Updates
September 21, 2021: Shell says it will return $7 billion back to shareholders in terms of dividends (and share buybacks). If one does the math, it's less than a $2/share and I doubt "we" will see more than an additional 50 cents/share in dividend. In the big scheme of things, this won't amount to a hill of beans for most mom-and-pop retail investors.
Original Post
Wow! Shell confirms sale of Permian Basin assets to COP for $9.5 billion. In cash.
- one of the largest recent deals in the shale patch;
- Shell will use cash proceeds to fund $7 billion in additional shareholder distributions
- the rest to strengthen the balance sheet
- bottom line: doesn't sound good for Shell
Reuters link:
- Shell exits the largest US oilfield as it shifts to renewable energy
- for COP: second sizable acquisition in a eyar
- acquires 225,000 net acres
- $9.5 billion / 225,000 net acres = $40,000 / acre
- also announced an increase in its quarterly cash dividend; a 7% cash increase;
- Shell sold its Appalachian gas assets last year
- in western hemisphere, what does Shell have left?
- GoM; and,
- a joint venture in California with XOM -- although it's been reported that Shell wants out of that venture also;
- California intends to ban all oil production;
OXY: apparently has put in a counter-bid. Apparently, $40,000 / acre way too cheap for OXY. At twitter, but probably satire.
Shell: a shell of itself ...
Montney? Tracked here. A natural gas play.
Vaca Muerta? Tracked here. Dead. As in "dead cow." It will live up to its name.
Seven sisters has become:
- BP
- Chevron
- XOM
... and that's it. Shell is gone.
Total (Total Energies/TTE) and ENI and that's about it.
COP? Natural gas, not oil?
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Brownies
With that news, time for a brownie:
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