Royal Dutch Shell plcNYSE
Thu, Oct. 20, 6:23 PM
- Royal Dutch Shell (RDS.A, RDS.B) agrees to sell ~206K acres of non-core oil and gas properties in western Canada to Tourmaline Oil (OTCPK:TRMLF) in a cash and stock deal valued at ~$1.03B.
- Shell says the deal comprises $758M in cash and Tourmaline shares valued at $279M.
- The acreage includes 61K net acres in the Gundy area of British Columbia, and 145K net acres in the Deep Basin area of Alberta, and the assets are a combination of developed and undeveloped lands producing 24,850 boe/day of dry gas and liquids.
Tue, Oct. 18, 3:53 AM
- Shell's (NYSE:RDS.A) sale of a 33% stake in Japanese refining partner Showa Shell to domestic rival Idemitsu Kosan (OTC:IDKOF) in a $1.6B deal could be held up because of a wider plan for a total merger of the Japanese companies, analysts warn.
- Any delay in the smaller deal would do no good for Shell's plans to sell $30B of assets by 2018 as it looks to slash its $75B of debt, a large chunk of which it the company took on after it bought British peer BG Group for $50B in January.
- By June, Shell had sold just $1.5B in assets.
Tue, Sep. 27, 5:56 PM
- Shell Midstream Partners (NYSE:SHLX) agrees to acquire an additional 20% equity interest in Mars Oil Pipeline and a 49% equity interest in Odyssey Pipeline from Royal Dutch Shell (RDS.A, RDS.B) for $350M.
- Mars delivers crude from the Mars Basin and the Amberjack system, offering 600K bbl/day of capacity into LOOP’s Clovelly facility, and Odyssey has 220K bbl/day of capacity from the eastern Gulf of Mexico to the Delta Pipeline system, enabling deliveries to refineries in Louisiana and Mississippi.
- SHLX expects the acquisition to be immediately accretive to unitholders.
Tue, Aug. 30, 11:47 AM
- Analysts say Royal Dutch Shell's (RDS.A, RDS.B) first oilfield sale after its BG Group acquisition bodes well for its sale talks in the North Sea, Gabon and New Zealand, signaling that buyers will meet the company's expectations on value.
- The $425M sale of the Brutus/Glider fields has an implied oil price of ~$60/bbl, more than $10/bbl above current prices, according to UBS analysts who say "we may now be entering a period where both buyer and seller can see acceptable relative value, unlocking the A&D [acquisition and divestiture] market."
- But analysts also say further deals may prove harder to clinch, as activity in the U.S. market picked up faster than other areas; among various places, Shell is trying to sell a large portfolio of fields in the U.K. North Sea, an aging basin with high production costs and strict regulatory requirements.
- Shell has sold $2B of assets YTD, leaving little time to hit its $6B-$8B target.
Mon, Jun. 6, 2:38 PM
- Royal Dutch Shell’s (RDS.A, RDS.B) $30B asset disposal plan put in place after its takeover of BG Group likely will drag on beyond 2018 if oil prices remain depressed, Financial Times reports.
- Shell is planning to sell off a large chunk of its portfolio because the BG deal significantly increases the combined group’s debt load, but people involved in the sale process tell FT that while that timeline is still in place, the deadline could be pushed back if Shell cannot secure what it thinks the assets are worth.
- Shell’s sale program "started with grand intentions to refocus the company, but a burgeoning debt pile has now transformed this program into an essential delevering tool," Citigroup analysts say.
- Shell CFO Simon Henry is expected go into further detail about the asset sale plan and the company’s efforts to cut costs at an investor event in London tomorrow.
Sat, Mar. 19, 8:25 AM
- Saudi Aramco wants to buy more U.S. refining and chemical plants once the break-up of its Motiva joint venture with Royal Dutch Shell (RDS.A, RDS.B) is complete, Reuters reports.
- Aramco wants to acquire refineries and get into chemicals, a source tells Reuters, saying "they want to expand and Shell doesn't"; Jefferies analyst Jason Gammel looks at the deal as giving both companies "a lot of flexibility."
- Any potential acquisition targets are not yet known, but Aramco clearly seeks to expand its footprint in major markets, helping guarantee demand for its crude oil exports amid intensifying global competition.
- The breakup also allows Aramco to accelerate the landmark public offering of its vast downstream operations, which amount to nearly 5.5M bbl/day of solely or jointly owned refining capacity around the world.
- For Shell, being the sole owner of two Louisiana refineries in Louisiana as well as some U.S. marketing operations offers an opportunity to sell assets to help fulfill its $30B sale program over the next three years to pay for its $50B BG Group takeover; Shell says Aramco also will pay a so far undisclosed sum on the completion of the deal.
- While an outright sale of the refineries is seen as less profitable, Shell will be able to offer much of the infrastructure linked to the operations, including pipelines, storage tanks and distribution facilities, to other companies including its Shell Midstream Partners (NYSE:SHLX) MLP.
Mon, Feb. 15, 5:45 AM
- The $53B mega deal - creating the world's biggest trader of liquefied natural gas - came into force today after shareholders waved through the tie-up at the end of January despite slumping oil prices.
- "We will now be able to shape a simpler, leaner, more competitive company, focusing on our core expertise in deep water and LNG," CEO Ben Van Beurden declared.
- Shell (RDS.A, RDS.B) has said it will cut more than 10K jobs from the combined group and sell $30B of assets over the next three years in order to finance the deal, buy back shares and support dividends.
Thu, Jan. 28, 9:58 AM
- BG Group (OTCQX:BRGXF, OTCQX:BRGYY) says its shareholders have voted in support of the takeover by Royal Dutch Shell (RDS.A, RDS.B), Reuters reports, all but completing the long-awaited merger.
- At a meeting in London, 99.5% of BG shareholders voted in favor of the merger, a day after 83% of Shell's shareholders approved the deal.
- BG CEO Helge Lund, who joined BG just weeks before the merger was announced, will step down; Shell exec Huibert Vigeveno, who headed the integration planning in recent months, will become transitional CEO.
Wed, Jan. 27, 7:40 AM| Wed, Jan. 27, 7:40 AM | 2 Comments
Wed, Jan. 27, 4:44 AM
- Royal Dutch Shell (RDS.A, RDS.B) faces a crucial test this week when its proposed $45B acquisition of BG Group (OTCQX:BRGYY), the British oil and gas producer, will be put to both companies' shareholders.
- Shell investors are expected to vote today, and BG's tomorrow.
- Some have been skeptical about Shell going ahead with such a big acquisition at a time of falling oil prices, but big stakeholders like the Norway oil fund support the deal.
Thu, Jan. 14, 1:57 PM
- Royal Dutch Shell’s (RDS.A, RDS.B) deal to buy BG Group (OTCQX:BRGXF, OTCQX:BRGYY) is edging closer to completion despite some investor dissent and even as the spread between the deal price and BG’s current share price sits at a still-high 6%, WSJ's Helen Thomas writes.
- Thomas notes that Shell needs only 50% of voting shareholders to back the deal; turnout at Shell's annual general meeting tends to be only ~54%, and the figure could approach 45%-50% when considering that perhaps 6% of Shell’s stock has been borrowed by short sellers to balance long arbitrage positions in BG, which could be in the hands of trading desks or other institutions that are less likely to vote.
- "Even with a fat spread, the chances of this deal faltering at the final hurdle look slim," Thomas concludes.
Fri, Jan. 8, 2:41 PM
- Standard Life Investments, one of the biggest shareholders in Royal Dutch Shell (RDS.A, RDS.B), says it will vote against Shell’s plan to buy BG Group (OTCQX:BRGXF, OTCQX:BRGYY).
- Standard Life, which is asking Shell to re-negotiate the terms of the deal, holds 0.4% of Shell’s A shares and 1.7% of the B shares, making it the 11th-biggest shareholder.
- Earlier: Shell's deal for BG gains backing of key shareholder advisory firm
Fri, Jan. 8, 10:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) wins the support of proxy advisory firm ISS for its takeover bid from BG Group (OTCQX:BRGXF, OTCQX:BRGYY), saying the deal has “compelling strategic rationale” and “significant positive economics to be realized within a relatively short time frame.”
- Thirty-five of the top 50 shareholders in Shell subscribe to ISS, so a positive recommendation is akin "to a top five shareholder publicly and vocally supporting the transaction,” says Fred Ward at Olivetree Financial.
- The spread between the value of BG’s share price and Shell’s offer for each BG share has widened to an unusually high 11%, and a widening spread could mean investors are not confident the deal will be approved; low oil prices and the Chinese market turmoil also may have damaged the deal’s prospects.
- Earlier: Shell set to secure investor approval for BG takeover, reports say (Jan. 7)
Thu, Jan. 7, 2:22 PM
- Royal Dutch Shell (RDS.A, RDS.B) is confident that shareholders will approve its takeover bid for BG Group (OTCQX:BRGXF, OTCQX:BRGYY) at a Jan. 27 meeting, Financial Times reports, even as crude oil prices languish near 12-year lows and several large Shell investors privately voice concerns over the economics of the proposed takeover.
- FT also reports that proxy adviser ISS is expected to recommend that investors support the deal.
- Reuters reports that in their final round of meetings with big investors, Shell execs are saying the BG deal can work even if oil prices average $50/bbl for two years, the company's lowest estimate so far.
- CFO Simon Henry reportedly is saying Shell will cut capital spending further below the planned $35B for 2016, delay share buybacks and extend scrip dividends, but will keep the size of its dividend unchanged.
Dec. 21, 2015, 4:23 AM
- Shareholders of Royal Dutch Shell (RDS.A, RDS.B) and BG Group (OTCQX:BRGYY) are expected to vote on Jan. 27 & 28 on their planned combination announced eight months ago.
- The decision comes after the two firms won Chinese antitrust approval for the merger, clearing the last regulatory hurdle for the deal.
- In BG's case, votes in favor must represent at least 75% of the total value of BG shares. Shell requires 50% backing.
Dec. 17, 2015, 4:53 AM
- Royal Dutch Shell's (RDS.A, RDS.B) takeover of BG Group (OTCQX:BRGYY) may look less attractive after the slide in oil prices but the fact the same investors own nearly half of both firms means the deal is still likely to go through.
- According to Reuters data, investors holding about 43% of Shell's shares also hold 53% of BG.
- Shareholders will be voting separately on the deal at meetings expected next month.