensure that projects can work at lower prices, and holds them accountable.
"We don't do write-downs," Mr. Tillerson told the publication. "We are not going to bail you out by writing it down. That is the message to our organization."
Out of the 40 biggest publicly traded oil companies in the world, Exxon is the only one that hasn't booked any impairments in the last 10 years, according to S&P Global Market Intelligence.
In 2013, the U.S. Securities and Exchange Commission asked Exxon why it hadn't booked any impairments in the previous year, citing a speech Mr. Tillerson gave in June 2012 in which he said the company was making "no money" due to declining natural-gas prices.
Exxon's response then mirrors its position now: That short-term price fluctuations aren't enough to render worthless wells that would potentially be drilled over decades. Another key to the company's assessment is the view that its assets will hold value when prices eventually rebound.
Natural gas rose substantially in 2013 after the SEC's inquiry, but many oil executives and forecasters have said they expect prices to remain low for some time.
Last year, Exxon scrutinized its assets most at risk for impairment and found that future cash flows anticipated from its fields were "substantially" higher than the book value of the asset. Exxon "does not view temporarily low prices or margins as a trigger event for conducting impairment tests," according to a company filing.
The company is known for its conservatism in recognizing the value of reserves, a practice that results in lower write-downs, said Sean Heinroth, a principal in the energy practice at management consultancy A.T. Kearney. Exxon is also known for rigidly interpreting regulations and sometimes pushing back against regulators if company leaders feel their practices follow the law, he said.
"I would have expected some write-downs, even to avoid being called out on it, on being the last company not to have write-downs," he said.
Exxon has previously faced a lawsuit over its impairment practices. Plaintiffs including the Ohio state pension system alleged in a 2004 class-action suit that the company's failure to impair its properties undercut shareholders of Mobil Corp. in the 1999 deal that combined the companies.
The suit alleged that Exxon should have seen write-downs of between $3 billion to $7 billion in the late 1990s, another period of historically low prices. It included an allegation from a former Exxon insider that the company "operated under an order" by former Chief Executive Lee Raymond that "no impairment would be recorded."
Exxon denied the allegations. The lawsuit was dismissed because the statute of limitations on such claims had passed.
Dave Michaels contributed to this article.
(END) Dow Jones Newswires
September 16, 2016 06:45 ET (10:45 GMT)|
(RTTNews.com) - Royal Dutch Shell plc (RDS-B, RDSB.L, RDSA.L, RDS-A) said that new natural gas discoveries were made earlier this month in Alam El-Shawish
concession area in Egypt's western desert. The discovery is one of the largest in Egypt's western desert in recent years.
, chairman and CEO of Shell in Egypt, said that the initial estimates indicated about 500 billion cubic feet of natural gas was discovered, with more possible reserves yet to be uncovered. The CEO added that Shell used several new technologies to dig one of the deepest wells in the western desert region.
The discovery could produce between 10 percent and 15 percent of the total production of Badr el-Din Petroleum Co., which is a joint venture that acts on behalf of Shell and the state-owned Egyptian General Petroleum Corporation or EGPC.
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|Door , reach , open , bail.|
|Payment date September 19, 2016|
|Largest Oil Companies' Debts Hit Record High -- Update
Dow Jones News
Shell A (LSE:RDSA)
Intraday Stock Chart
Today : Thursday 25 August 2016
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By Selina Williams and Bradley Olson
Some of the world's largest energy companies are saddled with their highest debt levels ever as they struggle with low crude prices, raising worries about their ability to pay dividends and find new barrels.
Exxon Mobil Corp., Royal Dutch Shell PLC, BP PLC and Chevron Corp. hold a combined net debt of $184 billion -- more than double their debt levels in 2014, when oil prices began a steep descent that eventually bottomed out at $27 a barrel earlier this year. Crude prices have rebounded since, but still hover near $50 a barrel.
The soaring debt levels are a fresh reminder of the toll the two-year price slump has taken on the oil industry. Just a decade ago, these four companies were hauled before Congress to explain "windfall profits" but now can't cover expenses with normal cash flow.
Executives at BP, Shell, Exxon and Chevron have assured investors that they will generate enough cash in 2017 to pay for new investments and dividends, but some shareholders are skeptical. In the first half of 2015, the companies fell short of that goal by $40 billion, according to a Wall Street Journal analysis of their numbers.
"Eventually something will give," said Michael Hulme, manager of the $550 million Carmignac Commodities Fund, which holds stakes in Shell and Exxon. "These companies won't be able to maintain the current dividends at $50 to $60 oil -- it's unsustainable."
The debt is piling up despite cuts of billions of dollars on new projects and current operations. Repaying the loans could weigh the companies down for years, crimping their ability to make investments elsewhere and keep pumping ever more oil and gas.
The companies spent more than 100% of their profits on dividends last year. This year, the problem got worse. In the April-to-June period, Exxon paid $3.1 billion in dividends and had just $1.7 billion in net income, according to S&P Global Market Intelligence. Shell paid $1.26 billion in interest in the first half of 2016, compared with $726 million in the same period a year earlier.
"They are just not spending enough to boost production," said Jonathan Waghorn, co-portfolio manager in London at Guinness Atkinson Asset Management Inc. who helps oversee more than $400 million across a range of energy funds, including shares in Exxon, BP, Chevron and Shell.
The oil companies say they have many tools to deploy to help defray debt, including selling assets and offering shareholders more shares instead of a cash dividend, as well as continuing to cut costs. Record-low interest rates are helping ease some of the pain.
They also say the steep levels of debt are temporary as the companies restructure, and the debt will fall when oil prices rise.
"We are in a transitional stage in 2016," said Shell Chief Executive Ben van Beurden during last month's earnings disclosures. The company reported a rise in net debt to over $75 billion at the end of the second quarter, in large part because of its acquisition of BG Group PLC.
BP has said it expects to be able to pay for its operations, make new investments and meet its dividend at an oil price of between $50 and $55 a barrel next year.
But analysts and investors say the oil slump is making it harder than ever for companies to raise money with asset sales to pay off debt. Handing out more shares to shareholders is only storing up the dividend problem for the future when the companies will need to pay up. Even the boost many companies got from bumper profits from their refining divisions -- which tend to do well when prices are low -- looks to be coming to an end as a glut of gasoline erodes fuel prices, say investors and analysts.
Still, some funds see BP, Shell Exxon and Chevron as big enough to weather problems for the next year and a half. Wilmington Trust has reduced its exposure to energy companies it deems more risky in favor of other corporate debt. But the firm remains invested in debt issued by BP, Chevron and Shell
"They're so big, they can diversity, they have more levers to push and pull in terms of shoring up their creditworthiness," said Wilmer Stith, senior fixed-income portfolio manager at Wilmington Trust, which has $73 billion in assets under management.
Only another long period of oil below $40 a barrel would pose a challenge that could prompt dividend cuts, said Iain Reid, senior oil analyst at Macquarie Capital. A Goldman Sachs report this week projected oil prices remaining between $45 and $50 a barrel for much of the next year.
"The question is, can they get through this year and next without doing something radical like cutting dividends?" said Iain Reid, senior oil analyst at Macquarie Capital.
The rise in net debt has helped push these companies' ratio of net debt to equity to the highest level in years, which influences the ratings given by credit agencies. S&P has already downgraded Shell, Chevron, Exxon and BP, though they all remain highly rated.
Shell's debt-to-equity ratio is at 28% and Chief Financial Officer Simon Henry said last month it could even reach its targeted maximum of 30%. BP's gearing is over 25%, while Chevron's is 20% and Exxon's is around 18%.
By comparison, in 2012, Shell's gearing was around 10%, and Exxon's was 1.2%. Back in 2005, when oil prices were climbing steadily, Exxon had no debt, and its profits were so high that its executives and those from other big oil companies were called to testify in front of the U.S. Senate about their so-called windfall profits.
Chevron's Chief Financial Officer Patricia Yarrington said in April that the company's higher levels of debt were expected. "We could handle that if it's temporary," she said.
Much of the new debt has been in corporate bonds. Exxon, for instance, issued $12 billion in debt in February. Two months later, the company was downgraded by S&P Global Ratings, losing the triple-A credit rating that it had held since 1930.
Exxon Chief Executive Rex Tillerson has assured investors that Exxon remains committed to paying its dividend.
The company has increased shareholder payments for 34 straight years, although those increases have been modest in the past two years. Mr. Tillerson and others have noted that Exxon has the ability to borrow further. If anything, the company has signaled a willingness to go further into debt for strategic opportunities, such as buying assets, including InterOil Corp., a small company focused on gas exports in Papua New Guinea that Exxon agreed to acquire for an estimated $2.5 billion in July
"We're not going to forgo attractive opportunities," said Jeff Woodbury, Exxon's vice president of investor relations, on an investor call last month.
--Heather Gillers in New York contributed to this article.
Write to Selina Williams at firstname.lastname@example.org and Bradley Olson at Bradley.Olson@wsj.com
(END) Dow Jones Newswires
August 24, 2016 16:57 ET (20:57 GMT)|
|Ansley Harriot the TV Cook has gone negative on RSDA and is opening up a large short trade !!! Time to get out guys, this will fall now.|
|Pounds sterling and euro equivalents announcement date September 5, 2016
Payment date September 19, 2016|
|Shell Makes GoM Discovery In Norphlet Trend
Subsea Engineering News
Friday, August 12, 2016 - 7:00am Print
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Royal Dutch Shell is adding to its deepwater hits in the U.S. Gulf of Mexico’s (GoM) Mississippi Canyon area, unveiling on July 28 that it has made a discovery at its Fort Sumter prospect.
The discovery was announced the same day Shell delivered its second-quarter 2016 results and updates on its $30 billion divestment program and growth priorities such as global deepwater.
Initial estimates show the discovery in the deep Norphlet geologic trend could hold recoverable resources of more than an estimated 125 MMboe, Shell said. Fort Sumter was drilled in a water depth of 7,062 ft (2,152 m) to a total vertical drilling depth of 28,016 ft (8,539 m) measured depth.
“Further appraisal drilling and planned wells in adjacent structures could considerably increase recoverable potential in the vicinity of this particular well,” Shell CFO Simon Henry said on the company’s earnings call. “That in itself builds upon recent Norphlet exploration success at Appomattox in 2010, Vicksburg in 2013 and Rydberg in 2014, bringing the total resources added by exploration in the Gulf for Shell since 2010 to over 1.3 billion [barrels of oil equivalent].”
Resources from the discoveries could be produced through Shell’s Appomattox project, which is currently under construction. The project includes a semisubmersible, four-column production host platform. Its subsea system will feature six drill centers as well as 15 producing wells and five water injection wells.
Fort Sumter’s proximity near other discoveries adds to the area’s prospectivity, added Ceri Powell, executive vice president of exploration for Shell.
“These successes demonstrate there is still running room in the producing basins of our heartlands where large, high-value discoveries have the potential to further strengthen our deepwater competitiveness,R21; Powell said in a statement about the discovery.
Delivering profits from new projects is among the levers Shell said it is pulling to manage finances during the downturn. Like other oil and gas companies, Shell has reacted to lower oil prices by reducing costs—including cutting thousands of employees—selling assets, lowering operating costs and merging with peers to strengthen presence and offerings.
Shell, which completed its acquisition of BG Group in February, reported its second-quarter current cost of supplies, or net income, was about $1 billion. This was down from about $3.8 billion in the same quarter last year, mostly due to losses in the upstream segment, but not far off from the $1.5 billion reported in the first quarter. Cash flow from operating activities dropped 62% to about $2.3 billion.
In the second quarter, oil and gas production increased to 3.51 MMboe/d from 2.73 MMboe/d in second-quarter 2015.