Shell completes sale of Permian business to ConocoPhillips



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HOUSTON, December 1, 2021 / PRNewswire / – Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, completed the sale of its Permian stake to ConocoPhillips for $ 9.5 billion in liquid. The agreement covers the sale of Shell 225k net acres and existing production of approximately 175,000 equivalent barrels per day.

As stated in the announcement of the agreement for the sale of Shell’s Permian business, this agreement reflects Shell’s emphasis on value versus volume as well as disciplined capital management. This transaction was made possible by the exceptional operational performance of the Permian team and provides excellent value to our shareholders through expedited cash delivery and additional distributions.

As previously announced, the cash proceeds from this transaction will be used to fund $ 7 billion in additional distributions to shareholders, the remainder being used to further strengthen the balance sheet. The first tranche of additional distributions to shareholders will take the form of share buybacks up to $ 1.5 billion and will start on December 2, 2021. The form and timing of the distribution of $ 5.5 billion will be announced in early 2022. These distributions are in addition to our distributions to shareholders in the range of 20-30% of operating cash flow.

Notes to Editors

  • At September 20, 2021, Shell and ConocoPhillips announcement that they had reached an agreement for ConocoPhillips to acquire Shell’s business in the Permian.
  • The transaction resulted in an after-tax gain of $ 2.4 To $ 2.6 billion after adjustments.
  • The majority of the Permian workers based in Midland and many Houston-Based employees have been offered employment by ConocoPhillips with effect at closing in accordance with the terms and conditions of the transaction.
  • Shell is a leading US energy company with interests in 50 states and employs over 15,000 people. The portfolio of companies and interests operated by Shell in the United States includes petroleum, natural gas, petrochemicals, gasoline, lubricants and other refined products, as well as renewable energies such as wind, solar and mobility options such as electric vehicle charging and hydrogen. In the United States, Shell is also investing in an integrated electricity company that will provide electricity to millions of homes and businesses.

Warning

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this advertisement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience when references are made to Royal Dutch Shell plc and its subsidiaries in general. Similarly, the words “we”, “our” and “our” are also used to designate Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used when it is not useful to identify the particular entity or entities. “Subsidiaries”, “Subsidiaries of Shell” and “Shell companies” as used in this announcement refer to entities over which Royal Dutch Shell plc directly or indirectly holds control. Unincorporated entities and arrangements over which Shell exercises joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell exercises significant influence but without control or joint control are called “associates”. The term “Shell Interest” is used for convenience to denote the direct and / or indirect interest held by Shell in an unincorporated entity or partnership, after exclusion of any third party interest.

This announcement contains forward-looking statements (within the meaning of the United States Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and business of Shell. All statements other than statements of historical fact are, or may be considered, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed. or implied in these statements. Forward-looking statements include, among other things, statements regarding Shell’s potential exposure to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by the use of terms and expressions such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “objectives” , “Intend to”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, ” should “,” target “,” will “and similar terms and expressions. There are a number of factors which could affect Shell’s future operations and could cause these results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) fluctuations in the prices of crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and competition in the industry ustria; (g) environmental and physical risks; (h) the risks associated with identifying suitable properties and potential acquisition targets, and successfully negotiating and completing such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments, including regulatory measures relating to climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with government entities, delays or advances in project approval and delays in reimbursement of shared costs; (m) the risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) epidemic; and (n) changes in trading conditions. No guarantee is given that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell plc Form 20-F for the year ended December 31, 2020 (available at www.shell.com/investors and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be taken into account by the reader. Each forward-looking statement speaks only as of the date of such announcement, December 1, 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertakes to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those declared, implied or inferred from the forward-looking statements contained in this announcement.

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We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly forbids us from including in our documents with the SEC. Investors are urged to carefully review the disclosure in our Form 20-F, File No. 1-32575, available on the SEC website. www.sec.gov.

LEI number of Royal Dutch Shell API: 21380068P1DRHMJ8KU70

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