Shell Catalysts & Technologies’ Post

Are you navigating the dynamic landscape of growth opportunities or considering valuations for your businesses? ERCE's Commercial Services offer tailored support for your M&A endeavours and transaction financing needs, from initial red flag reviews to thorough due-diligence and CPR's. ERCE can also provide your company with a Fair Market Valuation in accordance with International Valuation Standards (IVS) and Valmin Code. Subscribe to ERCE's Energy Review and M&A Tracker reports for quarterly insights into global upstream deals, market conditions, and M&A trends. Stay informed and empowered to make confident business decisions. ERCE Energy Review Q1 2024 (Subscribe here). #commercial #mergersandacquisitions #mergersacquisitionsdivestitures #services #redflagreview #duediligence #cpr #competentpersons #fairmarketvaluation #defencedocuments #oil #gas #oilandgas #business

Oil and Gas EF Strategic Planning Report: ESG Financing Up 100%, LNG Infrastructure by 40%, and Shale Acquisitions Climb 30%. Understanding the sharp rise in these areas and other critical sector data can be found in our ongoing industry-focused report series. Read more here: https://lnkd.in/dC7SJ3di

DNB Markets would like to congratulate Aker BP ASA with its successful USD 1,500 million senior unsecured notes offering, consisting of a USD 750 million 10-year tranche and a USD 750 million 30-year tranche. With this transaction, Aker BP becomes only the second Norwegian corporate to ever issue senior notes with a 30-year tenor.   Aker BP is one of the largest independent oil and gas companies in Europe, with year-to-date production of around 450,000 boe per day and a current market cap of USD ~14bn. Aker BP is rated Baa2 (stable) by Moody’s, and BBB (stable) by both S&P and Fitch.   DNB Markets is pleased to have acted as Joint Bookrunner in connection with the offering. #oilandgas #energy #investmentbanking

ExxonMobil and QatarEnergy have announced a delay in their Golden Pass LNG joint venture, pushing their in-service date from 3Q24 to 1H25. This delay, despite construction progress, is expected to add downward pressure on natural gas pricing in 2024, highlighting the risks of LNG export uncertainties in 2025 and beyond. Despite falling prices, U.S. natural gas production has increased, with producers like Chesapeake Energy, Coterra Energy, and EQT Corporation hedging #NYMEX to protect against downside price risks. This suggests that production levels could be maintained in 2024 regardless of weak spot pricing, with expectations of rising #LNG demand applying upward pressure on prices in the medium term. However, with 97% of expected natural gas demand growth coming from LNG export facilities along the U.S. Gulf Coast, the sector faces uncertainty. The delay of Golden Pass LNG affects forecasted storage balances and market responses, with an anticipated 130 Bcf increase in storage by Summer 2024. Other LNG projects also face uncertainties. Venture Global LNG’s Plaquemines facility and Cheniere Energy, Inc.’s Corpus Christi LNG Stage 3 expansion have faced delays in FERC authorization, adding to the potential for further postponements in demand. Additionally, evolving policies from FERC and the DOE, like the denial of Lake Charles LNG's export license extension, present additional risks. In summary, the delay of key LNG projects like Golden Pass indicates a potential oversupply in the natural gas market. Producers need to be aware of these developments to avoid exacerbating the current oversupply situation and prolonging weak Henry Hub pricing. https://lnkd.in/gFrc9Un3

#controlledby American Oil & Gas. And long live forever the American Dream. The future of Clean Energy is looking brighter than ever. * * * * * * * #investor #investors #privateequity #publiccompany #ipo #crowdraise #fundraise #venturecapital #vc #familyoffice #ria #money #investments #capitalraise #oilandgas #oilindustry #oil #naturalgas #oilinvestments #oilprice #investing #investment #invest #realestate #texas #texasoil #cleanenergy #esg #hydrogen #privateplacement #regd #accreditedinvestor #registeredinvestmentadvisor #public

Shell PLC (LSE:SHEL, NYSE:SHEL) has been downgraded by equity analysts at investment bank UBS, who predict it will take longer for the #oil company to transition to low-carbon #energy than its peers.  UBS has downgraded its rating for the oil company from ‘buy’ to ‘neutral’, explaining that its #low-carbon strategy will take years to have an impact.   The bank cut its share price expectations for Shell to a target price of 2,600 pence per share, only marginally ahead of the company’s share price as of 12 January 2024 of 2,461p per share.   Analysts questioned how much value is in Shell’s low-carbon investments, as they are unlikely to represent more than 10% of group earnings this decade.   They added that the transition to low-carbon energy carried out by #Shell is taking longer than many of its peers.  More at #Proactive #ProactiveInvestors http://ow.ly/GvAh1059if7 #LSE #NYSE #SHEL

A target? An aim? An ambition? Or just a meaningless number? bp softened the language on its pledge to cut its 2030 oil and gas output in an effort to reassure investors over its energy transition strategy and narrow a gaping value gap with rivals. CEO Murray Auchincloss has not reversed a flagship target his predecessor Bernard Looney announced in 2020, before watering it down in 2023, for BP to reduce oil and gas output by around 25% between 2019 and 2030 to 2 million barrels of oil equivalent per day (boed). BP is the only major oil company to have reduction targets, and the pledge has concerned some investors. Speaking to Reuters on Tuesday after BP announced $2.7 billion in first quarter profits, Auchincloss said BP may overshoot or undershoot the 2030 target. "Two million (boed) is a decent number to stick by right now. Could it be higher? Yes. Could it be lower? Yes."

✅ Some oil & gas producers have significantly increased the average maturity of their debt. ✅ European oil producers are increasingly opting for hybrid or perpetual debts, paying a premium to issue debt that would not compromise their credit ratings. [These instruments can be treated as equity, thereby avoiding an increase in balance sheet leverage.] So, what does this mean for investors? Read more about this here : https://lnkd.in/grmvJjZh

We took a look at how much the carbon transition may change metrics for major oil & gas companies.   Low-carbon businesses, while not immaterial, are still likely to be a distant second to traditional hydrocarbon-based activities in terms of overall cash flow generation over the next 10 or so years.   In addition, we expect the ramp-up of low-carbon businesses among EMEA majors to be back-loaded as a cash flow contribution, only becoming material in 2027-2030 for a variety of reasons. The full analysis from colleagues Gabor Petroczi, Jakub Zasada, and Oliver Schuh, CFA, CAIA is at https://lnkd.in/e3qkfbKm; the free-to-air summary at https://lnkd.in/emt7mquP #energytransition #fitchoncredit #energiewende #esginvesting #investing

The world's top international oil companies (IOCs) have sold assets worth $290 billion from 2015 to 2023, in response to increasing investor and public demand for decarbonization. These IOCs are investing in low-carbon businesses, while divesting from high-carbon assets, with Shell leading the way with $71 billion in divestment proceeds. However, there's been a slowdown in their capital allocation to low-carbon sectors in 2023, and an increase in capital expenditure for the upstream segment, suggesting a recalibration of their transition strategies. Meanwhile, around 70% of these assets are being bought by smaller oil producers, potentially negating the positive environmental impacts of the divestments. The shift of big oil companies towards decarbonization and the energy transition represents a significant step in addressing climate change. However, the recent trend of these companies divesting their high-carbon assets to smaller, less climate-conscious producers raises a critical question: Are we truly making progress, or are we simply passing the buck? #ioc #divestments #decarbonization