Shell Share Discussion Threads

[waldron] 15/5/2019 07:13

Europe markets set to edge higher as recovery rally continues
Published 15 min ago
Elliot Smith
@ElliotSmithCNBC




Key Points

Stocks rebounded worldwide Tuesday following a market sell-off amid escalating trade tensions between the U.S. and China.
President Donald Trump softened his tone on the trade war Tuesday, referring to it as a “little squabble” and insisting talks had not collapsed.

[steve73] 15/5/2019 03:07

There's no point buying back the B shares... they're more expensive to buy, and they cost Shell the same to pay each dividend.

[nicebut] 14/5/2019 22:36

Do they ever buy back the `B` shares?

[waldron] 14/5/2019 17:26

FTSE 100
7,241.6 +1.09%
Dow Jones
25,652.93 +1.29%
CAC 40
5,341.35 +1.50%


Brent Crude Oil NYMEX 71.43 +1.71%
Gasoline NYMEX 1.98 +1.07%
Natural Gas NYMEX 2.65 +1.07%

(WTI) - 14/05 18:03:06
62.03 USD +1.79%



Total
47.4 +1.14%

Engie
13.44 +1.86%

Orange
13.66 +1.04%

Eni
14.604 +1.26%


BP
534.6 +1.58%

Vodafone
126.84 -3.75%

Shell A
2,490.5 +1.76%


Shell B
2,497.5 +1.61%

so we have crept into the 2475 to 2575p BOX again

waiting for ex divi to confirm

[waldron] 14/5/2019 15:44

14 May 2019
News
Equinor to buy 22.45% stake in Caesar Tonga field from Shell Offshore
Share

Equinor has agreed to buy an additional 22.45% stake in the Caesar Tonga oil field from Shell Offshore for $965m in cash.

The purchase comes after Equinor exercised its preferential rights to increase its share in the deepwater US Gulf of Mexico asset.

With the latest acquisition, Equinor’s share in the field increases from 23.55% to 46.00%, while operator Anadarko will have 33.75% interest and Chevron 20.25%.

One of the largest deepwater resources in the US Gulf of Mexico, the Caesar Tonga field is situated around 290km south-southwest of New Orleans in the Green Canyon area. Equinor’s share of production from the field currently stands at 18,600 barrels of oil equivalent.
“Deepwater Gulf of Mexico forms an important part of Equinor’s portfolio.”

Equinor development and production international senior vice president for North America Offshore Christopher Golden said: “Deepwater Gulf of Mexico forms an important part of Equinor’s portfolio. This deal will strengthen our position in this prolific basin and build on the recent discovery in the Blacktip well.

“Later this year we will be drilling the Equinor-operated Monument prospect, which has the potential to further develop our position in the Gulf of Mexico.

“We are pleased to increase our presence in the US, one of our core areas. This is an asset we understand well, and our larger interest will deliver significant additional free cash flow from day one.”

In April 2019, Shell signed an agreement to sell the stake to Delek Group for the same consideration. This transaction was subject to “the right of first refusal held by the three other co-owners in the field”.

Equinor has been operating in the US Gulf of Mexico since 2005, owning stakes in eight producing fields and two under-development resources.

The completion of the acquisition is subject to customary closing conditions and approvals, with an effective date of 1 January 2019.

[spud] 14/5/2019 14:40

LONDON (Agefi-Dow Jones) - Royal Dutch Shell could pay up to half of its value to shareholders over the next few years, says Deutsche Bank. The bank notes its recommendation on the action B of the oil group to "keep" to "buy", with a target price increased to 2,700 pence, against 2,650 pence previously. According to Deutsche Bank, Shell could pay up to 50% of its current market capitalization of approximately $ 125 billion to its shareholders by 2025 in the form of dividends and share repurchases. "A 15% growth in dividend per share over the same period (around 3% per annum) seems like a realistic goal," adds Lucas Herrmann of Deutsche Bank. The title Shell earns 1.3%, at 2,490 pence.spud

[sarkasm] 14/5/2019 14:39

LONDON (Agefi-Dow Jones) - Royal Dutch Shell could pay up to half of its value to shareholders over the next few years, says Deutsche Bank. The bank notes its recommendation on the action B of the oil group to "HOLD" to "BUY", with a target price increased to 2,700 pence, against 2,650 pence previously. According to Deutsche Bank, Shell could pay up to 50% of its current market capitalization of approximately $ 125 billion to its shareholders by 2025 in the form of dividends and share repurchases. "A 15% growth in dividend per share over the same period (around 3% per annum) seems like a realistic goal," adds Lucas Herrmann of Deutsche Bank. The title Shell earns 1.3%, at 2,490 pence.


-Philip Waller, Dow Jones Newswires (French version Aurélie Henri) ed: VLV


Agefi-Dow Jones The financial newswire


(END) Dow Jones Newswires


May 14, 2019 07:37 ET (11:37 GMT)

[grupo] 14/5/2019 08:02

RDSB HSBC Buy from 2,730.00 to 2,740.00 Upgrades

RDSB Deutsche Bank Buy from 2,650.00 to 2,700.00 Upgrades





BP. HSBC Buy 650.00 - Reiterates

[waldron] 14/5/2019 07:22

Equinor to acquire Shell’s stake in Caesar Tonga oil field for $965m
By Compelo Staff Writer

Equinor will increase its stake in the producing Caesar Tonga oil field in the US Gulf of Mexico by 22.45% through a $965m all-cash deal with Shell Offshore.
Image: Equinor to increase its stake in Caesar Tonga oil field to 46.00%. Photo: courtesy of Ole Jørgen Bratland/Equinor ASA.

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By exercising its preferential rights as an existing stakeholder, the Norwegian oil and gas giant will increase its stake in the Caesar Tonga oil field to 46%.

The deal marks the exit of Shell, which agreed to sell its stake of 22.45% in the offshore oil field in April 2019 to Delek Group’s subsidiary Delek CT Investment, for the same price of $965m. Delek’s acquisition was subject to the right of first refusal held by the asset’s other co-owners among other things.

With Shell’s exit, the remaining stakeholders in the Caesar Tonga oil field will be Anadarko, the operator with 33.75% stake, Chevron with 20.25% and Equinor, the largest stakeholder.

Located 290km south-southwest of New Orleans in the Green Canyon area, the Caesar Tonga field is among the largest deepwater resources in the US Gulf of Mexico. Production from the oil field is tied back through subsea equipment to Anadarko’s Constitution SPAR floating production facility.

The Caesar Tonga oil field, which was brought into production in early 2012, is spread over the GC683, GC726, GC727 and GC770 blocks at water depths of around 4,900ft.

Equinor’s current share of production from the Caesar Tonga oil field is 18,600 boepd. The oil is drawn from the Tonga, Tonga West and Caesar fields that make up the Caesar Tonga development.

Equinor North America offshore development and production international senior vice president Christopher Golden said: “Deepwater Gulf of Mexico forms an important part of Equinor’s portfolio. This deal will strengthen our position in this prolific basin and build on the recent discovery in the Blacktip well.
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“Later this year we will be drilling the Equinor-operated Monument prospect, which has the potential to further develop our position in the Gulf of Mexico.”

The completion of the transaction will be subject to customary consents and approvals.

Equinor has been operating in the US Gulf of Mexico since 2005 and has exploration prospects and interests in eight producing fields and two in development stage.

[waldron] 13/5/2019 17:23

FTSE 100
7,163.68 -0.55%
Dow Jones
25,313.7 -2.42%
CAC 40
5,262.57 -1.22%

Brent Crude Oil NYMEX 70.15 -0.67%
Gasoline NYMEX 1.97 -0.76%
Natural Gas NYMEX 2.62 +0.00%

(WTI) - 13/05 18:01:12
61.16 USD -0.20%


Eni
14.422 +1.09%



Total
46.865 -0.01%

Engie
13.195 +0.57%

Orange
13.52 -1.53%


BP
526.3 +0.40%

Vodafone
131.78 -5.19%

Shell A
2,447.5 +0.87%


Shell B
2,458 +1.03%

[sarkasm] 13/5/2019 14:46

IN THE KNOW: Shell Well On Course To Keep Returning Cash - HBSC
Date : 13/05/2019 @ 14h40
Source : Alliance News
Valeur : Rds A (RDSA)
Cours : 2455.0 28.5 (1.17%) @ 14h30

[adrian j boris] 13/5/2019 14:18

Shell Midstream Partners L.P. (SHLX) said Monday that it has entered into an agreement to acquire Royal Dutch Shell's (RDSA) 25.97% equity interest in Explorer Pipeline Co. and 10.125% equity interest in Colonial Pipeline Co. for $800 million.

Shell Midstream said in a release that the acquisition will increase its interest in Explorer to 38.59% and in Colonial to 16.125%.

Shell Midstream said that the acquisition is expected to be immediately accretive to unitholders and anticipated to be funded with 75% debt through a credit facility.

The deal is expected to close in the second quarter.



Write to Chris Wack at [e-mail]



(END) Dow Jones Newswires

May 13, 2019 08:37 ET (12:37 GMT)

[la forge] 13/5/2019 11:16

13 May 2019
Royal Dutch Shell forecast to spend US$1.5bn in UK decommissioning through to 2025
Posted in Energy, Press Release

Royal Dutch Shell are estimated to have over US$3bn in total abandonment and decommissioning expenditure (ABEX) in producing UK oil and gas developments, stacking above fellow UK operators, says GlobalData, a leading data and analytics company.

The company’s latest research reveals the top five companies with the greatest ABEX exposure from producing fields in the UK are: Royal Dutch Shell (Shell), Apache Corp, Total SA, Exxon Mobil Corp and BP Plc.

Of the UK operators, Shell is set to have the largest ABEX liability, of just over US$3bn to abandon producing fields in the UK, and is set to spend as much as half of that value by 2025. This is driven mainly by the Brent oil field but also relates to expenditure in aging developments such as Pierce and Curlew.

Daniel Rogers, Upstream Oil & Gas Analyst at GlobalData, commented, “The total plug and abandonment expenditure alone for the Brent field could reach US$900m and spans from 2008 to 2020 with over 150 wells in total. The decision not to remove the Brent gravity based concrete structures weighing around 960,000 tons due to technical and safety concerns will come with significant cost savings; the decision, however, is being largely disputed by environmentalists and neighbouring countries.”

The two producing fields identified to carry the largest ABEX in the UK are the Brent and Forties oil developments. The combined ABEX for the two fields could reach some US$4bn in total, with Brent expected to cease production in 2020 and Forties not likely until 2030’s.

Daniel continued, “Despite the Forties Production System (FPS) pipeline not due for abandonment in the near future, the removal of the approximately 150,000 tons of platforms at the field could cost the participants some US$700m. This will weigh heavily on current operator Apache Corp and as a result places the company only behind Shell in terms of UK abandonment and decommissioning liabilities from producing assets.”

The study also reveals a significant growth in the number of UK asset retirement contracts issued since the industry down turn in 2014, but the number has remained relatively flat since 2016 after a sharp initial rise. Of those contracts, the majority have been Plug and Abandonment (P&A) work scopes, with near term forecast UK ABEX expected to be weighted towards P&A activities.

Daniel added, “We have seen a negative correlation between the number of asset retirement contracts awarded and the price of oil over the last five years. During lower oil prices, reduced profits from producing fields coupled with lower service costs provide a favourable environment for asset retirement activity. Given the recent stabilization of oil price and a push by the UK government to maximize economic recovery from existing assets, the outcome will likely lead to project abandonment delays and rejuvenated investment at legacy fields.”

[la forge] 13/5/2019 10:32

Giant gas project uncertain

Editorial Board

The Jakarta Post

Jakarta / Mon, May 13, 2019 / 08:48 am
Illustration of oil and gas industry. (Shutterstock/File)

Reuter’s report on Royal Dutch Shell’s plan to quit the US$15 billion Masela Block development, though flatly denied by the oil regulatory body and not yet confirmed by the giant energy company, only made the long-delayed giant gas project in the eastern region even more uncertain.

The sheer circulation of such speculation about Shell’s intention to sell its 35 percent equity in the project is quite a paradox. Since the giant energy group’s global business development plan has increasingly focused on gas development instead of oil, there should be a very big barrier to stop Shell from withdrawing from the project.

Even though Shell’s withdrawal might not entirely jeopardize the whole project because it is Japan’s Inpex that is the lead operator, the news story would adversely affect the market perception of the future of the project, notably the enthusiasm of potential lenders and long-term buyers.

The uncertainty about the project was set off by the government’s decision in early 2016 to move the gas project from a floating to onshore one that was entirely contrary to the recommendation of all consultants that made the feasibility study for the Inpex-Shell consortium.

The policy decision also painfully surprised the petroleum industry, because it was the first plan of development (POD) of oil contractors that saw direct intervention from the President.

The full authority of assessing and approving the PODs from oil and gas contractors usually rests with the Upstream Oil and Gas Regulatory Special Task Force and the energy and mineral resources minister. This is simply rational, because hydrocarbon resources have become increasingly complex, and their development has also become complicated with oil and gas projects becoming larger with more intricate supply chains.

Moving the project onshore was underpinned by political rather than commercial reasoning, contending that an onshore project would generate more multiplier effects for nearby islands through jobs, infrastructure and the petrochemical industry.

Certainly, the biggest damage will be the long delay of the completion of the project from its original schedule of 2024. Even now, three years after the decision, a detailed feasibility study on onshore liquefied natural gas has yet to be finalized. Then, negotiations for potential buyers and lenders may take another two to three years. The most optimistic estimate foresees the project to be on stream in 2027 or 2028 with an estimated output of 9.5 million tons per year.

This delay may make the project less attractive to international lenders because the International Gas Union has estimated that during the next 10 to 15 years there will be more than a dozen floating liquefied natural gas plants in Malaysia, the United States and Canada with a capacity of 50 million tons a year coming on stream.

Yet more detrimental to the country’s energy supply is the conclusion of a recent government analysis that Indonesia may experience a big gas shortage by 2026.

[la forge] 13/5/2019 09:54

proactiveinvestors

Shell finds favour, while analysts see fresh caution over BP’s oil spill pay-outs
12:27 02 May 2019
Overall there are positive for both of London's 'big oil' firms, though the outlook is seen to comprise somewhat different challenges.
oil and gas operations
Shell's first quarter beat expectations across most metrics

What did we learn from this week’s ‘big oil’ financial results? – It's that market sentiments are falling in favour with the ‘impressive217; Royal Dutch Shell plc (LON:RDSB) over the ‘good but not great’ performance of BP plc (LON:BP)

Whilst BP’s results, released Tuesday, were called ‘solid’ and ‘resilientR17; today’s figures from Shell beat expectations with the ‘clean’ CCS earnings number coming in at US$5.3bn versus market forecasts of US$4.54bn.

Shell shares rallied 59p or 2.4% to trade at 2,484p in Tuesday’s dealing.

Away from the financials though a Dutch court on Wednesday decided it had jurisdiction to hear a case brought by widows of Nigerian anti-oil activists who were executed by the Nigerian government in 1995.
READ: Shell boss Ben van Beurden boasts of “strong start” to 2019

Reacting to Thursday’s Shell results, analysts at UBS highlighted that the Anglo-Dutch beat expectations across all operating segments, whilst pitching a ‘buy’ recommendation with a 2,900p price target (some 16% above the current price of 2,488p).

Elsewhere, RBC analyst Biraj Borkhataria described “a strong set of numbers” and said that it confirms Shell is closer to reaching its 2020 free cash flow targets.

Borkhataria highlighted that in a stronger quarter the integrated gas business led the charge for Shell.

Going into the week there had already been a sense that Shell’s strong recent share price performance was leaving even its more bullish followers feeling somewhat fatigued.

This was reflected RBC’s somewhat tentative ‘downgradeR17; to a mere ‘sector perform’ view. Rather than seeing it Shell the stand-out oil major, in now retains a positive point of view but sees the company as part of the pack.

Specifically, RBC reckons a further US$30bn of share buy-backs might be needed, which would burden and restrict Shell’s ability to “high grade” its asset portfolio over time.

If RBC’s downgrade of Shell was tentative, it’s perspective on BP is now “incrementally cautious”.

Tuesday’s results statement showed a company with positive upstream and downstream operations, production was in-line with expectations, costs were lower, and an increase in the dividend was welcomed.
RBC says BP spill costs are 'creeping up'

Borkhataria nevertheless has reservations, around two points in particular. One is the tougher pricing around Canadian heavy crude and weaker refining margins, the analyst reckons there’s support through 2020 but beyond that the impacts could dent upside in the future.

Secondly, and perhaps more easy for lay investors to get to grips with, Borkhataria stated his surprise that charges related to the Macondo oil spill amounted to US$654mln during the first quarter.

In a note, the analyst looked back at past models of the pay-outs and determined they have been ‘creeping up’.

“Since 4Q16, BP's Macondo charges have been more negative than our forecasts in 11 of the last 12 quarters,” the analyst said.

“In total, since 4Q16, we estimated around $9.5bn in payments for Macondo, and BP has paid out $11.5bn.

“We think investors typically write these charges as ‘one-off’;; however, given the consistency of the negative surprises, we feel the need to be more prudent.”

RBC now anticipates some US$3bn of Macondo charges for 2019, up 50% from a prior estimate of US$2bn, and, the Canadian bank assumes US$2bn will be paid in both 2020 and 2021 rather than US$1.1bn each year.

In the wake of the results, RBC downgraded its BP target price to 615p from 625p though it retains a positive ‘outperform217; rating for the stock.

[scobak] 13/5/2019 09:23

last night CNBC reported Occidental corporate aircraft tracked flying to Amsterdam amid speculation of some sort of deal. RDS and Anadarko appear to have some crossover in the Permian basin. Still believed that Occidental have a funding issue with this deal.

[waldron] 13/5/2019 07:49

investomania


Why I think the Royal Dutch Shell Plc share price could beat the FTSE 100
I’m optimistic about the prospects for the Royal Dutch Shell Plc Class B (LON:RDSB) (RDSB.L) share price versus the FTSE 100 (INDEXFTSE:UKX)
May 13, 2019 Robert Stephens, CFA Shell (LON:RDSB)
Shell
Shell

While the price of oil has surged higher in 2019, the Royal Dutch Shell Plc Class B (LON:RDSB) (RDSB.L) share price has risen by only 2%. That’s a disappointing performance in my view at a time when Brent has risen by around 25%. The performance of the oil major has lagged the FTSE 100 (INDEXFTSE:UKX), which is up by around 8% since the start of the year.

In spite of its slow start to 2019, I think the Shell share price could offer improving performance in the long run. I wouldn’t be surprised if it is able to outperform the FTSE 100 over future years.
Favourable prospects

Although news of a US-China trade war has dominated headlines over the last week, I remain optimistic about the outlook for the world economy. This could produce improving performance from the oil and gas sector, which is highly dependent upon the world economy’s prospects.

In my view, there is also the potential for an imbalance between demand and supply of oil. Although on the demand front there could be weakness depending on how trade talks between the US and China progress, there may also be slowdown in supply growth. There are various major oil-producing nations, notably Saudi Arabia, which face geopolitical risks at the moment. Alongside the end of sanctions exemptions from Iran, this could lead to lower supply of oil over the medium term. This may help to support the oil price.
Progress

Shell’s recent updates have shown that it is making good progress in terms of improving its financial performance in my opinion. Its plans to reduce the size of its asset base could improve its efficiency, as well as boost its free cash flow. In turn, this could be used to strengthen the business through debt reduction, as well as support a higher dividend in future.

With regard to its dividend, the Shell share price currently has a yield of around 6%. Given that its payout ratio is around 60% at the moment, I feel that it could afford to pay a rising dividend over the medium term. A forecast EPS growth rate of 18.6% for the current year suggests to me that it may be able to pay a higher dividend without hurting its financial strength.
Valuation

Since the Shell share price has a P/E ratio of around 10 at the moment, I feel that the company could offer good value for money. Sure, there could be further uncertainty in the near term from the potential for a full-scale global trade war between the US and China. But with the prospect of lower supply, as well as the stock’s margin of safety and income potential, I think that it could outperform the FTSE 100 over the long run.

[waldron] 13/5/2019 07:41

Europe markets set to open slightly higher as investors monitor US-China trade developments
Published an hour ago
Matt Clinch
@mattclinch81
Elliot Smith
@ElliotSmithCNBC




Key Points

On Friday, Trade talks between U.S. and Chinese negotiators broke up without a deal, shortly after America ramped up its tariff rate to 25% on $200 billion worth of Chinese goods.
In an interview with Fox News on Sunday, White House Economic Advisor Larry Kudlow said President Donald Trump and Chinese President Xi Jinping are likely to meet at the upcoming June G-20 summit in Japan.

[waldron] 13/5/2019 07:36

Royal Dutch Shell: HSBC is moving from hold to buy with a target price from 2730 to 2740 GBp.

[the white house] 13/5/2019 06:59

2 monster crude tankers severely damaged in sabotage attack near UAE bound from Saudi to US