Shell Share Discussion Threads

[waldron] 22/9/2021 07:27

European stocks head for higher open as markets prepare for Fed update

Published Wed, Sep 22 202112:21 AM EDT

Holly Ellyatt
@HollyEllyatt
cnbc


Key Points

European stocks are expected to open higher on Wednesday as global investors await the outcome of the latest meeting of the U.S. Federal Reserve and as tensions ease over embattled Chinese property developer Evergrande.

Britain’s FTSE is seen opening 16 points higher at 6,985, Germany’s DAX 52 points higher at 15,364, France’s CAC 40 up 28 points at 6,566 and Italy’s FTSE MIB 11 points higher at 25,059, according to IG.

[waldron] 22/9/2021 07:26

European stocks head for higher open as markets prepare for Fed update

Published Wed, Sep 22 202112:21 AM EDT

Holly Ellyatt
@HollyEllyatt
cnbc


Key Points

European stocks are expected to open higher on Wednesday as global investors await the outcome of the latest meeting of the U.S. Federal Reserve and as tensions ease over embattled Chinese property developer Evergrande.

Britain’s FTSE is seen opening 16 points higher at 6,985, Germany’s DAX 52 points higher at 15,364, France’s CAC 40 up 28 points at 6,566 and Italy’s FTSE MIB 11 points higher at 25,059, according to IG.

[waldron] 21/9/2021 19:21

Shell investors get surprise $7-billion payout after Permian shale deal

The world's top oil producers and U.S. shale explorers have increasingly focused on shareholder returns over growth, following years of expansion

Author of the article:

Bloomberg News
Lynn Doan, Kevin Crowley and Laura Hurst
Publishing date:
Sep 21, 2021 • 5 hours ago • 2 minute read •


Royal Dutch Shell Plc shareholders will get an unexpected US$7-billion payout after the company promised to give them three quarters of the proceeds from the sale of Permian shale oil fields to ConocoPhillips.

The cash pledge comes less than two months after Shell raised its dividend by almost 40 per cent and started US$2 billion of share buybacks. It’s more evidence that the energy giant is working hard to regain the faith of investors after making a historic cut to its payout last year in the depths of the COVID-19 pandemic.

“For investors elsewhere, a divestment immediately allocated into a buyback to the tune of US$7 billion, with balance sheet strengthening on top, is rare,” analysts from Bernstein Research said in a note. It “proves without any doubt that Shell are focused on winning shareholders back.”

Shell’s B shares jumped 3.2 per cent to 1,477 pence at 8:07 a.m. in London.

Of the US$9.5 billion Shell will receive from Monday’s sale of the Permian, US$2.5 billion will go toward debt reduction. For the remainder, “the base case is for that to go as share buybacks,” Wael Sawan, Shell’s upstream director, said in an interview after the deal was announced on Monday.


The final decision will be made by the company’s board, likely in the fourth quarter when the transaction formally closes, he said. The US$7 billion payout will be in addition to the company’s prior pledge to distribute 20 per cent to 30 per cent of cash flow from operations to investors, Shell said in a statement.

The world’s top oil producers and U.S. shale explorers have increasingly focused on shareholder returns over growth, following years of expansion. Oil prices near the highest level in three years have provided them with abundant cash to do that.

“Being able to transact with a healthy, robust oil price compared to where it has been in the last few years, and in a market that is hotly consolidating at the moment, is a prudent opportunity for us to grab,” Sawan said. The deal gives Shell the equivalent of more than a decade’s worth of cash flow from the Permian assets, he said.

[sarkasm] 21/9/2021 17:03

Royal Dutch Shell A
1,489 +3.63%


Royal Dutch Shell B
1,484.6 +3.77%

[sarkasm] 21/9/2021 16:16

Shell's bias toward investor returns to support shares near-term, RBC says

Sep. 21, 2021 10:12 AM ETRoyal Dutch Shell plc (RDS.A)ConocoPhillips (COP)Royal Dutch Shell plc (RDS.B)By: Carl Surran, SA News Editor


The market will react positively to Royal Dutch Shell's (RDS.A +3.4%) $9.5B sale of its Permian Basin assets to ConocoPhillips (COP +1.3%), RBC Capital analysts say, given the relatively attractive price tag and the allocation of 75% of the sale proceeds to shareholders, which should support shares in the near-term.

"It has been our long held view that Shell had a sub-scale position in the Permian relative to its U.S. peers, and given its poor track record in the asset class, it would make sense to divest to another operator," RBC writes.

Given Shell's current share price, RBC expects the bias of the company's shareholder distributions to come as share buybacks, so the bank says its previous 2022 buyback estimate of $6B could easily double.

"For investors elsewhere, a divestment immediately allocated into a buyback to the tune of $7 billion, with balance sheet strengthening on top, is rare," Bernstein analysts say, adding the move "proves without any doubt that Shell are focused on winning shareholders back."
Shell's promise "should alleviate fears any incremental free cash will be sunk into renewables," Redburn analyst Stuart Joyner also says.

The sale follows Shell's plans to invest more in renewable fuels and eliminate net carbon emissions by 2050.

[makinbuks] 21/9/2021 16:00

The Conoco deal looks positive too

[makinbuks] 21/9/2021 16:00

Arianne, I could care less about ESG but unfortunately fund managers believe they have to act of be left behind. Its a perception thing. It may pass in time but not for a good while. Meantime Shell is a fantastic investment throwing off masses of cash. We just have to enjoy that cash being returned and not get too frustrated that it doesn't bring a re-rating

[sarkasm] 21/9/2021 13:12

Royal Dutch Shell A
1,510.2 +5.11%



Royal Dutch Shell B
1,501.8 +4.98%


Looking good BillyRay

[waldron] 21/9/2021 07:08

European markets set for higher open despite nerves over China; Fed meeting ahead

Published Tue, Sep 21 202112:40 AM EDTUpdated An Hour Ago

Holly Ellyatt
@HollyEllyatt
cnbc


Key Points

European stocks are expected to open higher on Tuesday, bouncing back from heightened investor nerves over a Chinese property developer and ahead of a two-day meeting of the U.S. Federal Reserve.

London’s FTSE is seen opening 42 points higher at 6,949, Germany’s DAX 75 points higher at 15,209, France’s CAC 40 up 19 points at 6,464 and Italy’s FTSE MIB 122 points higher at 24,814, according to IG.

[waldron] 20/9/2021 23:44

Royal Dutch Shell plc Shell Signs Agreement To Sell Permian Interest For $9.5 Billion To Conocophillips

20/09/2021 9:35pm

UK Regulatory (RNS & others)






TIDMRDSA TIDMRDSB


HOUSTON (September 20, 2021) - Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell's interest in the Permian to ConocoPhillips, subject to regulatory approvals.

"After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition," said Wael Sawan, Upstream Director. "This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team's outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions."

Shell's Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.

Notes to Editors

-- Shell's Permian business includes ownership in approximately 225k net
acres with current production of around 175 thousand barrels equivalent
per day.

-- This transaction constitutes a Class 2 transaction for RDS plc under the
UK Listing Rules. The gross assets that are subject of this transaction
amounted to $10.5 billion December 31, 2020. The Permian business
recorded a before-tax operating loss of $491 million for the year ended
December 31, 2020. The transaction is expected to result in an after-tax
gain of $2.4 to $2.6 billion, subject to adjustments.

-- A further update to Shell's oil production outlook and portfolio will be
provided with fourth quarter earnings.

-- Majority of Midland-based Permian employees and many Houston-based
employees will be offered employment by ConocoPhillips with effect upon
closing in accordance with the terms and conditions of the transaction.

-- Since 2017, Shell's Permian operations have reduced green house gas and
methane intensity by 80% through investment in infrastructure and
technology.

-- Morgan Stanley & Co. LLC and Tudor, Pickering, Holt & Co. are serving as
Shell's financial advisors and Norton Rose Fulbright is serving as
Shell's legal advisor for the divestment.

-- Shell is one of America's leading energy companies with interests in 50
states employing more than 15,000 people. Shell's U.S. portfolio of
operated companies and interests consists of oil, natural gas,
petrochemicals, gasoline, lubricants, and other refined products along
with renewables such as wind, solar, and mobility options like electric
vehicle charging and hydrogen. In the U.S. Shell is also investing in an
integrated power business that will provide electricity to millions of
homes and businesses.

ENDS

[waldron] 20/9/2021 21:55

chiragmahe

20 Sep '21 - 21:41 - 18346 of 18348
0 1 0

[waldron] 20/9/2021 18:24

Nord Stream 2 Could Still End Up In "Investment Ruin"

By Irina Slav - Sep 20, 2021, 11:00 AM CDT


Nord Stream 2, the controversial pipeline, may yet flop, according to the co-leader of the European Greens, Reinhard Butikofer.

In an interview with German dpa, the co-chair of the Green Party in the European Parliament said there are still obstacles that Nord Stream 2 needs to clear before it is put into operation, and even after it clears them, the European Commission could still stop the project and turn it into an "investment ruin."

Nord Stream 2 is set to expand the capacity of an existing pipeline under the Baltic Sea to Germany twofold, to 110 billion cubic meters annually. It has exacerbated bilateral problems between Russia and the EU because its route bypasses Ukraine, which relies on Russian gas transit fees for much of its budget revenues.

At the same time, there is a concern that more Russian gas coming into Europe will make it more vulnerable to Russian political pressure.

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Be that as it may, much of Europe is currently finding itself in dire need of natural gas amid lower than normal inventories and strongly rising demand that has led to a surge in gas prices.

"The shout of triumph with which the Russian side is celebrating the completion of the Nord Stream 2 pipeline is premature," Butikofer told dpa. He then went on to list three challenges still remaining for Gazprom.

First, it needs to unbundle its gas production operations from its gas infrastructure operations. The unbundling rule aims to prevent gas monopolies. Second, Gazprom must give third parties the right to feed gas into the pipeline, which it has not yet done. Third and last, the Nord Stream 2 pipeline needs to receive the go-ahead from the German authorities, which is also pending.

Yet even if the German authorities grant Gazprom and its Nord Stream partners a permit for the pipeline, the European Commission can cancel it if it finds the project violates European energy law, the EP official explained.

By Irina Slav for Oilprice.com

[ariane] 20/9/2021 15:51

RDSA DEMAND MAINLY IN AMSTERDAM




Less so in uk due to divi take advantage of RDSB




EXPECTING A TICK UP IN BOTH A and B Shares during later part of week as holders use divi cash to
top their holdings at these low prices

I believe the ESG impact has been overdone and has run out of steam or gas

[makinbuks] 20/9/2021 15:10

"RDS.A is an impressive value stock right now" and several brokers have valuations at £20 or higher based on historic valuations. What they don't take into account is that there is no demand for the shares. This is utterly illogical but they find themselves on the wrong side of ESG obsessed fund managers

[waldron] 20/9/2021 09:50

German Producer Prices Rise at Fastest Pace in More Than 45 Years

20 September 2021 - 10:26AM

Dow Jones News



By Maria Martinez

[waldron] 20/9/2021 08:31

Divi pay date September 20, 2021

[waldron] 13/9/2021 20:03

Are Investors Undervaluing Shell Oil (RDS.A) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
By Zacks Equity Research September 13, 2021
You're reading Entrepreneur United States, an international franchise of Entrepreneur Media.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
- Zacks

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Shell Oil (RDS.A). RDS.A is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.21, while its industry has an average P/E of 8.83. Over the past year, RDS.A's Forward P/E has been as high as 15.91 and as low as 7.05, with a median of 10.59.

Another notable valuation metric for RDS.A is its P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.94. Over the past 12 months, RDS.A's P/B has been as high as 1.09 and as low as 0.56, with a median of 0.91.

Finally, investors should note that RDS.A has a P/CF ratio of 4.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RDS.A's current P/CF looks attractive when compared to its industry's average P/CF of 6.06. Over the past year, RDS.A's P/CF has been as high as 5.61 and as low as 2.50, with a median of 4.30.

These are just a handful of the figures considered in Shell Oil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RDS.A is an impressive value stock right now.

[grupo guitarlumber] 13/9/2021 16:32

Inside Shell's Push to Restart Oil Platforms After Hurricane Ida


Nearly 50% of U.S. offshore oil production in the Gulf of Mexico remained offline two weeks after Ida. Restoring output has been painstaking.

[waldron] 10/9/2021 07:05

BUYWELL3


Rather than just posting a chart, would it not be more helpful to indicate whether you
consider it a trend up or down signal

I am certainly hoping for a retrapment of some of this weeks losses during the day


chuckle and cheers


take care