Yesterday, 7:58 AM
- Australia's antitrust regulator says it is delaying a decision on clearing Royal Dutch Shell's (RDS.A, RDS.B) $US70B takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY), signalling it has reservations about the potential impact on gas supply.
- The regulator was expected to announce a decision on the deal today, but in a notice on its website says the date had been pushed back to Sept. 17 to allow additional time to consider the proposal.
- The proposed merger has raised worries among industrial energy users along Australia's east coast that the availability and choice of gas supplies will be further restricted.
- Australia and China are the two regulatory hurdles yet to be cleared after the European Union’s top antitrust regulator approved the deal unconditionally yesterday.
Wed, Sep. 2, 9:04 AM
- Royal Dutch Shell's (RDS.A, RDS.B) proposed merger with BG Group (OTCPK:BRGXF, OTCQX:BRGYY) has received unconditional clearance from the European Commission.
- The European Union’s top antitrust regulator concluded after a brief investigation that the deal would not allow Shell to influence prices for oil and natural gas, and that the markets would remain competitive after the transaction.
- U.S. and Brazil antitrust authorities approved the deal in June; the deal still needs approval by China and Australia.
Tue, Sep. 1, 7:26 AM
- BG Group (OTCPK:BRGXF, OTCQX:BRGYY), which is being acquired by Royal Dutch Shell (RDS.A, RDS.B), has put up for sale its 22.2% stake in the huge Thai Bongkot offshore gas field valued at ~$1.2B, Reuters reports.
- The move would represent the first major asset sale by BG since Shell agreed to acquire the company in April.
- Thailand accounted for ~6% of BG's global gas production in 2014.
Tue, Aug. 25, 6:29 PM
- The global market selloff and plunging oil prices have increased fears that some of this year’s largest takeover deals are at risk of falling apart, including Royal Dutch Shell’s (RDS.A, RDS.B) ~$70B offer for BG Group (OTCPK:BRGXF, OTCQX:BRGYY), Financial Times reports.
- Over the past week, the gap between the agreed price of several takeovers and the market price of the target companies’ shares has widened, which usually is interpreted as a signal of declining confidence that the transaction will complete as planned.
- Bets on the outcome of Shell’s deal represented the biggest trades being made by so-called event-driven hedge funds in Europe, at least one broker tells FT.
- Another deal spread to reach its widest level this week was that between Halliburton’s (NYSE:HAL) $35B offer for Baker Hughes (NYSE:BHI) and the target group’s market value.
Tue, Aug. 18, 11:47 AM
- Having been "multi-year cautious" on Big Oil, Citigroup's Alastair Syme is getting more bullish, believing current valuations are giving very little chance to the restoration of the group's long-term profitability to long-run averages.
- He notes the sector price-to-book ratio of 1.2x is now below the Q1 2009 and Q4 1998 troughs, even with books marked to reflect world oil in the $50-$70 range.
- "This will be a long process, but the repair (cost-cutting, better capital allocation) has now started," says Syme, recommending investors at least get to benchmark weight in the group. His favored ways to play are ConocoPhillips (NYSE:COP), Statoil (NYSE:STO), Total (NYSE:TOT), and BG Group (OTCQX:BRGYY) as a cheaper way to get into Shell (NYSE:RDS.A).
- Notably not on the list are ExxonMobil (NYSE:XOM) thanks to its valuation premium and low growth (through the strong balance sheet is worth a look), and Chevron (NYSE:CVX) - "slow to adjust to a lower commodity world."
- Previously: BAML: Capitulation in emerging markets, commodities, and energy-related stocks (Aug. 18)
Fri, Jul. 31, 5:01 AM
- With forecast-beating earnings underpinning market sentiment, European stocks advanced slightly after a three-day gain, heading for their biggest monthly jump since February.
- Among the European notables this morning: Airbus (OTCPK:EADSY) +3.5% despite a new A400M charge; BNP Paribas (OTC:BNPZY) +3% after beating expectations; CaixaBank (OTCPK:CAIXY) -1.8% after cutting guidance; Lloyds (NYSE:LYG) is little changed; ArcelorMittal (NYSE:MT) +1.8% on keeping forecasts; Carrefour (OTCPK:CRRFY) edged higher after a profit rise; BG Group (OTCQX:BRGYY) up slightly despite a 65% slump in net income.
- Europe: FTSE 100 flat; DAX +0.1%; CAC 40 +0.4%; Euro Stoxx 50 +0.1%.
Fri, Jul. 24, 6:35 PM
- BG Group (OTCPK:BRGXF, OTCQX:BRGYY) says it has received final unconditional clearance from Brazil's competition authority for its $70B acquisition by Royal Dutch Shell (RDS.A, RDS.B).
- The clearance follows the 15-day period during which the preliminary approval granted by the Brazil group could have been appealed.
- The proposed deal now only needs pre-conditional approvals from the European Union, Australia and China to be completed.
Mon, Jul. 20, 3:20 AM
- Royal Dutch Shell (RDS.A, RDS.B) which is all set to acquire rival BG Group (OTCQX:BRGYY), may cut its capital expenditure for the year by several billion dollars from its previously announced $33B figure, FT reports.
- Shell also told investors that the BG deal works with crude oil at $70 per barrel, citing much greater synergies that will likely be "a multiple" of the $1B in annual projected savings.
Mon, Jul. 13, 8:58 AM
- BG Group (OTCPK:BRGXF, OTCQX:BRGYY) says it has started up and loaded its first liquefied natural gas from the second production train at the Queensland Curtis LNG facility in Australia.
- BG expects peak production by mid-2016, when both trains at the facility will be producing enough LNG to load 10 vessels/month combined, exporting ~8M metric tons/year; 27 cargoes have been shipped since production from the first train started in December 2014.
- While the start-up marks a major step forward for Queensland state's new $70B gas export industry, the new wave of LNG supply is set to hit the Asian market in a period of low prices because of slower than expected growth in demand and weak crude oil prices.
Wed, Jul. 8, 10:26 AM
- Royal Dutch Shell (RDS.A, RDS.B) wins regulatory approval from Brazil to buy BG Group (OTCPK:BRGXF, OTCQX:BRGYY), clearing another antitrust hurdle to completing its $70B acquisition.
- Brazil follows the U.S. in approving the deal, which still needs approval from countries including China.
- Brazil is set to account for 20% of Shell’s output by the end of the decade, with BG’s Brazil portfolio seen by analysts as a key growth driver.
Thu, Jun. 25, 9:59 AM
- Norway's offshore oil rig workers signed a new wage deal late yesterday, avoiding a strike that could have cut energy production.
- More than 500 rig workers, including employees on Repsol's (OTCPK:REPYF, OTCQX:REPYY) Varg and BG Group's (OTCPK:BRGXF, OTCQX:BRGYY) Knarr oil fields, had threatened to strike if talks failed; both fields are operated by vessels owned by Teekay's (NYSE:TK) Norwegian unit.
- A strike ultimately could have escalated to nearly 5K workers, the unions had said, but most of those employees work on exploration rigs and are not involved in ongoing oil production.
Wed, Jun. 24, 9:53 AM
- Norway's oil rig unions and employers have started government-backed mediation in a final attempt to avoid a strike that could shut down two North Sea oil fields.
- If the parties fail to reach a deal by midnight Oslo time, nearly 200 workers will go on strike on two Teekay-owned (NYSE:TK) production ships on the Knarr and Varg fields starting Thursday, the SAFE union has said.
- The Talisman-operated (NYSE:TLM) Varg field currently produces ~10K boe/day; the BG-operated (OTCPK:BRGXF, OTCQX:BRGYY) Knarr field produced ~18K boe/day in April, its first full month of operation.
- Although production has been dropping over the years, Norway is western Europe’s biggest producer, with daily output YTD of 1.93M barrels of oil, natural gas liquids and condensate.
Wed, Jun. 24, 7:48 AM
- Royal Dutch Shell (RDS.A, RDS.B) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) officially file their plans to form the world's biggest natural gas producer with competition regulators in Brazil, a key hurdle and strategic area for Shell's interest.
- Brazil is seen as key to Shell’s interest in BG, with CEO Ben van Beurden saying that the combined group would produce 550K bbl/day from the country by the end of this decade, 4x more than Shell’s current production.
- The deal also would make Shell the single largest foreign owner of Brazilian oil, which has raised concerns about the level of scrutiny the BG takeover will face from the country's regulators.
- Last week, the blockbuster deal received its first regulatory approval, from the U.S. FTC.
Tue, Jun. 16, 11:33 AM
- Royal Dutch Shell's (RDS.A, RDS.B) proposed $70B takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY) passes its first regulatory hurdle in the U.S., securing anti-trust clearance from the Federal Trade Commission.
- "Securing early termination of the U.S. antitrust waiting period from the FTC at this early stage is a clear demonstration of the good progress we're making on the deal," Shell CEO Ben van Beurden says.
- The deal, which the companies aim to complete by early 2016, will require further regulatory clearances from all the countries BG operates in, including the European Union, China, Australia and Brazil.
Tue, Jun. 9, 11:30 AM
- Repsol (OTCPK:REPYF, OTCQX:REPYY) joins its European peers in calling for governments to agree on carbon pricing at a UN climate summit later this year, expanding the group of energy companies seeking a voice at the meeting.
- Repsol signs the letter that BP, Eni (NYSE:E), Royal Dutch Shell (RDS.A, RDS.B), Statoil (NYSE:STO), Total (NYSE:TOT) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) released earlier this month - and that the top U.S. companies avoided - asking for a global price for carbon.
- Gas now accounts for ~55% of Repsol's total output following its acquisition of Talisman Energy in December.
Mon, Jun. 8, 8:40 AM
- Tanzania’s known natural gas reserves have increased by up to 18% in the last 12 months to 55T cf, up from 46.5T cf last June, following a number of discoveries in blocks off the country’s southeastern coast, the energy and minerals ministry says.
- Also, the 532-km gas pipeline connecting the offshore oilfields to the port city of Dar Es Salaam is complete and will be commissioned in September, the minister says.
- Companies including Exxon Mobil (NYSE:XOM), Statoil (NYSE:STO), Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) have made a series of finds off the coast of Tanzania and Mozambique in recent years, making the region a hotspot for energy investors; more than 100T cf of natural gas already have been discovered in Mozambique alone.
BRGYY vs. ETF Alternatives
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track... More
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