Talk of a mega-merger between Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) is heating up.
SHEL expects former LNG exporters like Indonesia and Algeria to turn into importers, boosting global demand amid Asia's growing energy needs.
SHEL secures dismissal of a $58M lawsuit filed against it, affirming jurisdictional boundaries for international business disputes.
As SHEL doubles down on gas and LNG, a fifth of its shareholders question the climate and economic logic of its long-term energy transition plan.
SHEL's fossil fuel expansion draws new legal threats in Netherlands, claiming it violates a court order to cut carbon emissions.
SHEL operates the Perdido offshore development and holds a 35% working interest. The remaining 65% interest is held by Chevron and other partners.
Shell's potential acquisition of BP could offer substantial synergies and shareholder returns, though it's not confirmed yet. Shell's strong financials include $4.8 billion in quarterly income, manageable $41 billion net debt, and robust FCF and capital investments. Shell's diversified portfolio, especially in LNG, supports strong segment performance and profitable CFFO, even in a weak oil price environment.
SHEL generates cash flow from operations of $9.3 billion, returns $2.2 billion to its shareholders through dividends and spends $3.7 billion on capital projects.
SHEL is reportedly assessing a bold takeover of BP, as weak oil prices and activist pressure spark speculation of major energy sector consolidation.
Shell PLC (LSE:SHEL, NYSE:SHEL) isn't pouncing. At least, not yet.
Media reports said over the weekend that Shell may be looking to purchase rival BP. Observers say that could be the answer to lots of BP problems.
Increased supply from OPEC and the economic uncertainty of trade wars weighing on demand could be a brutal combination for energy prices.