Shell Share Discussion Threads

[grupo guitarlumber] 24/4/2019 14:08

Oil & Gas Stock Roundup: Chevron's $50B Anadarko Buy, Shell's Asset Sale & More
April 16, 2019, 02:03:00 PM EDT By Nilanjan Choudhury, Zacks.com

Shutterstock photo

It was a week where oil prices settled at their highest since October, while natural gas futures remained steady.

On the news front, oil major Chevron Corporation CVX agreed to buy Texas-based upstream company, Anadarko Petroleum Corporation APC for roughly$50 billion. Meanwhile, another supermajor Royal Dutch Shell plc RDS.A agreed to sell 22.45% interest in Caesar Tonga oil field in the Gulf of Mexico for $965 million.

Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures rose 1.3% to close at $63.89 per barrel, natural gas prices held almost unchanged for the week to finish at $2.66 per million Btu (MMBtu). (See the last 'Oil & Gas Stock Roundup' here: Concho Midstream Monetization, Noble Energy Project Approval )

The U.S. crude benchmark rallied to a fresh five-month high, underpinned mainly by production cuts from the OPEC-led group of exporters, and drop in supply from Venezuela and Iran. The so-called OPEC+ deal (an alliance of OPEC, Russia and other non-member countries) is withholding output by around 1.2 million barrels per day until the end of June. U.S. sanctions against Venezuela and Iran also continue to tighten the commodity's fundamentals.

Further to this, signs of stable demand (contrary to previous expectations of slowing consumption) and escalating geopolitical risk in Libya - a major supplier of oil to Europe - boosted bullish sentiment in the energy market.

Meanwhile, natural gas prices were little changed after the weekly inventory release showed a smaller-than-expected increase in supplies. However, the injection was higher than the five-year average.

[fjgooner] 24/4/2019 13:58

So true on Trump.

But as I predicted last autumn and in the article above, OPEC+ aren't going to be fooled this time around and will only adjust production upwards in response to actual supply tightening after waivers are meaningfully withdrawn.

That should prevent the drop back in market prices as experienced in 18Q4, so maintaining a $70 (+/- $5) range for FY2019, which will do very nicely for Shell indeed.

Current Brent pricing data:
2019Q2 to date: $71.35
2019 to date: $65.43

[maywillow] 24/4/2019 13:14

Thanks for that fjg

in my opinion i feel its a general malaise affecting not only shell but other
major companies depending whether the sector is in or out of favour


i doubt whether Trumps spanner the works helps stability

MANY SHARES SEEM TO BE UNDERVALUED

[fjgooner] 24/4/2019 12:46

I feel that stewart64 is exactly right on this point and that RDSB at its current price of £25.20 seems completely disconnected from both the recovery in the oil market and from its own record of progress over the last year.

Reviewing my notes from this time last year we had the following closing RDSB sharepice - Brent - WTI - GBP/USD profile:
24/04/18 26.075 @ 74.89 68.72 1.3968

Please also note that much less favourable 1.3968 GBP/USD compared to today's 1.294.

A few days later, even after the stock went ex-Div for 2018Q1:
11/05/18 27.105 @ 77.34 71.12 1.3545

And the rally in price continued for another 10 days to:
21/05/18 28.41 @ 78.84 71.98 1.342

In the year that's followed we have seen Shell successfully prove its strategy by achieving an increase in cash flow from operating activities to $53 billion for FY2018.

And we have also seen a full year of buybacks, which by itself notionally increases share value (by my calculations) by about 3.2%.

So, all other things being equal, a share price of around £29 seems reasonable at this time.

With further operational improvements, a few more sets of strong results and further buybacks adding to share values, my target price of £32 still seems cheap.

[the white house] 24/4/2019 12:04

Fighting over Anardarko, makes Shell look cheap, maybe the Saudis should launch a reverse takeover, gain assets and expertise and save IPO admin costs...

[maywillow] 24/4/2019 11:38

andyadvfn1
24 Apr '19 - 11:24 - 7150 of 7150
0 0 0


Shell in talks with BP



BP said to be planning sale of North Sea Shearwater stake
by Bloomberg
08/01/2019, 7:03 am

Shell's Shearwater platform
Shearwater lies around 140miles east of Aberdeen
Sign up to our Daily newsletter
08/01/2019

BP is considering selling its stake in the Shearwater assets in the North Sea as it focuses on new projects in the area and expands in U.S. shale, according to people familiar with the matter.

[andyadvfn1] 24/4/2019 11:24

https://www.energyvoice.com/oilandgas/north-sea/189776/bp-said-to-be-planning-sale-of-north-sea-shearwater-stake/Shell in talks with BP

[stewart64] 24/4/2019 10:08

Bit of a boiling frog on the disconnect between RDSB share price and the hotting up price of oil. Market accepts the new higher normal and the Oil Majors go nowhere. Remember rdsb was pushing £25 when Brent was back at $62 in February.

I'm guessing climate activism might be a contributing factor. But the new profitable leaner Shell, proven by annuals, also now fading in memories.

[waldron] 24/4/2019 07:02

European markets seen slightly lower as investors monitor earnings
Published 7 min ago
Sam Meredith
@smeredith19




Key Points

The FTSE 100 is seen 20 points lower at 7,503, the CAC is expected to open down around 11 points at 5,580, while the DAX is poised to start 32 points lower at 12,203, according to IG.
Credit Suisse reported an increase in first-quarter net profit on Wednesday, beating analyst expectations.
Investors are also likely to closely monitor the latest quarterly figures from Heineken, Michelin and Akzo Nobel Wednesday morning.

European stocks are set to open slightly lower Wednesday morning, as market participants monitor the latest flurry of corporate results.

[waldron] 23/4/2019 17:36

FTSE 100
7,523.07 +0.85%
Dow Jones
26,687.83 +0.67%
CAC 40
5,591.69 +0.20%


Brent Crude Oil NYMEX 74.38 +0.46%
Gasoline NYMEX 2.07 -0.12%
Natural Gas NYMEX 2.50 -2.19%


(WTI) - 23/04 18:14:33
66.34 USD +0.85%


Eni
15.798 +2.37%


Total
51.22 +1.83%

Engie
13.265 -0.52%

Orange
14.485 -0.96%



BP
582.5 +2.61%


Shell A
2,521 +2.21%


Shell B
2,541.5 +2.31%

[crossing_the_rubicon] 23/4/2019 13:40

Goldman reiterates Q2 crude oil view after U.S. ends waivers

Goldman Sachs doesn't see the U.S.'s decision to end waivers on sanctions for
countries buying oil from Iran to have a big impact on oil prices this quarter.

"While we acknowledge the near-term upside price risks, we reiterate our fundamentally derived Brent price trading range of $70-75 per barrel for the second quarter of 2019," according to a Goldman research note.

[grupo] 23/4/2019 10:41

skinny thanks

but how about a comment as to direction perhaps

[crossing_the_rubicon] 23/4/2019 09:38

BARCLAYS: AT LEAST $5 UPSIDE FOR BRENT IF IRAN EXPORTS NO OIL
The global economy can't take another 25bps rate hike, but $80 Brent is no problem

[crossing_the_rubicon] 23/4/2019 09:37

BARCLAYS: AT LEAST $5 UPSIDE FOR BRENT IF IRAN EXPORTS NO OIL
The global economy can't take another 25bps rate hike, but $80 Brent is no problem

[waldron] 22/4/2019 18:07

Brent Crude Oil NYMEX 74.32 +3.27%
Gasoline NYMEX 2.09 +2.78%
Natural Gas NYMEX 2.52 +1.33%


(WTI) - 22/04 18:52:36
65.79 USD +2.05%

[grupo] 22/4/2019 17:30

Exxon Mobil
82.9764 +2.28%

Chevron
121.91 +1.71%

Looking good for tomorrow

[grupo] 22/4/2019 17:09

New York
RDS.A $65.26 (1.64%)
RDS.B $66.72 (1.69%)