Core Viewpoint - Oil stocks are experiencing a decline due to a combination of increased supply and slowing demand growth, as indicated by the International Energy Agency (IEA) report [3][5]. Group 1: Oil Prices and Market Dynamics - West Texas Intermediate (WTI) crude oil prices have fallen to approximately $70.60 per barrel, a 9% decrease from the previous week, with a significant drop of 4.5% occurring in one day [2]. - The IEA has revised its oil demand growth forecast for 2024 down to an increase of only 862,000 barrels per day (bpd), a decline of 4.5% from earlier estimates [3]. - Non-OPEC oil production is expected to rise by 1.5 million bpd this year and another 1.5 million bpd next year, contributing to an oversupply situation in the market [5]. Group 2: Demand Trends - China's oil demand is particularly weak, with consumption decreasing by 500,000 bpd year over year in August, marking the fourth consecutive month of declines [4]. - The overall demand growth is projected to be less than 1 million barrels per year for two consecutive years, while supply continues to increase, potentially leading to a price war among suppliers [5]. Group 3: Investment Opportunities in Oil Stocks - ExxonMobil, ConocoPhillips, and Shell are identified as potential investment opportunities, with price-to-earnings ratios of 14.8, 12.2, and 12.1 respectively [6]. - Analysts forecast single-digit growth rates for these stocks over the next five years: 6% for Exxon, 7% for Conoco, and 5% for Shell [7]. - Shell offers the highest dividend yield at 4%, followed by Exxon at 3.1% and Conoco at 2.8%, making Shell the most attractive option in terms of valuation and dividends [7][8].

Group 1: Shell's Refining Segment Performance - Shell's refining margins dropped 30% in Q3 compared to the previous quarter, primarily due to a decline in global demand for refined products [1] - The indicative refining margins for Shell decreased from $7.7 per barrel in the previous quarter to $5.5 per barrel [3] - The trading results for Shell's chemicals and oil products division are expected to be lower than the prior quarter, indicating a negative impact on financial performance [3] Group 2: Industry-Wide Impact - A global slowdown in economic activities is anticipated to negatively affect the third-quarter earnings of major energy firms, including Shell [2] - The third quarter saw a 17% decline in oil prices compared to the second quarter, which is expected to adversely impact the results of many major energy companies [5] - Exxon Mobil Corporation expects a reduction in upstream profit by $600 million to $1 billion due to the slump in oil prices and declining refining margins [5] Group 3: Natural Gas Market Dynamics - Natural gas prices have risen recently, which may positively affect the third-quarter results of upstream companies [6] - Companies like EQT Corporation are increasing production in response to rising natural gas prices after previously scaling back production when prices were low [6] Group 4: Shell's LNG Segment - Shell raised its production guidance for liquefied natural gas (LNG) from 6.8-7.4 million tons to 7.3-7.4 million tons for the quarter [4] - However, the trading results for the LNG segment are expected to remain flat sequentially [4]

Shell plc (SHEL) , a London-listed energy major, has signed a long-term naphtha supply deal with QatarEnergy. Per the terms of the agreement, QatarEnergy will supply 18 million metric tons of naphtha to Shell over a duration of 20 years. The deal is expected to begin in April next year. The head of QatarEnergy has highlighted that the naphtha supply agreement is its longest and largest supply deal to date. This is the latest one in a string of deals that QatarEnergy has signed with Asian and European partne ...

Following our June 2024 analysis, the company " Is On The Right Track ," today we are back to comment on Shell plc (NYSE: SHEL ) ( OTCPK:RYDAF ). In our Shell coverage, we highlighted how OPEC+ countries announced Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treat ...

Shell (SHEL, Financial) saw its shares rise by 1.56%, reaching $69.58. The company announced expectations of a significant decline in refining margins for the third quarter due to reduced global demand, which also impacted oil product trading earnings. Despite these challenges, Shell has raised its liquefied natural gas (LNG) production forecast for the third quarter from the previous range of 6.8-7.4 million tonnes to 7.3-7.7 million tonnes, with trading performance expected to remain stable compared to th ...

Core Insights - The company provides an updated outlook for Q3 2024, with expectations for various segments including Integrated Gas, Upstream, Marketing, Chemicals, and Renewables [1][2][3][4][5]. Integrated Gas - Adjusted EBITDA is projected with production between 920 - 960 kboe/d and LNG liquefaction volumes of 7.3 - 7.7 million tonnes [1]. - Underlying operating expenses (opex) are expected to be in the range of 1.1 - 1.3 billion [1]. Upstream - Adjusted EBITDA is anticipated with production between 1,740 - 1,840 kboe/d [2]. - Underlying opex is forecasted to be between 1.9 - 2.5 billion [2]. - Pre-tax depreciation is expected to be in the range of 2.3 - 2.9 billion, with a taxation charge of 2.0 - 2.8 billion [2]. Marketing - Adjusted EBITDA is projected with sales volumes between 2,750 - 3,150 kb/d [3]. - Underlying opex is expected to be in the range of 2.5 - 2.9 billion [3]. - Pre-tax depreciation is forecasted to be between 0.4 - 0.8 billion, with a taxation charge of 0.2 - 0.5 billion [3]. Chemicals and Products - The indicative refining margin is expected to be $5.5 per barrel [4]. - The chemicals sub-segment is projected to reflect a marginal loss in Q3 2024, with an indicative chemicals margin of $164 per tonne [5]. - Refinery utilization is expected to be between 79% - 83%, while chemicals utilization is forecasted at 73% - 77% [5]. Renewables and Energy Solutions - Adjusted earnings are expected to be in the range of (0.4) - 0.2 billion [5]. Corporate - Adjusted earnings are projected to be between (0.7) - (0.5) billion [5]. Cash Flow from Operations - Cash flow from operations (CFFO) is expected with tax paid in the range of 2.5 - 3.3 billion, derivative movements between (2) - 2 billion, and working capital ranging from 0 - 4 billion [6]. Guidance and Consensus - The 'Quarterly Databook' contains guidance on indicative refining and chemicals margins, with consensus for quarterly adjusted earnings and EBITDA expected to be published on October 23, 2024 [7].

The British energy giant, Shell plc (SHEL) , which entered into a joint venture (JV) with EDF-RE Offshore Development, LLC through its subsidiary Shell New Energies US LLC to create Atlantic Shores Offshore Wind, has received final approval from the federal agencies for two of its wind farms. Overview of the SHEL's JV The Atlantic Shores JV is a partnership between SHEL and EDF Renewables where both companies share a 50% stake in constructing two offshore wind farms. The wind farms, located 8.7 miles off th ...

Core Points - Shell plc announced the final results of its Exchange Offers, aiming to exchange up to $12 billion of Old Notes for New Notes [1][2] - The total aggregate principal amount of Old Notes validly tendered and accepted for exchange was $11,462,980,000, exceeding the Maximum Amount [3][7] - The settlement and issuance of the New Notes is expected to occur on October 8, 2024 [7] Exchange Offers Details - The Exchange Offers were conducted to migrate existing Old Notes from Shell International Finance B.V. to Shell Finance US Inc. to optimize the capital structure [2] - Acceptance of Old Notes was based on a priority level system, with levels 1 through 8 accepted, while levels 9 through 12 were not accepted due to not meeting conditions [3][5] - The aggregate principal amounts of each series of Old Notes accepted for exchange were detailed in a table, showing significant amounts for the highest priority levels [4][6] Financial Institutions Involved - The dealer managers for the Exchange Offers included Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., and Wells Fargo Securities, LLC [7] - D.F. King & Co. Inc. served as the exchange agent and information agent for the Exchange Offers [8]

Company Overview - Shell's stock closed at $68.46, reflecting a 0.94% increase from the previous trading session, outperforming the S&P 500's 0.17% loss [1] - Over the past month, Shell's stock has decreased by 1.01%, underperforming the Oils-Energy sector's gain of 0.85% and the S&P 500's gain of 1.25% [1] Financial Performance - The upcoming EPS for Shell is projected at $1.79, indicating a 3.76% decline compared to the same quarter last year [2] - Revenue is estimated to be $84.58 billion, which is an 8.43% increase from the prior-year quarter [2] - For the entire fiscal year, earnings are projected at $8.44 per share, with revenue expected to be $315.17 billion, reflecting changes of +0.48% and -2.48% respectively from the prior year [3] Analyst Estimates - Changes in analyst estimates for Shell are crucial as they reflect short-term business trends [4] - The Zacks Consensus EPS estimate has decreased by 1.61% in the past month, and Shell currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Shell's Forward P/E ratio is 8.04, which is a premium compared to the industry's average Forward P/E of 7.99 [7] - The PEG ratio for Shell is 1.56, aligning with the average PEG ratio for the Oil and Gas - Integrated - International industry [8] Industry Context - The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector, which has a Zacks Industry Rank of 226, placing it in the bottom 11% of over 250 industries [9]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [2][3] - Proactive focuses on various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive employs technology to enhance workflows and has a team with decades of expertise [3] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]