Group 1: Company Performance - Shell's stock closed at $69.17, reflecting a +1.47% change from the previous trading day's closing, which lagged behind the S&P 500's 1.7% gain [1] - Over the past month, Shell's shares have decreased by 4.38%, while the Oils-Energy sector lost 2.52% and the S&P 500 gained 1.27% [1] - The upcoming EPS for Shell is projected at $1.79, indicating a 3.76% decline compared to the same quarter last year, with revenue expected to be $86.4 billion, up 10.75% year-over-year [2] Group 2: Earnings Estimates - Full-year Zacks Consensus Estimates for Shell predict earnings of $8.64 per share and revenue of $314.07 billion, representing year-over-year changes of +2.86% and -2.82%, respectively [3] - Recent modifications to analyst estimates for Shell are crucial as they reflect changing near-term business trends, with positive changes indicating analyst optimism [4] Group 3: Valuation Metrics - Shell has a Forward P/E ratio of 7.89, which is a premium compared to the industry's average Forward P/E of 7.74 [6] - The current PEG ratio for Shell is 1.54, matching the average PEG ratio for the Oil and Gas - Integrated - International industry [7] Group 4: Industry Context - The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 232, placing it in the bottom 9% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Shell plc is conducting exchange offers to migrate existing Old Notes from Shell International Finance B.V. to Shell Finance US Inc. to optimize its capital structure and align indebtedness with its U.S. business [2] Group 1: Exchange Offers Details - As of September 18, 2024, a total of $14.32 billion in Old Notes had been validly tendered for exchange [5] - The Maximum Amount for the exchange has been increased from $10 billion to $12 billion [1] - An Early Participation Premium of $30 principal amount of New Notes will be offered to all holders of Old Notes validly tendered by October 3, 2024 [6] Group 2: Notes Information - The exchange involves twelve series of Old Notes, with significant amounts tendered including $2.34 billion for 4.375% Guaranteed Notes due 2045 and $1.26 billion for 2.750% Guaranteed Notes due 2030 [4][5] - The total aggregate principal amount outstanding for the Old Notes is approximately $14.32 billion [5] Group 3: Timeline and Conditions - The Expiration Time for the Exchange Offers is set for 5:00 p.m. New York City time on October 3, 2024, unless extended [6] - New Notes are expected to be issued on October 8, 2024, if the Exchange Offers are not extended [7] - The consummation of the Exchange Offers is conditional upon the declaration of effectiveness of the Registration Statement by the SEC [9]

Shell (SHEL) closed at $67.45 in the latest trading session, marking a +0.7% move from the prior day. This move outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%. Prior to today's trading, shares of the oil and gas company had lost 8.46% over the past month. This has lagged the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 4.86% in that time. Analysts and investors alike will be keeping a cl ...

Shell plc (SHEL) , the oil and gas giant, is planning to cut down its workforce by 20%. The job cuts are anticipated to affect the oil and gas exploration staff, per a report by Reuters. The report also mentioned that the company's exploration and development and subsurface divisions will undergo restructuring and the effect of the layoffs will be felt in Shell's offices in Houston and The Hague. The layoffs may also affect its offices across Britain, albeit to a lower extent. After Shell's new CEO, Wael Sa ...

Press Release September 5, 2024 Shell plc Commences Any and All Exchange Offers of Up To Twelve Series of USD Notes Issued by Shell International Finance B.V. Shell plc ("Shell") (LSE: SHEL) (NYSE: SHEL) (EAX: SHELL) today announced the commencement of offers to exchange (the "Exchange Offers" and each, an "Exchange Offer") any and all validly tendered (and not validly withdrawn) and accepted notes up to a maximum aggregate principal amount of $10 billion (the "Maximum Amount") of twelve series of notes iss ...

Shell plc (SHEL) has signed a 10-year supply agreement for liquefied natural gas (LNG) with the Turkish stateowned energy firm BOTAS. Per the terms of the agreement, Shell will supply 4 billion cubic meters of LNG per annum to Turkey, starting 2027. The LNG supplied to Turkey will be sourced from the British energy major's U.S. and global energy assets. Before the discovery of the Sakarya gas field in the Black Sea, Turkey was heavily reliant on imported natural gas. Despite this discovery and increased cap ...

Shell plc's (SHEL) subsidiary, Shell USA, Inc., has announced that its both units, Shell Pipeline Company LP and Triton West LLC, will sell the entire stake in the Sinco pipeline system and Colex terminal to a subsidiary of Edgewater Midstream LLC (Edgewater), Houston, TX-based midstream company. This strategic divestiture is aligned with Shell's ongoing efforts to simplify its portfolio and focus on more value-driven projects with lower emissions. The sale is subject to regulatory approval and expected to ...

Shell plc (SHEL) is facing challenges in its efforts to divest its stake in the Shell Petroleum Development Company of Nigeria Limited to Renaissance. The Nigerian Upstream Petroleum Regulatory Commission ("NUPRC") has rejected Shell International's proposal to sell its onshore assets in Nigeria to Renaissance. The deal was valued at $2.4 billion during the time of the announcement. However, the value has reportedly dropped to $1.3 billion at present. Per the Petroleum Industry Act, the regulatory commissio ...

Core Viewpoint - Shell reported a solid H1 performance with increased production, particularly in gas, and improved chemical margins, supported by a $2-3 billion structural cost savings plan aimed at enhancing efficiency and streamlining operations [1][6]. Production and Financial Performance - H1 profit decreased by 5% due to lower prices, despite a 2% increase in average daily production to approximately 2.9 million barrels of oil equivalent per day (Mboe) [2][3]. - Liquids production slightly declined, with a liquids mix falling to 52% [2][3]. - LNG production remained stable at around 14.53 million tonnes (Mt) [2][3]. - Adjusted earnings for H1 2024 were $14.0 billion, down 5% from H1 2023, but earnings per share increased by 2% to $4.38 [2][3]. Cost Management and Capital Expenditure - Shell achieved approximately $1.7 billion in structural cost savings as of H1 2024, with a target of $2-3 billion by 2025 [6][7]. - Cash capital expenditures for H1 were $9.2 billion, about 21% lower than the previous year, with full-year guidance maintained at $22-25 billion [4][5]. Strategic Acquisitions and Growth Initiatives - The acquisition of Pavilion Energy is expected to enhance LNG trading capabilities, with a contracted supply volume of about 6.5 million tonnes per year, supporting a projected 20-30% LNG growth through 2030 [2][6]. - New projects in Oman, the Gulf of Mexico, Brazil, and Malaysia have contributed to an additional 250,000 barrels of oil equivalent per day (kboe/d) of production, with a target of 500,000 kboe/d by the end of 2025 [7][9]. Future Outlook - Shell's focus on low-risk, high-margin projects is anticipated to improve barrel margins, with a majority of upcoming completions being liquids-rich developments [9][10]. - Namibia's potential reserves of approximately 4.9 billion barrels of oil equivalent (bboe) could play a significant role in extending production levels into the next decade [10].

Investment Rating - The report maintains a positive outlook on Shell, with an expectation of strong performance in the upcoming quarters, particularly due to robust growth in upstream and marketing sectors [1][2]. Core Insights - Shell's adjusted net income for Q2 2024 is projected at $6.293 billion, exceeding market expectations of $5.980 billion, driven by strong performance in upstream and marketing divisions [1][2]. - The company has reaffirmed its capital expenditure guidance for FY 2024 at $22-25 billion, slightly below market expectations of $22.8 billion [1]. - A new share buyback program of $3.5 billion has been announced, expected to be completed by Q3 2024 [1]. Summary by Sections Overall Performance - Shell reported an adjusted net income of $6.293 billion for Q2 2024, a 24% increase year-over-year from $5.073 billion in Q2 2023, and a decrease of 19% from $7.734 billion in Q1 2024 [2][3]. - The company's revenue for Q2 2024 was $74.463 billion, showing a 3% quarter-over-quarter increase and no change year-over-year [3]. Upstream Business - The upstream segment's adjusted net income reached $2.336 billion, a 21% increase quarter-over-quarter and a 39% increase year-over-year [2][3]. - Oil and gas production was reported at 1,783 thousand barrels of oil equivalent per day, a 5% decrease from the previous quarter [2]. Marketing Business - The marketing segment achieved an adjusted net income of $1.082 billion, a 39% increase quarter-over-quarter and a 21% increase year-over-year [2][3]. - Sales volume expectations for Q3 2024 remain stable at 2,700-3,200 thousand barrels per day [2]. Chemicals and Products - The chemicals and products segment reported an adjusted net income of $1.085 billion, a 33% decrease quarter-over-quarter due to declining refining margins [2][3]. - Refinery utilization was at 92%, with expectations for Q3 2024 dropping to 83-91% [2]. Renewable Energy and Solutions - The renewable energy and solutions segment reported an adjusted net loss of $187 million, a significant decline attributed to seasonal demand fluctuations [2][3].