Shell Share Discussion Threads

[grupo guitarlumber] 13/3/2017 12:09

Royal Dutch Shell (RDSB) has taken another significant step to hitting its $30bn disposal target, with the sale of its stakes in the Athabasca and Peace River oil sands projects in Canada, together with a number of undeveloped leases in Alberta. The sale, for which Shell will be compensated in cash and shares totalling $8.5bn, is being made to Canadian Natural Resources, with whom Shell will has separately acquired Marathon Oil’s Canadian subsidiary for $1.25bn. The news would have no doubt been better received by the market, had oil prices not dived over the last two days on inventory build-ups. Our buy call is under review.


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[grupo guitarlumber] 13/3/2017 12:03

By StockMarketWire | Mon, 13th March 2017 - 10:00

RBC Capital Markets today reaffirms its outperform investment rating on Royal Dutch Shell (LON:RDSB) and raised its price target to 2600p (from 2500p).

[shaggies_view] 13/3/2017 08:38

Huge short positions in crude being built....

hxxps://www.mcoscillator.com/learning_center/weekly_chart/huge_imbalance_in_crude_oil_positions/

Shaggy

[grupo] 12/3/2017 10:21

Shell on Friday cancelled an LNG project in Prince Rupert it acquired when it purchased the BG Group in 2015.

When Shell acquired the BG Group for $70 billion there were already questions of whether the Prince Rupert project would remain, as Shell had an existing LNG project in development in nearby Kitimat in northwest B.C.

“Acquired as part of the Shell and BG Group combination in 2016, the Prince Rupert LNG project has been part of a global portfolio review of combined assets, which resulted in the decision to discontinue further development,” Shell subsidiary BG International Ltd. said in a written statement.

The Prince Rupert office will remain open through May 2017, said the company.

Much touted by the B.C. Liberal government, a new export liquefied natural gas export industry has failed to materialize in the province.

Mega-projects in northwest B.C. led by Shell, Chevron and Malaysian state-controlled Petronas have been stalled and analysts say that B.C. may have missed the window to capitalize on high Asian prices needed to make the project profitable.

LNG projects in B.C. have been hampered by reduced global demand, competition from new entrants such as the U.S., and the need for energy companies to reduce capital spending after oil prices plummeted in 2015.

[grupo] 12/3/2017 08:50

Enterprises, a 50/50 refining and marketing joint venture.

A balancing payment of $2.2 billion has been agreed between the parties, subject to adjustments including for working capital, Shell said. This value will be satisfied by a combination of SRI assuming more than its 50% share of Motiva’s net debt on completion and a cash payment for the balance. As at December 31, 2016, Motiva’s total net debt was $3.2 billion, of which Shell will assume $0.1 billion, resulting in a deduction to the cash portion of the balancing payment of $1.5 billion. As a result of the transaction no material effect is expected on gearing reported on the Shell balance sheet.

Subject to regulatory approval, the transaction is expected to close in the second quarter of 2017.

[steve73] 11/3/2017 02:13

A nice 4% boost compared to the last payment for us beleaguered UK holders..!

[ariane] 10/3/2017 18:33

THE HAGUE, The Netherlands, March 10, 2017 /PRNewswire/ --

The Board of Royal Dutch Shell plc ("RDS") (NYSE: RDS.A) (NYSE: RDS.B) today announced the pounds sterling and euro equivalent dividend payments in respect of the fourth quarter 2016 interim dividend, which was announced on February 2, 2017 at US$0.47 per A ordinary share ("A Share") and B ordinary share ("B Share").

Dividends on A Shares will be paid, by default, in euro at the rate of €0.4420 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by March 3, 2017 will be entitled to a dividend of 38.64p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 38.64p per B Share. Holders of B Shares who have validly submitted euro currency elections by March 3, 2017 will be entitled to a dividend of €0.4420 per B Share.

This dividend will be payable on March 27, 2017 to those members whose names were on the Register of Members on February 17, 2017.

[eithin] 10/3/2017 17:09

There we go 38.64p...

[eithin] 10/3/2017 14:56

Is the $/£ divi exchange rate out yet ?

[the grumpy old men] 09/3/2017 18:54

Why clever Shell will remain dividend king
By Lee Wild | Thu, 9th March 2017 - 17:19
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Why clever Shell will remain dividend king

Market commentators bang on about Royal Dutch Shell's (RDSB) dividend – "it's unsustainable," they cry, "it'll have to be cut." No it doesn't. The payout has not been cut since World War II and it ain't gonna happen on Ben van Beurden's watch. Trousering another $7.3 billion (£6 billion) from asset sales Thursday only underpins shareholder returns.

Shell has just agreed to sell all its oil sands interests in Canada to local giant Canadian Natural Resources for $8.5 billion - $5.4 billion in cash plus $3.1 billion of Canadian Natural shares.

That includes the sale of its 60% stake in the Athabasca oil sands project. However, the pair has also teamed up to buy Marathon Oil Canada Corp for $1.25 billion in cash each. For that they'll go halves on Marathon's 20% stake in Athabasca.

Both deals are tipped to complete during the middle of 2017.

"This announcement is a significant step in re-shaping Shell's portfolio in line with our long-term strategy," said chief executive van Beurden, who paid £35 billion for LNG specialist BG Group last year.

"We are strengthening Shell's world-class investment case by focusing on free cash flow and higher returns on capital, and prioritising businesses where we have global scale and a competitive advantage such as integrated gas and deep water.

"The proceeds will accelerate free cash flow and reduce gearing and make a meaningful contribution to Shell's $30 billion divestment programme [by 2018]."

chart1

This is the second piece of good news for Shell in recent days, having also announced that Saudi Aramco will hand over $2.2 billion including debt to take control of their Motiva Enterprises US refining partnership.

Clearly, the stabilisation of oil prices is a great help for Shell. Brent crude has bounced back from last year's $27 low and traded sideways since topping $58 a barrel two months ago.

As UBS analyst Jon Rigby said this week, achieving that $30 billion target will make Shell "a simpler and easy to manage group with prospective benefits".

"As the balance sheet de-levers the important restart of a full cash dividend becomes increasingly likely, as lower debt/secure credit metrics are a pre-condition."

True, fourth-quarter profits announced last month missed forecasts, mainly due to lower trading and refining margins and higher taxation. For the full-year they slumped by two-thirds.

But cashflow from operations of $9.17 billion was far better than anticipated and free cash flow more than covered Shell's cash dividend.

Obviously, the oil price is key for Shell, and it really needs around $60 for a degree of comfort, so the latest slide to $52 on strong supply data is unhelpful.

However, the company has shown it can sell assets in the current environment, and, as the dividend is paid in dollars, UK investors get a boost from sterling's rapid depreciation since last summer's Brexit vote.

If Shell does keep the dividend at $1.88 per share in 2017 – and it should – the sterling equivalent at current exchange rates is 155p. That gives a prospective yield of 7.1%. Even if things go wrong, the oil price plunges and Shell halves the payout, it would still not be a disaster for income seekers.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

[the grumpy old men] 09/3/2017 17:54

March 9, 2017, 12:29 P.M. ET

Marathon, Shell & Canadian Natural: Everyone’s a Winner! Well, Almost Everyone.
By Ben Levisohn

Sometimes a deal is so good, everyone gains. Or almost everyone. That’s the case with the deal announced by Marathon Oil (MRO), Canadian Natural Resources (CNQ), and Royal Dutch Shell (RDS.A).

Getty Images

It’s a complicated deal, one that I’ll let Cowen’s Sam Margolin and team explain:

Under the first agreement, RDS will sell its entire 60% interest in Athabasca Oil Sands Project, its 100% interest in the Peace River Complex in-situ assets which includes Carmom Creek and a number of other oil sands leases in Canada. As the buyer, Canadian Natural will pay consideration of $8.5B through $5.4B cash, $3.1B shares.

Under a separate agreement, RDS and CNQ will jointly acquire MRO Canada operations including 20% stake in the Athabasca project for $1.25B each in cash. The total net consideration from both transactions to RDS is approximately $7.25B ($4.15B cash, $3.1B stock). We note, RDS net implied sales price of 17.4x operating cash flow was higher than MRO sales price of 15x, albeit a larger stake and partial stock consideration…

We view the transaction positively as it renders a material deleveraging contribution and puts [RDS] ahead of schedule to realize its large $30B divestment program. Incremental sales should provide upside as proceeds reduce elevated leverage ratios.

RBC’s Scott Hanold warns investors not to overlook Marathon’s purchase of acres in the Permian basin:

Marathon Oil (MRO) announced the acquisition of 70,000 net surface acres in the Permian Basin, including 51,500 net acres in northern Delaware Basin, from BC Operating (private) for $1.1 billion. Separately, the company announced the divestiture of its non-operated interest in the Canadian Oil Sands for $2.5 billion. Proceeds from the divestiture will be used to fund resource capture, development capital expenditures, debt reduction, and general corporate purposes.

Shares of Marathon Oil have gained 4% to $15.47 at 12:18 p.m. today, while Canadian Natural Resources has climbed 6.1% to $30.99, and Royal Dutch Shell is off 0.5% at $50.82.

[maywillow] 09/3/2017 08:42

TOP NEWS: Shell Sells Off Canadian Oil Sands For USD7.25 Billion
Thu, 9th Mar 2017 08:11


LONDON (Alliance News) - Royal Dutch Shell PLC unveiled a huge disposal on Thursday as it said it has agreed to sell off all of its undeveloped oil sands assets in Canada while reducing its stake in the Athabasca project in a deal worth a net total to the company of USD7.25 billion.

Shell 'A' shares were down 1.2% at 2,101.00 pence per share on Thursday while 'B' shares were down 1.1% at 2,201.00 pence.

Shell said it will reduce its stake in Athabasca oil sands project, also in Canada, to 10% from the current 60%, but said it will remain as the operator of the project's Scotford upgrader and Quest carbon capture and storage project.

Under the first agreement, Shell will sell all of its 60% stake in Athabasca and all of its 100% interest in the Peace River complex, including Carmon Creek, and a number of undeveloped oil sands in the Alberta region. That will be sold to a subsidiary of Canadian Natural Resources Ltd.

Shell will be paid USD8.50 billion in return, comprised of USD5.40 billion in cash and 98 million shares in Canadian Natural, worth a total of USD3.10 billion, Shell said.

Under a second, correlated deal, Shell and Canadian Natural will then jointly acquire and equally own Marathon Oil Canada Corp, which currently holds a 20% stake in Athabasca, from an affiliate of Marathon Oil Corp for USD2.50 billion, with Shell and Canadian Natural both contributing USD1.25 billion each.

Shell said the net consideration for the company is USD7.25 billion.

"This announcement is a significant step in re-shaping Shell's portfolio in line with our long-term

strategy. We are strengthening Shell's world-class investment case by focusing on free cash flow and higher returns on capital, and prioritising businesses where we have global scale and a competitive advantage such as integrated gas and deep water," said Chief Executive Ben van Beurden.

"The proceeds will accelerate free cash flow and reduce gearing and make a meaningful contribution to Shell's USD30.00 billion divestment programme," he added.

By Joshua Warner; [e-mail]; @JoshAlliance

[fjgooner] 08/3/2017 01:12

Budget 2017: Chancellor to outline North Sea help

The chancellor is to use his budget to outline plans to help the North sea oil and gas industry, the Treasury has confirmed.

Philip Hammond will investigate the use of tax incentives to make it easier for operators to sell oil and gas fields, helping to keep them productive for longer.

A panel of experts will be set up to examine the issue.

A discussion paper on how to help the industry will also be published.

The Treasury said the moves would further help a vital industry that meets around 50% of the UK's primary energy needs.

It said the measures would build on "unprecedented support already provided to the oil and gas sector through £2.3bn packages in the last three years".

Industry body Oil and Gas UK has already called for more to be done to "facilitate the transfer of assets" to stimulate additional investment.

In its Business Outlook report published on Tuesday, Oil and Gas UK said it was "continuing to ask the Treasury to revise the tax treatment of decommissioning liability in support of this".

The report warned of a major drop-off in production without additional capital investment, but said there were some signs of optimism with confidence "slowly returning to the basin" despite the global slump in oil prices.

'Finally listened'

Derek Mackay, the Scottish government's finance secretary, had also written to the chancellor calling for "action to improve decommissioning tax relief, ensuring that the right assets are in the right hands".

Responding to the Treasury announcement, Mr Mackay said it was "encouraging that the UK government has finally listened to the Scottish government about the failings of the decommissioning tax regime".

He added: "This is an area where we have repeatedly called for reform and which the UK government have been slow to react, therefore it is important that this group comes to a swift conclusion and is not simply another talking shop."

Mr Mackay also called on the chancellor to offer "much needed financial relief" for households and public services.

He said: "The UK government plan for an additional £3.5bn of spending cuts in 2019-20, at precisely the point when the UK's departure from the EU could occur is disastrous. I say clearly to the chancellor - this is the wrong time for austerity".

[la forge] 07/3/2017 14:31

Pounds sterling and euro equivalents March 10, 2017
announcement date

Payment date March 27, 2017