DESCRIPTION: The Shell Group (The Group) is a global group of energy and petrochemical companies with around 101,000 employees. The Group's businesses include oil and gas exploration and production, LNG, power generation, manufacturing, marketing and shipping of oil products and chemicals and renewable energy products. Shell's strategy seeks to reinforce the company's position as a leader in the oil and gas industry in order to provide a competitive shareholder return, while helping to meet global energy demand in a responsible way. Shares in the parent company, Royal Dutch Shell plc, are traded on stock exchanges in Europe and the USA.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Right now more companies are looking to diversify their portfolios and acquire more gas assets. . .Royal Dutch Shell just spent a few billion dollars to acquire a privately held natural gas company. I think many of the natural gas opportunities onshore are very attractive."
View Entire Article: John Licata: Oily Names with Gas Assets
Gudmund Halle Isfeldt, DnB NOR Markets
(07/26/10)
"We expect adj. Q2 EPS at $0.66 vs. $0.65 for consensus, and the DPS unchanged at $0.42. Royal Dutch Shell enjoys ramp-up from Sakhalin gas and BC-10. The Nigerian situation has improved considerable implying more output, especially from Soku. Downstream is expected to deliver good numbers. Royal Dutch Shell delivers Q2 numbers on Thursday 29 July, and we rate it Buy with a GBp 2,200 12-month price target.
Upstream - Net CCS profit is expected at $3.3bn vs. $3.2bn for consensus, mainly due to high scheduled maintenance activity, and in part due to the lack of a Malaysian unit dividend c.$0.15–0.20bn
Downstream - Net CCS profit is expected at $0.89bn vs. $0.92bn for consensus. Refining margins have held up well during Q2, improvements are seen both for refining and petrochemicals."
Lucas Herrmann, Deutsche Bank
(07/07/10)
"Cash Surge Coming—Two years ago we wrote that to our minds the question on Shell was no longer 'should I invest' but 'when do I invest?' With projects that account for almost 30% of Shell's upstream value commissioning over the next 6–9 mos., we revisit our investment case and find a well-diversified business that, under the direction of a new CEO and significant exploration success, looks even better placed to deliver a strong and sustainable uplift in cash flows and value. . .the recent pullback affords an excellent entry point: Buy.
The startup of a suite of its mega projects over the next 6–9 months combined with improved resource optionality at a time of enhanced investment discipline suggests to us a much improved financial outlook. . .with over 600kboe/d of new production concentrated on long-lived, plateau-type assets requisite of limited future investment the quality of, and visibility around Shell's production base looks set to rise markedly. The diversity of its portfolio also suggests a lower level of corporate risk than many in the industry."
"We continue to believe that Shell offers the most attractive combination of long-term growth and valuation support amongst Euro Oil majors—indeed, Shell is the only buy-rated major in our coverage. BP's problems in GoM continue to capture attention, allowing Shell to make 'under the radar' progress on its restructuring—particularly in downstream—and securing projects (e.g., Iraq gas deal). In addition, the situation appears to be creating new LT opportunities for Shell, particularly with national oil companies. A case in point of these opportunities is the reported possibility that Shell may enter the high-profile Shah gas project in the UAE or the new Ras Laffan cracker project in Qatar.
Reflecting the heavier than previously anticipated maintenance in 2Q, we are reducing our EPS by 2% in 2010E and 1% in 2011–12E. Our numbers put Shell on 7.5x 2010E earnings in line with a sector average of 7.8x. We believe that this valuation is compelling given Shell's long-term opportunity set."
Rick Mills, Ahead Of The Herd (06/25/10)
"Royal Dutch Shell stepped up its interest in U.S. gas shale properties with a $4.7 billion purchase of privately held East Resources, Inc. The deal includes a 650,000 net acreage position in the Marcellus shale, and 1.05 million net acres overall. Shell also acquired 250,000 net acres of mineral rights in the Eagle Ford shale play in South Texas. This brings Shell's total shale and tight-gas acreage acquired just this year in North America to 1.3 million acres."
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