COP: Wow! September 20, 2021

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
• see social media comments at link;
  

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?

***********************************
Brownies

With that news, time for a brownie: