Royal Dutch Shell Plc (NYSE:RDS-A) had a strong quarter, led by higher oil prices and a solid production performance which exceeded expectations.
Earnings increased to $4.21 billion, beating street estimates of $4.08 billion. Last year earnings for the quarter stood at $3.82 billion.
Gas and oil production on average increased by 3.11 barrels of oil equivalent a day, a five percent rise. Liquefied-natural-gas sales volumes were up 34% over last year in the same quarter.
Like their major competitors, Shell is increasing its exposure to natural gas, with a goal increasing it to slightly over 50 percent of total production by 2012.
Costs for the quarter beat target goals, coming in at $3.5 billion, a 15 percent gain over projections.
CEO Peter Voser, said the continues on its strategy of divesting of non-core assets, with a goal of increasing sales to $8 billion through 2011.
Approximately 40 percent of capital spending over the next several years will target the Asia Pacific region.
The Obama, Democrat oil moratorium in the Gulf of Mexico, has the most drastic effects on Shell, which has the most oil rigs affected by the drilling ban.
Chief Financial Officer Simon Henry said to investors he estimates a cost of $200 million after taxes for the full year.
With seven rigs shut down during the BP (NYSE:BP) Gulf crisis, Henry said they had a charge of $56 million for the second quarter. Voser has hinted he may attempt to get claim the capital from BP.
Showing posts with label Shell Oil. Show all posts
Showing posts with label Shell Oil. Show all posts
Thursday, July 29, 2010
Friday, May 28, 2010
Shell (NYSE:RDS-A) Spends $4.7 Billion for East Resources
Royal Dutch Shell PLC (NYSE:RDS-A) has laid out $4.7 billion to acquire privately held East Resources in order to get their hands on the 1.25 million acres in Marcellus Shale controlled by East Resources
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
Monday, May 3, 2010
BP (NYSE:BP) Chevron (NYSE:CVX) Shell (NYSE:RDS.A) Have Most Exposure in Gulf
BP (NYSE:BP) Chevron (NYSE:CVX) and Shell (NYSE:RDS.A) have the most exposure in the Gulf of Mexico when considering the impact of the explosion of the Deepwater Horizon oil rig and the fallout from it and how it will effect the financials in the future.
According to Deutsche Bank analyst Paul Sankey, the exposure of BP is the most at $37 billion, with Shell and Chevron behind them.
Costs will inevitably rise as a consequence of the disaster in that particular region, and while all companies will ultimately bear the brunt of those costs, these three oil companies will share the most.
Some of the expected cost increases could be increased royalties and/or taxes and more costly safety requirements.
BP will be the most effected, and it will cost them more to drill the area in the future while probably receiving less return on the oil.
According to Deutsche Bank analyst Paul Sankey, the exposure of BP is the most at $37 billion, with Shell and Chevron behind them.
Costs will inevitably rise as a consequence of the disaster in that particular region, and while all companies will ultimately bear the brunt of those costs, these three oil companies will share the most.
Some of the expected cost increases could be increased royalties and/or taxes and more costly safety requirements.
BP will be the most effected, and it will cost them more to drill the area in the future while probably receiving less return on the oil.
Monday, March 22, 2010
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) Coming Back to Texas?
Exxon Mobil, Chevron, ConocoPhillips and Texas
It has been a long time since major oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) had significant stakes in oil and gas in Texas, but with new technology, that could be about to change, as evidenced by the acquisition of XTO by Exxon Mobil, which may be the first of many as oil and gas producers look for new production sites.
To get an idea of how things have changed over the last 15 years or so, independent companies drilled 96 percent of the well in Texas in 2008, while the five major companies, which include Exxon Mobil, Chevron, ConocoPhillips, Shell and BP, only accounted the remaining 4 percent.
Some of the drilling spots left by the majors had significant reserves in them, but the cost of extracting it was prohibitive at the time, with prices not able to support it. Now with prices up and cost lowered, as well as new ways to extract the oil and gas, major companies may be revisiting Texas to get a piece of the significant pie that still remains under the ground there.
It has been a long time since major oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) had significant stakes in oil and gas in Texas, but with new technology, that could be about to change, as evidenced by the acquisition of XTO by Exxon Mobil, which may be the first of many as oil and gas producers look for new production sites.
To get an idea of how things have changed over the last 15 years or so, independent companies drilled 96 percent of the well in Texas in 2008, while the five major companies, which include Exxon Mobil, Chevron, ConocoPhillips, Shell and BP, only accounted the remaining 4 percent.
Some of the drilling spots left by the majors had significant reserves in them, but the cost of extracting it was prohibitive at the time, with prices not able to support it. Now with prices up and cost lowered, as well as new ways to extract the oil and gas, major companies may be revisiting Texas to get a piece of the significant pie that still remains under the ground there.
Saturday, February 27, 2010
Shell (NYSE:RDS.A), IBM (NYSE:IBM) Oil Fields
Shell and IBM Extending Life of Natural Gas and Oil Fields
Shell (NYSE:RDS.A) and IBM (NYSE:IBM) are partnering to look at ways they can extend the lives of oil and natural gas fields; the second deal Shell has entered into in about a month, as they also are working with Hewlett Packard in a separate deal for different purposes.
For IBM and Shell, IBM has developed software which is analytical and can simulate conditions in relationship to data collected on the ground in the physical locations of the fields.
The efficiencies created from the partnership will hep Shell move quicker and spend less as they get a more accurate picture of what is going on in the fields in order to recover natural gas and oil more efficiently.
Shell and IBM Extending Life of Natural Gas and Oil Fields
Shell (NYSE:RDS.A) and IBM (NYSE:IBM) are partnering to look at ways they can extend the lives of oil and natural gas fields; the second deal Shell has entered into in about a month, as they also are working with Hewlett Packard in a separate deal for different purposes.
For IBM and Shell, IBM has developed software which is analytical and can simulate conditions in relationship to data collected on the ground in the physical locations of the fields.
The efficiencies created from the partnership will hep Shell move quicker and spend less as they get a more accurate picture of what is going on in the fields in order to recover natural gas and oil more efficiently.
Shell and IBM Extending Life of Natural Gas and Oil Fields
Tuesday, January 26, 2010
ExxonMobil (NYSE: XOM) Lands Iraqi Contract
ExxonMobil (NYSE: XOM) landed a contract as lead in a consortium which will work on redeveloping and growing the West Qurna-1 field in southern Iraq, said the company in a press release.
Other members of the group include Oil Exploration Co., a state-owned Iraqi oil company, which will have 25 percent stake in the venture, as well as Shell, which will have a 15 percent stake in the oil production development. ExxonMobil will hold the remaining 60 percent stake in the venture.
Exxon added in their press release that they are in ongoing talks with government official from Iraq on partaking in "other opportunities to assist Iraq in developing the country's resources."
The next stage will be to find quality vendors and will recruit and help develop local workers for the deal.
ExxonMobil (NYSE: XOM)
Other members of the group include Oil Exploration Co., a state-owned Iraqi oil company, which will have 25 percent stake in the venture, as well as Shell, which will have a 15 percent stake in the oil production development. ExxonMobil will hold the remaining 60 percent stake in the venture.
Exxon added in their press release that they are in ongoing talks with government official from Iraq on partaking in "other opportunities to assist Iraq in developing the country's resources."
The next stage will be to find quality vendors and will recruit and help develop local workers for the deal.
ExxonMobil (NYSE: XOM)
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