Shell Share Discussion Threads

[partenope] 21/9/2021 18:48

"Of the $9.5 billion Shell will receive from Monday’s sale of the Permian, $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 $7 billion payout will be in addition to the company’s prior pledge to distribute 20% to 30% of cash flow from operations to investors, Shell said in a statement."



Wael Sawan is not a board member so unsure if his words should be taken as final. My feeling is that half of the cash should be passed as a special div and the other half used for buyback, with the $2.5b still used for debt reduction. given the vast amount already set aside for buybacks next year i would have thought that was equitable. no doubt large share holders will be canvassed to learn their preferences.

[lippy4] 21/9/2021 18:28

give us the cash not more buy backs...

[xxxxxy] 21/9/2021 18:20

This is going to concentrate minds about the stupidly of the Woke Green agenda.Heat or Eat.Death by hypothermia.Kowtowing to Bonkers Woke NonScience will bring poverty and death maybe on a bigger scale than Covid in UK.A thing to be proud of.

[xxxxxy] 21/9/2021 18:17

It is sobering to remember that UK gas consumption is currently running at just 155 million cubic meters per day in this mild late-summer season (ICIS data). The average winter peak is 385 mcm/d. The stress test has hardly begun. A one gigawatt nuclear reactor in Scotland is due to close at the end of the year.The UK faces this energy crisis with no national strategic storage of gas in reserve. It was not Mr Johnson who oversaw the closure of the main reserve at Rough off the Yorkshire coast but it was a Tory policy and it is he who will face the political consequences.This Government will have to explain why Britain's gas storage capacity was slashed to 1.7pc of annual demand when the global norm is a safety buffer of 20pc, and why it has subcontracted the task to countries in Continental Europe, now facing their own supply squeeze..... Daily Telegraph

[sarkasm] 21/9/2021 17:02

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.

[togglebrush] 21/9/2021 15:33

Probable Special Dividend
'
The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.
'
My Estimate is $7 billion cash between 7.801,423,335 shares is roughly 65p each
'
Expect more details with Q3 dividend end of this month ;
paid before end of March 2022 ???
E&OE

[supermarky] 21/9/2021 13:17

is this the moment shell breaks 1500 ?

[supermarky] 21/9/2021 13:16

what a negative sod you are. you'd rather choke on your cornflakes than say anything positive about the UK

[sarkasm] 21/9/2021 13:11

Royal Dutch Shell A
1,510.2 +5.11%



Royal Dutch Shell B
1,501.8 +4.98%


Looking good BillyRay

[planit2] 21/9/2021 12:24

Perhaps the shock to the S&P500 yesterday plus the oil supply shortage and this example of the underlying value of assets will push a rerate of the stock. Should be £18+

US opening strong could push this through 1500p and then good(drop) inventory figures today/tomorrow could give further momentum.

[partenope] 21/9/2021 12:01

hopefully go north of £15 today...:))

[partenope] 21/9/2021 12:00

shares up 67p on the day, which is the same as the share price div as per my calc above. looks like the market is expecting this cash returned as a dividend rather than buyback.

[xxxxxy] 21/9/2021 11:47

Tom Harwood: If you want clean energy, you can't afford to not back shale and nuclear?Tom Harwood GB News'The wind doesn't always blow and the sun doesn't always shine'?Tom HarwoodPOLITICAL CORRESPONDENTPUBLISHED Tuesday 21 September 2021 - 10:19Green activists have shot themselves in the foot.As the UK stares down the barrel of an energy crisis this winter, we are desperately looking to see who we can purchase power from overseas.Having to fall back on foreign imports of gas and other CO2 emitting energy sources is not green.Yet it is the reality we are being faced with due to those who have made the perfect the enemy of the good.The UK sits on a wealth of shale gas - not 100% clean, but a hell of a lot cleaner than other energy sources.Instigating the shale revolution - under President Obama no less - in the United States ensured that country accidentally met its Paris commitments despite Trump pulling out from the treaty.Shale has the potential to lessen - yes not eliminate, lessen - CO2 emissions in the UK, all while keeping the lights on. Those who campaigned against it will have much to answer for over the next decade.It is a vital transition fuel. Not something we should use forever, but something that can help out now.By campaigning against it, we have been lumped with potentially the worst of all worlds. Importing dirtier energy from overseas, with higher prices to boot.Looking at our energy mix in the next decades is a bleak picture. Energy crises will become more and more common as energy sources become less and less reliable.Not all low carbon energy sources are created equal.The wind doesn't always blow and the sun doesn't always shine.It's no coincidence that the countries which both use a significant amount of energy, but also have unusually low emissions use a disproportionate mix of hydroelectric, and nuclear power.Yes, nuclear power - that overwhelmingly safe, powerful, and crucially reliable source of energy is absolutely vital to our energy mix if we are to have any hope of even nearing net zero.Those who oppose it are flying in the face of scientific consensus.Germany's emissions started to climb again after in the face of loony pressure from its green party the government decommissioned its power stations.In this country the Scottish government, madly, has decreed no new nuclear stations will be built in Scotland.The UK currently has just 13 nuclear reactors, generating around 20% of our electricity. Almost half this capacity will retire by 2025.Yes some new capacity is to be built but nothing like enough.The conclusion is clear. If you want clean, green energy, you can't afford to not back shale and nuclear..... GB News

[kipper999] 21/9/2021 10:51

Porsche1945.....
In the words of the great Lord Sugar
My finger points to you....you're FIR.........FILTERED

[porsche1945] 21/9/2021 10:39

Shell and BP should hold UK government’ feet to the fire over energy, UK is fxxked, brexit has damaged everything cant even find truck drivers, the constant tedious “ green agenda “ demonising producers, there are real problems going to hit this winter, what a pathetic farce the tories have been since 2010, the big energy companies now in the driving seat, bleed the U.K. for serious profit especially on LNG and hopefully this dogsxxt share price can scale 25 quid plus again.

[partenope] 21/9/2021 09:03

i think there are 7.78b shares outstanding. $7b/7.78b = 89.97c per rdsa and rdsb share or 65.75p per share.

[adg] 21/9/2021 08:58

will there be a special divi?

[the white house] 21/9/2021 08:19

Multiple whammy, high oil, high gas, decent sale for Permian asset, reduced debt, special divvi, standard divvi increase, buy backs and oppo to sweep up some minnow power providers going bust.

[xxxxxy] 21/9/2021 08:12

As power prices spike and families brace for higher bills, energy experts are poring anxiously over weather forecasts for any hints of relief from the crisis.Wind farms deliver almost a fifth of Britain's electricity, but a freak anticyclone has hovered over Western Europe since mid-August, bringing calmer weather and low wind speeds, sapping power production. According to energy consultant Cornwall Insight, wind typically accounts for 18pc of the nation's power mix, a share which has dropped to just 2pc in the past month."All other things being equal, a mild start to the winter with some windy weather would be peachy," according to its lead analyst Tim Dixon."Right now, eyes are going to be turning to medium-term weather forecasts for autumn and the start of winter. That will have a big role to play in gas demand."But not all of the country's energy difficulties will be gusted away even if the winds begin to blow again.Industry critics argue that the drive for greener energy has driven up costs, while previous decisions have exacerbated the dependence on imports and left Britain more vulnerable to geopolitical power plays as Russia's Vladimir Putin starves Europe of gas. ... Russell Lynch.... Full article Daily Telegraph

[waldron] 21/9/2021 07:24

its in european press and on a RNS

[drectly] 21/9/2021 07:17

ept 20 - Royal Dutch Shell RDSa.L said on
Monday it is selling its assets in the largest U.S. oil field to
ConocoPhillips COP.N for $9.5 billion in cash.


The deal would expand Conoco's footprint in the Permian
Basin, the heart of the U.S. shale industry. For Shell, it is a
further step away from its traditional focus on oil and gas
toward greater reliance on renewable energy production.
"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," Shell said in a statement.

not sure why there is not a UK press release?