Shell Plc (SHEL)

[conix]

Is anyone buying BG for the merger arbitrage?

[Timothy Smith]

Newly released documents reveal a multitude of problems with anti-pollution equipment and a botched fire drill earlier this year on separate Shell-contracted (RDS.A, RDS.B) Arctic drillships before beginning an exploratory oil well in the Chukchi Sea.

[Timothy Smith]

Shell hasn't reduced the dividend since 1945.

The high-grade payout has stood for 70 years, whether the price for a barrel of oil has been $140 or $10.

[Timothy Smith]

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.

[Timothy Smith]

There are a couple of reasons why Shell is performing better than its U.S. competitors.

First of all, Shell is more disciplined with respect to operational CAPEX.

Sure the company spent $70 billion to acquire BG Group (OTCPK:BRGXF), but operational CAPEX decreased much faster in the first half of 2015 compared to Exxon and Chevron.

Second, Shell is executing its operations very efficient. The company reported only a -15% drop in EPS while revenue dropped -37%.

[Timothy Smith]

It is my opinion that the economics are very challenged at these levels. Heck maybe even at $60 levels. However this project would take years to get fully developed and big oil is always planning years in advance or in this case to be ready for a rebound in prices. That said there have been reports of some off shore leases expected to expire, although I don't recall of any were related to $RDS.A.

[DewDiligence]

Does it still make economic sense to do so?

[Timothy Smith]

Federal regulators have granted Royal Dutch Shell (RDS.A, RDS.B) the final permit it needed to drill in the Arctic off Alaska's northwest coast. The permit was granted after Shell brought in a vessel carrying a device (known as a capping stack) needed to stop a potential well blowout.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) plans to swap a stake in one of its international energy assets for part of Gazprom’s (OTCPK:OGZPY) Sakhalin-3 project, as it seeks greater involvement in the world’s biggest gas reserves.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) expects crude oil prices to recover very gradually over the next five years, with progress slowed by persistent global oversupply and receding Chinese demand growth.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) may consider restarting mothballed Canada oil sands projects but not until oil prices return to $80/bbl, says Marvin Odum, its director of the upstream Americas.

[DewDiligence]

Gorgon revisited (today’s NYT): #msg-115154483.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) says it will move ahead with its Appomattox deepwater development, a project that will include building the company’s eighth and largest deepwater platform in the Gulf of Mexico.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) to Outperform from Sector Perform, noting that it is now the biggest underperformer in the sector YTD and down 16% since announcing the BG Group acquisition in April.

[Timothy Smith]

Gazprom (OTCPK:OGZPY) is building a global strategic alliance with Royal Dutch Shell (RDS.A, RDS.B) that will include asset swaps and allow it to penetrate new markets, CEO Alexei Miller tells Reuters.

[Timothy Smith]

Ten environmental groups today filed suit at the San Francisco-based 9th U.S. Circuit Court of Appeals against the U.S. government to overturn the approval of Royal Dutch Shell's (RDS.A, RDS.B) plan for Arctic offshore drilling.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden endorses the view that the world’s fossil fuel reserves cannot be burned unless a way is found to capture their carbon emissions, but maintains that hydrocarbons will be needed for years to come.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) joins BP in calling on European regulators to refrain from imposing stricter capital requirements and greater disclosure measures on oil trading.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) says it has received a $529M binding offer from Ireland's DCC Energy (OTC:DCCPF) for its Butagaz liquefied petroleum gas business in France.

[Timothy Smith]

Pres. Obama is seeking to balance the need to meet oil demand and concerns about climate change as the U.S. government considers final approvals for Royal Dutch Shell’s (RDS.A, RDS.B) Arctic drilling plans, according to the State's Department's special representative for the Arctic

[Timothy Smith]

Shell (RDS.A, RDS.B) may be forced to divest BG Group's (OTCPK:BRGXF) 29.25% stake in a lucrative natural-gas field in Kazakhstan called Karachaganak once Shell completes it acquisition of BG.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) will consider small additions to its North America oil and gas business, despite ruling out large acquisitions after its deal to buy BG Group, the director of Shell's Americas exploration and production business tells Reuters.

The BG deal "doesn't make us shy away from a bolt-on" acquisition, Marvin Odum says, even though "it is hard to believe there is something big out there that is compelling

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) yesterday docked a 400-ft. Arctic drilling rig at its temporary home in Seattle, despite protests from environmentalists and the city's opposition.

[Timothy Smith]

I would imagine that may be delayed with current climate. Going to be interesting to see.

[DewDiligence]

The question is: Do they still want to do that?

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) wins approval from the U.S. Interior Department to resume oil exploration this year in the Chukchi Sea off Alaska’s Arctic coast, provided it obtains all necessary permits from other state and federal agencies and comply with endangered species rules.

[Timothy Smith]

I believe strong dividend in a depressed market is a very strong value proposal.

[Norton1973]

RDS.A, part of the reason i bought/like owning Royal Dutch Shell is the dividend. :)

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) says it is postponing the startup of the Carmon Creek oil sands project in Alberta until 2019, about two years later than initially planned, while it works to wring cost savings from suppliers.

[Timothy Smith]

Royal Dutch Shell (NYSE:RDS.A) declares $0.94/share quarterly dividend, in line with previous.

Forward yield 5.92%

Payable June 22; for shareholders of record May 15; ex-div May 13

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) and BP post solid gains in London trading following after Prime Minister Cameron’s Conservative Party swept to an unexpectedly strong U.K. election victory.

Shell, BP move higher following U.K. election results
http://www.seekingalpha.com/news/2506896

[Timothy Smith]

@Our growth assets in Brazil and Australia continued to ramp up, with production in each more than doubling year-on-year. We also started up the Knarr FPSO in Norway, however we produced fewer barrels in the UK than expected due to shut-ins.

"Our LNG business performed strongly. We delivered more cargoes and in our North American gas marketing business we demonstrated our ability to move swiftly to capture the benefits of the rise in US gas prices due to cold weather."

Mr Lund said BG Group would continue to operate independently until completion of the deal, which is expected in 2016.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/11591382/BG-Group-reports-fall-in-profits-as-oil-price-drop-bites.html

[Timothy Smith]

Shell agreed to buy BG Group last month in a £47bn deal that could be one of the biggest of the year if approved by shareholders and regulators.

http://www.petrolucrum.com/2015/05/10/bg-group-reports-fall-in-profits-as-oil-price-drop-bites-telegraph-co-uk-2/

[Norton1973]

Nice day today! RDS.A

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) and BP post solid gains in London trading following after Prime Minister Cameron’s Conservative Party swept to an unexpectedly strong U.K. election victory.

[Norton1973]

Royal Dutch Shell, RDS.A

Investors in the targets may be disappointed initially. After all, their positions tend to lose value in the wake of announcements (Shell shares lost 4%), especially if the deals are dilutive stock, as part of the Shell-BG deal is constructed. But if the deals do work as management promises, they can create value in the long run.

http://www.marketwatch.com/story/who-wins-who-loses-in-blockbuster-ma-deals-2015-04-09?siteid=yhoof2

[IL Padrino]

Hi,
I'm considering taking a position. Any ideas as to why the stock is dropping after this merger deal? Seems like good news.

[Norton1973]

Bought a good amount of Royal Dutch, i like the dividend too.

http://www.bbc.com/news/business-32213341

http://www.nasdaq.com/symbol/rds.a/dividend-history

http://seekingalpha.com/news/2415996-shell-says-it-will-sell-twice-as-much-lng-as-exxon-chevron-after-bg-deal

[DewDiligence]

Shell-BG.L merger is official: #msg-112522878.

[Porteño]

RDS/A Great buy at these prices.

[IguanaJoe]

They probably won't take BP on as Shell'a projects are executed more successfully. They can produce produce more profitably as BP has gotten way too encumbered.

[Miracleman 1]

Bloomberg reports oil glut widens

[DewDiligence]

Ok—that's somewhat more likely.

[Miracleman 1]

Restated: BP a buyout target for RDS

[DewDiligence]

I highly doubt that, LOL.

[Miracleman 1]

BP buyout target soon, imo

[DewDiligence]

Why invest in HES (rather than some other oil company?) Two reasons:

#msg-108029306

[Vincent Milner]

Shell urges Obama to end 40-year oil export ban

The chief executive of Royal Dutch Shell has urged Barack Obama to lift America's 40-year ban on oil exports.

DETAILS

[Vincent Milner]

Shell starts oil production from Bonga North West deep-water project

Shell’s deep-water subsidiary in Nigeria, Shell Nigeria Exploration and Production Company Ltd (SNEPCo), has announced it started oil production from the first well at the Bonga North West deep-water development off the Nigerian coast on Tuesday 5 August 2014.

DETAILS

[DewDiligence]

Shells logs solid 2Q14: #msg-104864603.