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Royal Dutch Shell plc (RDS.A)

  • Fri, Jan. 2, 2:55 PM
    • Europe largely missed out on last year's $383B in oil and gas sector M&A activity, but Europe likely will get a bigger piece of the action in 2015 if current oil prices persist, according to Reuters' Fiona Maharg-Bravo.
    • Net debt at smaller explorers such as Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY), Premier Oil (OTC:PMOIF), Afren (OTCPK:AFRNF) and EnQuest (OTC:ENQUF) could all reach 3x EBITDA if oil remains at $60/bbl through 2015, Barclays estimates.
    • BG Group (OTCPK:BRGXF, OTCQX:BRGYY) has long been a target, and the new CEO starts in March; BP faces big liabilities in the Gulf of Mexico and volatility in Russia, it’s not clear if Shell (RDS.A, RDS.B) will make a move, while Exxon (NYSE:XOM) and other U.S. majors could be tempted.
  • Dec. 5, 2014, 10:19 AM
    • The recent history of oil price collapses shows that M&A activity typically jumps when prices fall, so WSJ says it may be time for another wave of acquisitions to sweep through the energy sector as crude oil prices have been cut by more than a third since June.
    • BP jumped by nearly 5% Tuesday on chatter that Royal Dutch Shell (RDS.A, RDS.B) was going to make a bid - the rumor was not new, but it took on a new credibility in the new low price oil environment.
    • The WSJ report says several bankers believe BG Group (OTCPK:BRGXF, OTCQX:BRGYY) could be a target for a big company looking to get bigger.
    • Oppenheimer analyst Fadel Gheit points out that big deals may be harder now than in the past because there are simply fewer large companies left.
  • Dec. 2, 2014, 10:58 AM
    • BP (BP +2.4%) is surging higher amid market chatter of a takeover bid from Royal Dutch Shell (RDS.A +1.9%).
    • "BP shares have rallied on the back of enthusiastic buying on talk of Shell's interest in the company, but it seems difficult to believe that Shell would make such a big acquisition at this difficult time for the oil market," says IG analyst Chris Beauchamp.
  • Aug. 27, 2014, 6:11 AM
    • Royal Dutch Shell (RDS.A, RDS.B) is leading a consortium to sell several Nigerian oilfields for approximately $5B, as foreign companies reduce their onshore oil presence in the country due to theft, sabotage and local disruptions.
    • The four oilfields and a key pipeline are co-owned by Shell, France’s Total (NYSE:TOT) and Eni (NYSE:E) of Italy.
    • A deal is expected in the next few weeks after which all potential buyers will require government approval.
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  • Aug. 14, 2014, 8:53 AM
    • Blackstone (NYSE:BX) and its Vine Oil & Gas partnership confirm an agreement to acquire Royal Dutch Shell’s (RDS.A, RDS.B) Haynesville assets for $1.2B.
    • The assets comprise more than 107K net acres in north Louisiana in the core of the Haynesville Shale natural gas shale basin.
    • Combined with the just announced sale of Pinedale gas assets in Wyoming, Shell amassed $2.1B in cash and added acreage in the Marcellus and Utica shale plays in Pennsylvania.
  • Aug. 14, 2014, 8:44 AM
    • Ultra Petroleum (NYSE:UPL) agrees to acquire all Pinedale field properties from Royal Dutch Shell (RDS.A, RDS.B) affiliate SWEPI in exchange for a portion of UPL's Marcellus Shale properties and $925M in cash.
    • Shell's interest in the Pinedale field in Wyoming produces ~189M cfe/day of natural gas and condensate; as a result of the deal, UPL will operate 1,577 gross wells, or ~68% of the Pinedale field.
    • In exchange, Shell will receive $925M and ~155K net acres in the Marcellus Shale, which produces ~100M cfe/day of natural gas.
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  • Aug. 11, 2014, 1:44 AM
    • Blackstone (NYSE:BX) is nearing a deal to buy Royal Dutch Shell's (RDS.A, RDS.B) 50% stake in the Haynesville Shale formation for $1.2B.
    • The gas field lies under large parts of Louisiana and Texas, and is also 50% owned by Encana (NYSE:ECA).
    • A deal would add to Blackstone's energy holdings in Louisiana. In February 2012, Blackstone agreed to invest $2B in Cheniere Energy Partners, helping the company construct a gas-liquefaction plant in Louisiana for export markets.
  • Feb. 21, 2014, 3:11 AM
    • As flagged, Shell (RDS.A, RDS.B) has agreed to sell Australian downstream assets to a group that includes Dutch-owned oil trader Vitol for $2.6B.
    • The deal excludes Shell's aviation-fuel operations.
    • Shell is selling the business, which includes a refinery, import terminals and 870 service stations, as part of a $15B global divestment program. Yesterday, Shell said it is selling its downstream business in Italy to Kuwait Petroleum International. (PR)
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  • Jan. 20, 2014, 4:33 AM
    • Shell (RDS.A) has agreed to sell holdings in natural-gas projects in Western Australia to the Kuwait Foreign Petroleum Exploration Company for $1.135B.
    • Shell is divesting an 8% interest in the Wheatstone and Iago gas fields and a 6.4% stake in the related Wheatstone liquefied natural gas project.
    • The transactions are part of Shell's efforts to improve "capital efficiency," and come after the company said last year that it would "significantly" increase asset sales in 2014 and 2015.
    • The deals also follow Shell issuing a profit warning last week. (PR)
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  • Dec. 16, 2013, 11:28 AM
    • Royal Dutch Shell’s (RDS.A, RDS.B) long-awaited sale of its $6.4B stake in Woodside Petroleum (WOPEF, WOPEY) may open the door for Asian buyers to grab a slice of Australia’s second-largest oil and gas producer, or even the whole company, Bloomberg speculates.
    • Shell, which sees its 23% holding in Woodside as “increasingly non-core," may exit its stake as soon as next year; while Shell may opt to sell the stock back to Woodside and institutional investors, China’s Cnooc (CEO) and Sinopec (SNP) might pursue the stake or a full takeover.
    • Government opposition to a foreign takeover may have eased since Shell was blocked in 2001, analysts say, and the company is more affordable after its multiple to cash flow has been more than cut in half since 2011.
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  • Oct. 29, 2013, 2:34 PM
    • More takeover talk lifts shares of Pioneer Natural Resources (PXD +3.2%), as a Bloomberg profile says the energy explorer with more than 7,000 wells in the Permain Basin is the hottest oil play in the U.S., seconding a notion from John Paulson.
    • PXD's proven reserves and production in low-risk, predictable areas mean suitors would have to offer at least a 30% premium, or ~$275/share, analysts say.
    • ConocoPhillips (COP), Chevron (CVX) and Shell (RDS.A, RDS.B) may be looking to expand their Permian acreage, and buying PXD would accomplish that while giving them more expertise in unconventional drilling techniques; only such a large, integrated company can afford the large amount of capital needed to fully develop the resource.
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  • Oct. 17, 2013, 6:25 PM
    • The Daily Mail passes along a rumor going around earlier that Chesapeake Energy (CHK) could be takeover bait for the likes of BP or Royal Dutch Shell (RDS.A, RDS.B) at ~$40/share.
    • Early morning strength in the shares may have been attributed to the rumor, but most gains fell away into the afternoon; shares closed +0.3% but have picked up ~2% AH.
  • Aug. 18, 2013, 1:03 AM
    • Petrobras (PBR) has raised $2.1B from the divestment of holdings in a number of petrochemical and oil-exploration projects.
    • These include the sale of a 35% stake in a Santos Basin program to China's Sinochem for $1.54B. The other participants in the project are Shell (RDS.A) with 50% and ONGC with 15%.
    • Petrobras has also sold holdings in a petrochemical facility, a Gulf of Mexico bloc and a thermal energy company in Brazil.
    • Petrobras offloaded the assets to help finance a $237B five-year investment program. The firm had intended to sell $14.8B of assets this year but has reduced the target to $9B due to the difficulty of making the divestments.
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  • Apr. 25, 2013, 10:43 AM
    Cobalt Energy (CIE +1.8%), which has doubled in value since going public in 2009 but still trades at a substantial discount to the value of its underlying assets, is turning into a takeover target for energy companies attracted to its oil finds from Africa to the Gulf of Mexico, Bloomberg writes. CIE’s assets are "a needle mover" for a large international player, Guggenheim says.
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  • Nov. 9, 2012, 6:16 AM
    Exxon Mobil (XOM) is in talks with BP (BP), Shell (RDS.A), Lukoil, CNPC and Eni (E) about selling its stake in the West Qurna-1 oilfield in southern Iraq, a senior government spokesman says. Exxon expects to complete a sale of the "super-giant oilfield" by the end of December. It's getting out so it can concentrate on exploration projects in Kurdistan, which is in a dispute with Baghdad over the region's energy resources.
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  • Oct. 3, 2012, 3:54 AM
    Petrobras (PBR) is in talks with three prospective buyers to sell them $4B-$6B worth of stakes in oil blocks in the Gulf of Mexico, with Brazilian media reports saying Shell (RDS.A), Exxon (XOM), Chevron (CVX) and BP (BP) are likely to be the most interested. The divestments are part of Petrobras' strategy of selling $14.5B worth of non-core assets.
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Company Description
Royal Dutch Shell PLC is an integrated oil & gas company. The Company explores for & extracts crude oil, natural gas and natural gas liquids. It also liquefies and transports gas.