Today, 5:28 PM
- TransCanada (NYSE:TRP) says it has secured the final two permits needed from British Columbia regulators to begin construction and operation of its proposed Coastal GasLink pipeline project.
- TRP also says it has approvals from 11 First Nations communities along the length of the proposed pipeline route, and that progress is being made with remaining groups.
- The $4.8B 650-km pipeline would link natural gas fields in northeastern British Columbia the proposed LNG Canada liquefied natural gas export facility in Kitimat, B.C.
- The LNG Canada consortium, led by Royal Dutch Shell (RDS.A, RDS.B), is expected to make a final investment decision on the project late in 2016, and if approved, TRP could start pipeline construction next year.
- Now read TransCanada: A long-term growth opportunity
Yesterday, 11:18 PM
- The huge wildfire (I, II) that already has forced more than 80K people to flee their homes in and around Fort McMurray and disrupted oil sands operations in Alberta reportedly is set to expand.
- Wildfire officials say the blaze probably will grow to 100 sq. km (40 sq. miles) from ~80 now, and that although lower temperatures may aid firefighters tomorrow, the fire is expected to last at least until the weekend.
- WTI crude oil prices have jumped past $45/bbl overnight as the fire disrupts oil sands production.
- Alberta oil sands producers are not yet in the fire's path but have cut or halted operations because of evacuations: Royal Dutch Shell’s (RDS.A, RDS.B) Canadian unit shut its Albian Sands mining operations which produce ~255K bbl/day, Suncor (NYSE:SU) cut production at all of its oil sands sites, Inter Pipeline (OTCPK:IPPLF) partially closed its 540K bbl/day Polaris pipeline system and its 346K bbl/day Corridor system, Husky Energy (OTCPK:HUSKF) cut output at its Sunrise oil sands plant by two-thirds to 10K bbl/day, Exxon’s (NYSE:XOM) Imperial Oil (NYSEMKT:IMO) Canadian unit says production has not yet been affected, and operations by Enbridge (NYSE:ENB), Pembina Pipeline (NYSE:PBA) and Canadian Natural Resources (NYSE:CNQ) apparently have not been affected.
- The inferno is shaping up to be worse than the Slave Lake fire of 2011, one of the most costly natural disasters in Canada’s history, and is a severe blow to an area already devastated by job losses stemming from low energy prices.
Yesterday, 11:16 AM
- Nick Tiller of Precocity Capital is long Royal Dutch Shell (RDS.A, [[RDS.B), noting its 7% yield at current prices. The dividend is sustainable, he says, as the company can borrow in Europe at negative interest rates.
- Synergies from the BG acquisition will be greater than the guided-for $35B. Capex is coming down and production is going up, and a massive inflection is due to take place which will take free cash flow per share from its current $8 to $25 by 2020.
Yesterday, 10:18 AM
- Royal Dutch Shell (RDS.A, RDS.B) says it has shut down its Albian Sands mining operations in Alberta following the huge wildfire that forced evacuation of tens of thousands people from Fort McMurray and the surrounding area.
- "While our operations are currently far from the fires, we have shut down production at our Shell Albian Sands mining operations so we can focus on getting families out of the region,” the company says.
- Suncor Energy (NYSE:SU) earlier said it was reducing output at its facilities in the region to allow workers and their families to get to safety; SU says its plant is ~16 miles north of Fort McMurray and is in a safe condition.
- Nexen, the Cnooc (NYSE:CEO) subsidiary whose Long Lake oil sands project is close to Fort McMurray, says it is working on a modified staffing plan to manage the situation.
Yesterday, 8:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) -1.9% premarket after saying it cut its 2016 spending plans by another 10% from the target set in February when it completed the acquisition of BG Group, and will cut even further if needed.
- In the first quarterly results since completing the BG deal, Shell reported better than expected Q1 earnings, as lower costs helped offset the impact of weaker oil and gas prices and an increase in operating expenses associated with BG.
- Shell now says it expects to spend $30B this year, cutting $3B from previous guidance as it cancels projects such as the sour gas project in Abu Dhabi, and sees full-year operating expenses for the combined company at $40B, down from $53B in 2014; the dividend is maintained at $0.47.
- The BG addition also helped raise the company's production volumes by 16% Y/Y in the quarter to 3.7M boe/day.
- Shell says its quarterly profit on a current cost-of-supplies basis totaled $1.55B, 58% below the 3.7B in the year-ago quarter but beating the $1.04B analyst consensus.
- Shell also warns that low oil and gas prices, significant maintenance at production sites as well as "substantial redundancy and restructuring charges" will impact Q2 earnings.
Yesterday, 7:30 AM
- More than 60K residents of the Canadian oil city of Fort McMurray evacuated overnight as authorities battled an out-of-control wildfire.
- Authorities say the worst of the fire is not over, as the dangerous conditions that sparked the blaze - high temperatures, low humidity and high winds - are expected to continue today.
- Suncor Energy (NYSE:SU) said late last night that it was “reducing production” at all of its oil sands operations in the region; the company, which produces 453K bbl/day from its oil sands sites in northern Alberta, did not quantify the volume or timeline for the reduced output.
- Other major oil sands producers, such as Exxon Mobil (NYSE:XOM) subsidiary Imperial Oil (NYSEMKT:IMO), Royal Dutch Shell (RDS.A, RDS.B) and Canadian Natural Resources (NYSE:CNQ), said their operations have not been affected but are monitoring events.
Yesterday, 5:57 AM
Yesterday, 3:42 AM
- Royal Dutch Shell's (RDS.A, RDS.B) CCS (Current Cost of Supplies) earnings per share, excluding identified items, decreased 63% to $1.6B, as the tumble in oil prices continued to take its toll.
- Unfavorable currency effects and a weak Brazil market weighed on AB InBev's (NYSE:BUD) net profit, but the brewer said it expects to close its SABMiller (OTCPK:SBMRY) deal in the second half of 2016.
- Siemens (OTCPK:SIEGY) powered ahead with better than expected second-quarter profits, boosted by earnings growth at its power, gas and energy-management divisions.
Mon, Apr. 25, 9:57 AM
- Royal Dutch Shell (RDS.A, RDS.B) announces plans to close several U.K. offices and offer severance packages to thousands of employees in the wake of its ~$50B acquisition of BG Group.
- Shell says it will closed BG's headquarters in Reading by year's end and offer the 800 employees based there a chance to move to Shell’s central London base, and will shut BG offices in Aberdeen and Manchester
- Overall, Shell has announced plans to cut ~10K jobs during 2015-16 to consolidate the company and cut costs amid low oil prices following its BG acquisition.
- Now read Royal Dutch Shell: Trading at a deep discount to peers
Thu, Apr. 21, 6:17 PM
- Alberta's provincial government releases technical formulas for its new oil and gas royalty framework, a move welcomed by the energy industry as providing clarity to potential investors and enabling producers to move forward with drilling and investment plans.
- Analysts say the technical formulas are a net positive for producers by basing well cost allowances on the 2012-15 period when costs were higher, but oil prices - and whether they recover or continue to languish near $40/bbl - would have a much greater impact on investment decisions in Alberta than the royalty structure.
- Alberta's new NDP government unveiled its new royalty framework in January which left rates largely unchanged on oil sands projects and existing wells.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
- Now read Which Canadian mid-cap pipelines pay out safe dividends?
Thu, Apr. 21, 12:59 PM
- Royal Dutch Shell (RDS.A, RDS.B) is working on selling out of its onshore assets in Gabon as it seeks to refocus its African presence, Reuters reports.
- Bids are due in June for the fields, which one source estimates could be worth ~$700M but another says price indications so far are below Shell's expectations and that no sale may occur.
- Shell has been operating in Gabon for more than 50 years but it plans to sell at least $30B of assets over the next three years to finance its $52B acquisition of BG and focus its portfolio on deepwater oil production and the liquefied natural gas market.
- Now read Royal Dutch Shell: The strongest dividend you'll find in a safe company
Tue, Apr. 19, 10:59 AM
- ChemChina approached BG Group with a takeover offer late last year as Royal Dutch Shell (RDS.A, RDS.B) was preparing to close a $52B deal to buy the British energy company, Reuters reports, citing seven banking and industry sources.
- The Chinese chemical giant flew a delegation to Britain in December and approached BG Chairman Andrew Gould with plans for a full cash bid, eight months after Shell first announced the deal and just weeks before the purchase received final anti-trust and shareholder clearances, but Gould deemed ChemChina's offer insufficient to bring before BG's board as a viable alternative to Shell's offer, according to the report.
- ChemChina went on to offer $43B to buy Swiss seeds and pesticides company Syngenta in February, but its readiness to go head-to-head with one of the world's biggest and oldest oil companies shows how far it has come.
- Now read What to expect from Royal Dutch Shell's earnings report
Mon, Apr. 18, 11:44 AM
- Royal Dutch Shell (RDS.A, RDS.B) says theft of crude oil from the pipeline network of its Nigerian subsidiary fell to 25K bbl/day in 2015, ~32% below 2014 levels.
- Nigerian Pres. Buhari has said theft siphons as much as 250K bbl/day of crude out of the country's ~2M bbl/day of production and last week promised to crack down on groups responsible for pipeline attacks.
- Still, sabotage-related spills remain a serious problem for the country; Shell has a force majeure in place on Forcados crude oil exports following an attack on a subsea pipeline in February, while Eni (NYSE:E) reportedly declared force majeure on Brass River exports late last week.
- Now read "Inside Shell, there is a £24 company trying to get out" - Morgan Stanley
Sat, Apr. 16, 6:51 PM
- Morgan Stanley was out with a bullish note on Royal Dutch Shell this week.
- MS raises its price target to 2,030p from 1,850p, implying upside of 15%. Its bull scenario carries a price target of £24, implying upside of 36%.
- "The last 15 months have not been kind to Shell," firm says. "Concerns over the price paid for BG Group, uncertainty over management's plan after the transaction and skepticism that its ambitious $30B disposal program can be realized have all weighed heavily on the shares since early 2015, compounding the impact of low oil and gas prices.
- MS notes that despite concerns over Shell's dividend, its historical dividend track record shows no dividend cuts in the last 70 years. "This highlights the extent of investor concerns, but at the same time raises the question whether the market is right to be so uniquely worried about Shell, or whether instead, its shares provide a genuine value opportunity."
- Firm says Shell has cash flow momentum in its upstream portfolio. "As a result, we think there is potential for FCF to improve considerably."
- Now read Turnaround Time For Royal Dutch Shell »
Fri, Apr. 15, 3:18 PM
- Noble Corp. (NE +2.5%) has won a two-year extension on an agreement with Royal Dutch Shell (RDS.A, RDS.B) for a rig working in the North Sea, but Barclays thinks NE is losing contract negotiating leverage since the extension allows Shell to cancel the contract for convenience.
- The firm sees the net valuation impact of the changes - with the two-year Shell extension at a 62% lower dayrate of $88K - as minimal but an overall negative for the company and the industry, since more customers may begin demanding termination for convenience rights in an increasingly competitive offshore rig environment.
- Barclays maintains NE at Underweight with a $6 price target.
- Now read Noble Corp. has potential as a long-term dividend play
Thu, Apr. 14, 3:30 PM
- The Obama administration announces new oil well control rules aimed at preventing the kind of blowout that happened in the 2010 Gulf of Mexico oil spill.
- The regulations announced by the Interior Department tighten requirements for blowout preventers, well design, well control casing, cementing and sub-sea containment, and call for real-time monitoring, third-party reviews of equipment, regular inspections and safe drilling margin requirements.
- The effects will be particularly acute for the Gulf’s top crude oil and gas producers, Royal Dutch Shell (RDS.A +1.1%), BP (BP -1.6%), Chevron (CVX +0.1%) and Exxon Mobil (XOM +0.4%); XOM says the new rules will cost $25B over 10 years and render many offshore discoveries worthless.
- Offshore drilling stocks are broadly lower on the news: RIG -6.1%, DO -1.4%, ESV -5.1%, RDC -7.3%, NE -5.4%, ATW -9%, SDRL -8.9%, SDLP -4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN
Royal Dutch Shell Plc engages in the oil and natural gas production. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which are engaged in exploring for and recovering... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United Kingdom
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