Shell plc

Shell warned that the global energy market is running through its remaining cushions after losing roughly 36 million metric tons of LNG and 1.6 billion barrels of crude oil and condensates since the Middle East conflict began. The company's chief economist said weaker Chinese demand, inventory drawdowns, flexible shipping, spare pipeline capacity and rising production from the Americas helped soften the first wave of disruption, but that protection is thinning. Even if key energy routes reopen, damaged infrastructure and supply-chain bottlenecks could keep the market tight well into 2027, while Europe heads toward winter with unusually low gas inventories. Shell's LNG portfolio, shipping reach and global trading network could gain strategic value in that environment, though high prices cut both ways, as Asian buyers have already shifted toward coal, nuclear power and domestic gas. Shell's U.S. shares were nearly flat at $95.51, a 15.21% premium to a GF Value estimate of $82.90.

Shell closed at $98.95, up 2.59% from the previous session, outpacing a 0.45% decline in the S&P 500, a 0.63% drop in the Dow and a 0.78% fall in the Nasdaq. Ahead of its upcoming earnings release, analysts expect Shell to post earnings of $2.85 per share, a 53.23% year-over-year increase, on revenue of $88.96 billion, up 26.34% from the same quarter last year. For the full year, the Zacks Consensus Estimates anticipate earnings of $10.84 per share and revenue of $382.93 billion, shifts of +72.06% and +39.89% respectively from last year. Over the last 30 days the Zacks Consensus EPS estimate has risen 4.58%, and Shell currently carries a Zacks Rank of #3 (Hold). The stock trades at a Forward P/E of 8.9, in line with its industry average, and a PEG ratio of 0.82 versus an industry average of 0.68.

Shell plc has signed a new multi-year sale and purchase agreement to supply liquefied natural gas to MET International, the trading and wholesale arm of Swiss-based MET Group, drawing on Shell's U.S. LNG portfolio. The deal builds on a 10-year free-on-board LNG purchase agreement the two companies signed in July 2024 and a memorandum of understanding signed earlier this year in Washington, D.C., to explore additional LNG supply and trading opportunities aimed at enhancing Europe's energy security; the new SPA is one outcome of that cooperation. MET has emphasized the growing importance of U.S. LNG for its business, noting that contracts indexed to the U.S. Henry Hub benchmark can offer an alternative to European gas benchmarks and help diversify pricing structures. Shell says its LNG business was involved in around 16% of global LNG demand in 2025 and holds approximately 44 million tons of equity LNG capacity, and it expects global LNG demand to rise around 65% from 2025 levels to nearly 700 million tons annually by 2050, with U.S. exports projected to nearly double by 2030. Financial terms and LNG volumes were not disclosed.

Ultra-high-net-worth investors and family offices are increasingly moving into oil and gas assets, drawn by high energy prices triggered by the war in Iran and rapidly growing energy demand from the AI boom. According to Bank of America's Andrew Dock, family offices are taking a keen interest in infrastructure assets such as pipelines and export facilities, telling CNBC that this is "not a cyclical play" but "a structural shift." The shift comes as oil and gas merger and acquisition spending reached a two-year high in the first half of 2026, according to Wood Mackenzie, led by Devon's $25 billion merger with Coterra Energy and Shell's $16 billion acquisition of ARC Resources. Cody Carper, a partner at law firm Baker Botts, told CNBC that family offices can still carve out niche investments, such as a $30 million non-operated asset that is undervalued because few buyers focus on that band of value. Commodity trading houses and hedge funds are also crossing over into physical U.S. shale assets, with Swiss trader Gunvor Group in early-stage talks to acquire natural gas assets in the Haynesville shale basin from Silver Hill Energy Partners for $1.2 billion to $1.5 billion, while Ken Griffin's Citadel expanded into upstream energy last year by acquiring Paloma Natural Gas in a deal valued at about $1.2 billion.

Oil prices jumped Monday after Saudi Arabia closed its East-West pipeline following drone attacks by Yemen's Houthis, with Brent North Sea Crude up 3.0 percent at $107.71 per barrel and West Texas Intermediate up 2.9 percent at $102.90. US average diesel prices hit a new record high above $6.0 a gallon, reaching $6.23, as markets priced a 92 percent probability of a Federal Reserve rate hike on Wednesday. Anthropic CEO Dario Amodei called on AI firms to slow development of the technology, adding to a selloff in tech stocks that sent Tokyo-listed SoftBank down more than 10 percent and chipmaker Kioxia down more than six percent, with SK hynix, Samsung and TSMC also sharply lower. European markets were mostly lower around midday, though London's FTSE 100 rose 0.7 percent to 10,727.07 points on gains for Shell and BP, while Paris's CAC 40 fell 0.8 percent and Frankfurt's DAX lost 0.5 percent. Russ Mould, investment director at AJ Bell, said oil and AI fears were causing a double headache for investors, compounding inflation worries stoked by last week's elevated US consumer price index data.

Shell plc is reshaping its U.S. power portfolio through two natural gas-fired generation transactions, with its subsidiary Shell Energy North America (U.S.), L.P. agreeing to acquire 100% equity interest in Hunlock Creek Generating LLC while selling its interests in RISEC Holdings, LLC to Constellation Energy Generation, LLC for $715 million. The Hunlock acquisition adds 169 megawatts of natural gas-fired capacity in Pennsylvania, comprising a 125-MW combined-cycle plant and a 44-MW simple-cycle peaking plant, and strengthens SENA's presence in the PJM Interconnection market, which spans 13 states and the District of Columbia and serves more than 65 million people. The RISEC sale covers a 609-MW, two-unit combined-cycle gas turbine plant serving the New England market, where SENA has held an energy conversion agreement for the plant's full output since 2019; that agreement terminates upon closing. Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027, with Shell expecting the Hunlock acquisition to generate returns above the investment requirements set for its power business at its 2025 Capital Markets Day and the RISEC sale to produce a significant gain. Andrew Smith, Shell's president of Trading & Supply, said the moves reflect selectively investing in assets that strengthen market position while remaining prepared to realize value when conditions are favorable.

Australia will relax a proposed rule that would have forced natural gas exporters to reserve 20% of their production for the local market, replacing the fixed requirement with an annual cap based on demand. Energy Minister Chris Bowen said the country's energy regulator will set the amount each year, based on a rolling five-year demand forecast with an added 10% supply buffer. Previously, the government had said it would require exporters to set aside 20% of annual output with no allowance for flexibility. The start date will also be pushed back by six months to January 1, 2028, with existing export contracts unaffected by the policy, and the bill is expected to be submitted to parliament later this year. The three LNG export projects on Australia's east coast operated by Santos, Shell, and Origin Energy would be most affected by the new reservation scheme, according to Reuters, with Santos operating the Gladstone LNG plant in Queensland and, of the three main east coast producers, being the only one that does not supply significant volumes to the domestic market.

Shell plc signed an agreement to raise its ownership of Tri Star Energy, LLC from 33% to 100%, taking full control of the regional fuel and convenience retailer. The deal would add 320 company-owned fuel and convenience locations across Tennessee and neighboring states, plus supply agreements with 552 dealer-owned locations. After closing, Shell expects its Mobility & Convenience US portfolio to include nearly 550 company-owned convenience sites and supply agreements with approximately 650 dealer-owned locations. Completion is expected by the end of 2026, subject to regulatory clearance and other closing conditions, and Tri Star will be operated by Texas Petroleum Group, LLC, a wholly owned subsidiary of Shell Mobility & Convenience US LLC. Shell did not disclose the consideration, Tri Star-specific EBITDA, expected incremental cash flow, capital requirements or synergy assumptions, saying only that the projected internal rate of return exceeds the marketing business's hurdle rate, which was also not disclosed.

Oil prices crossed back over $100 per barrel on Wednesday for the first time since July, driven by escalating geopolitical tensions. US Central Command struck five Iranian crude oil tankers, the second such attack in two days, while Houthi attacks in Saudi Arabia and the Russia-Ukraine war also threaten supply. Although crude oil is still flowing through pipelines and dark transfers, with Strait of Hormuz volumes at two-thirds of pre-war levels, refineries are already running near capacity, and Ukrainian strikes on Russian refineries have cut into diesel exports. As a result, US gasoline prices hit all-time highs for Labor Day, and diesel prices are approaching $6 for the first time ever. The impact on consumers could be twofold: higher inflation may push the Fed to hike rates, and consumers may adapt by reducing travel and spending.

Shell plc announced that on 08 September 2026 it purchased a total of 725,000 shares for cancellation as part of its existing share buy-back programme, which was previously announced on 30 July 2026. The purchases were executed on the London Stock Exchange and Euronext Amsterdam, with 500,000 shares bought on the LSE at a volume-weighted average price of £35.0838 per share, and 225,000 shares bought on XAMS at a volume-weighted average price of €40.9665 per share. Goldman Sachs International is making trading decisions independently of the Company for the programme, which runs from 30 July 2026 to 23 October 2026. The buy-back is conducted under the Company's general authority and in accordance with UK and EU market abuse regulations.

Kazakhstan has suspended efforts to collect a $5.06 billion environmental fine from the Kashagan oil consortium, according to Interfax, easing a threat to Exxon Mobil, which holds a 16.81% stake in the project. Exxon's shares traded virtually flat at $159.55. The fine, which Exxon's share would theoretically amount to about $851 million, represents less than 5% of the company's latest quarterly free cash flow of $17.2 billion. However, the consortium, which also includes Shell and TotalEnergies, continues to reject Kazakhstan's sulfur-storage claims, and international arbitration keeps the wider dispute alive. The suspension buys time but does not eliminate political risk for Kashagan's expansion.

Shell climbed 1.32% to 34.83 Monday, outperforming a softer broader market as Brent crude pushed above $97 per barrel and Middle East tensions heightened supply concerns. The integrated oil and gas giant reported second-quarter adjusted earnings of $9.8 billion and operating cash flow exceeding $21 billion, with net debt falling to roughly $42 billion. Management also launched a new $3 billion share-buyback program. However, Shell's shares trade 13.84% above its GF Value estimate of $81.65, indicating a premium valuation that may already reflect optimism about commodity prices.

Deutsche Bank is warning investors that the calm outlook for inflation, interest rates, and economic growth may rest on unstable assumptions, as global bond yields reach multiyear highs while equities and credit reflect resilience. The bank's latest dislocations report argues that this combination is becoming harder to defend as energy, food, and commodity costs climb. Brent crude traded around $96 a barrel, up from $82.49 a month earlier, amid intensified disruption around the Strait of Hormuz, while European natural-gas futures hit their highest level since early 2023. Markets still expect energy costs to decline over the coming year, with the six-month Brent contract near $83 versus $96.20 for front-month oil, effectively assuming shipping normalizes. Deutsche Bank also notes that investors underestimated the Federal Reserve's hawkishness in four of the past five years, and that August's ISM services prices-paid measure reached a four-year high, historically consistent with U.S. inflation above 5%.

The U.K. government is expected to approve development of the Jackdaw gas field in the North Sea later this month, according to the BBC and other reports. Energy Secretary Miatta Fahnbulleh is also expected to approve the Rosebank oil field in the coming months, The Guardian reported. Both fields are operated by Adura, a joint venture between Shell and Equinor, with Ithaca Energy owning 20% of Rosebank. The projects were originally approved in 2022 but were blocked by a Scottish court ruling after environmental groups argued their climate impact was not fully considered. Jackdaw and Rosebank are relatively small, with forecast peak production of 40,000 and 70,000 barrels of oil equivalent per day, respectively. Adura says Jackdaw could supply 6% of the U.K.'s total gas output at its peak, while environmental groups estimate it will meet just 2% of U.K. gas demand over its 10-year lifetime. The joint venture also projects the two fields will generate £1.4 billion, or about $1.9 billion, in tax revenues by 2029.

US diesel prices hit an all-time high on Friday, climbing to $5.85 per gallon in the retail market, surpassing the previous record of $5.816 set in June 2022. The surge is driven by conflicts in Iran and Russia-Ukraine, which have disrupted supply from the Middle East and Russia, regions that together account for roughly a third of global diesel exports. US stockpiles of distillate fuels are at record lows for this time of year, and East Coast inventories are at all-time lows just as winter heating demand begins. President Trump has pressed refining executives to boost production, but global refiners like Marathon Petroleum and Shell are already running near full capacity. Diesel prices have jumped about 40% since July 18, while oil prices have risen only 5% from their low, raising concerns about broader economic impacts.

China Petroleum & Chemical Corporation, known as Sinopec, joined the International CCUS Technology Innovation Cooperation Organization, Kazakhstan's Ministry of Energy, and the Institute of New Materials and Energy Technologies at Nazarbayev University to launch the Initiative for Cooperation on Low-Carbon Energy Development. Announced at the 2026 International CCUS Technology Conference in Astana, the initiative promotes collaboration on CCUS technologies and standards and greater exchange among professionals. Sinopec has built China's first 100-kilometer dense-phase CO2 pipeline and operates the country's first integrated CCUS demonstration project with an annual capacity of one million metric tons. It is also conducting a joint study with Shell, BASF, and China Baowu on China's first open-access CCUS cluster at the 10-million-metric-ton scale, and preparing a one-million-metric-ton demonstration project at Shengli Oilfield. The International CCUS Technology Innovation Cooperation Organization, established in July 2025, has 60 founding members from more than 20 countries and regions.

Shell plc has agreed to acquire a 30% interest in BP's Conifer exploration prospect in the Gulf of America and a 50% stake in the Tupinambá exploration block in Brazil's Santos Basin, with BP retaining operatorship of both. The Conifer prospect, operated by BP, consists of five leases, and Shell will enter as a 30% partner, while BP keeps 70%. The Tupinambá block, secured by BP in December 2023 under Brazil's second Production Sharing Permanent Offer cycle, is expected to begin drilling soon, and the Conifer well is scheduled for 2027. These partnerships allow BP to share development risks while aligning with its capital discipline, and give Shell exposure to potentially significant discoveries in two prolific regions. Both companies currently hold a Zacks Rank #3, while Valero Energy and Galp Energia are ranked #1 and #2, respectively.

Shell plc announced that on 03 September 2026 it purchased a total of 1,641,716 shares for cancellation under its existing share buy-back programme, which was previously announced on 30 July 2026. The purchases were executed on the London Stock Exchange and Euronext Amsterdam, with 1,080,997 shares bought on the LSE at a volume-weighted average price of £34.2843 per share, and 560,719 shares bought on XAMS at a volume-weighted average price of €39.9699 per share. Goldman Sachs International is making trading decisions independently of the Company for the programme, which runs from 30 July 2026 to 23 October 2026. The buy-back is conducted in accordance with UK and EU regulations, and the shares are being cancelled.

Piper Sandler has lifted its price target on Chevron to a Street-high $243 from $207, part of a broader round of estimate increases across its integrated oil and refiner coverage driven by stronger crude and refining margins. The firm kept its overweight rating on the stock. Analyst John Royall raised the third-quarter Brent forecast to $88 per barrel from $80, and the fourth-quarter forecast to $90, citing continued supply issues on the diesel side lasting well into next year. The changes pushed Piper Sandler's estimates about 12% and 27% ahead of Wall Street's 2026 third-quarter and 2027 EBITDA forecasts for the majors, and roughly 15% and 36% above consensus for the refiners. Piper Sandler also lifted price targets for BP to $46, MPC to $462, PSX to $264, SHEL to $100, TTE to $93, VLO to $435, and XOM to $185.

Shell plc has completed its acquisition of ARC Resources Ltd., strengthening its position in Canada's Montney basin and adding significant long-duration oil and gas production. The deal, effective September 2, 2026, received all approvals and adds about 370 thousand barrels of oil equivalent per day, supporting a production growth rate of approximately 4% through 2030. ARC shareholders receive C$8.20 cash and 0.40247 Shell shares per share, valuing the equity at about $13.9 billion, with an enterprise value of approximately $16.5 billion including assumed debt. The transaction is expected to generate double-digit returns and become accretive to free cash flow per share by 2027, while expanding Shell's LNG opportunities in Canada.

BP and Shell have agreed to partner on two deepwater exploration opportunities, with Shell taking a 50% interest in the Tupinambá block offshore Brazil and a 30% interest in five U.S. Gulf leases containing the Conifer prospect. BP will retain a 50% stake in Tupinambá and a 70% interest in Conifer and will remain operator of both, the British energy major said. Financial terms were not disclosed. BP expects the first exploration well at Tupinambá to spud soon, while drilling at Conifer is planned for 2027. The Brazilian transaction remains subject to regulatory approvals. Tupinambá is located in the pre-salt Santos Basin, approximately 400 kilometers off the Brazilian coast in water depths of around 2,300 meters. BP secured the block in December 2023 through Brazil's second production-sharing Permanent Offer cycle and was the sole bidder. The deal expands Shell's position in Brazil's offshore while allowing BP to share costs and risks. In the U.S. Gulf, Shell will acquire 30% interests in five leases covering the Conifer prospect in the deepwater Paleogene play, with BP obtaining four leases through Lease Sale 259 in 2023 and the fifth through the BBG-1 lease sale in February 2026. Conifer is located in the Keathley Canyon area roughly 250 miles southwest of New Orleans and near BP's Kaskida development, which BP sanctioned in 2024 as its first Paleogene development.

Shell plc is set to acquire the remaining 67% stake in Tri Star Energy, increasing its ownership from 33% to 100%, in a deal that deepens its U.S. fuel retail strategy. The transaction, with undisclosed financial terms, will give Shell full ownership of 320 fuel and convenience retail sites across Tennessee and nearby states, plus supply agreements covering 552 dealer-owned locations. This acquisition is part of Shell's plan to focus growth investment on key markets, with the U.S. being a priority for its Mobility & Convenience business, which will allocate 80% of growth capital expenditure to 10 key markets. Shell projects the investment will generate an internal rate of return above its marketing business hurdle rate. Following the deal, Shell's U.S. Mobility & Convenience portfolio will include nearly 550 company-owned sites and supply agreements for approximately 650 dealer-owned locations, more than doubling its company-owned footprint. The transaction is expected to close by the end of 2026, subject to regulatory approval, and Tri Star will be operated by Texas Petroleum Group, a wholly owned Shell subsidiary.

Shell climbed about 1.8% to $93.07 on Tuesday as Brent crude jumped more than 2% to around $92.66 a barrel, driven by renewed Middle East fighting that pushed supply fears and geopolitical premiums back into the market. The integrated energy and LNG giant is reportedly considering offers for its U.S. chemical assets, which could be worth as much as $8 billion. According to a Reuters Breakingviews analysis, Shell invested roughly $25 billion across chemicals, including $14 billion in Pennsylvania's Monaca complex, but the division generated a negative 2% return on invested capital in 2024. An $8 billion sale would recover just 32% of that historical investment, a painful haircut but potentially a smart exit from a chronically weak business. Shell's latest quarter delivered $21.4 billion in operating cash flow and $17.5 billion in free cash flow, giving management room to reject a bad price. The stock trades 11.34% above its $83.59 GF Value estimate, adding a valuation warning.

Shell plc announced that on 31 August 2026 it purchased 375,000 shares for cancellation as part of its existing share buy-back programme, which was previously announced on 30 July 2026. The shares were bought on the XAMS venue at a volume-weighted average price of €39.5096 per share, with the highest price paid at €39.9000 and the lowest at €39.2450. These purchases form part of the on- and off-market limbs of the programme, under which Goldman Sachs International will make trading decisions independently of the Company from 30 July 2026 up to and including 23 October 2026. The programme is conducted in accordance with UK and EU regulations governing buy-back programmes.

S&P Dow Jones Indices announced that ARC Resources Ltd. will be removed from the S&P/TSX Composite Index prior to the open of trading on September 2, 2026, following the completion of its merger with Shell PLC. Under the terms of the all-cash-and-stock deal, each ARC Resources share will be exchanged for 0.40247 new Shell PLC shares and $8.20 CAD in cash. The transaction has received all necessary shareholder and regulatory approvals and is expected to close on September 2, 2026, subject to customary conditions, with ARC Resources shares expected to delist shortly thereafter.

Shell CEO Wael Sawan warned in June that oil prices would likely keep rising for close to a year or longer after the Iran conflict, but recent talks between Iran and Oman over reopening the Strait of Hormuz have driven Brent crude below $88 a barrel, its lowest since August 10. The waterway, which carried about a fifth of global oil and gas supplies before the war, could ease supply concerns if fully reopened, with workarounds like emergency stockpile releases and Saudi and UAE pipeline shipments already helping to keep prices down. Sawan's longer-term concern is that "all the easy oil and gas has been found," so prices will need to rise over the next five to ten years to make uneconomic resources viable, a view driving Shell's strategic shift toward upstream oil and gas and away from underperforming assets like its European onshore renewables business. Shell plans to deliver 1 million barrels of oil equivalent per day in new production by 2030, offsetting legacy declines and maintaining liquids output at 1.4 million barrels per day while growing LNG sales at 4% to 5% annually, with recent deals in Venezuela, a potential discovery offshore Egypt, and expansion of LNG Canada positioning it for long-term demand growth.

Shell plc announced that on 26 August 2026 it purchased a total of 1,725,000 shares for cancellation as part of its existing share buy-back programme announced on 30 July 2026. The purchases were executed across multiple venues, with 1,000,000 shares bought on the London Stock Exchange at a volume-weighted average price of £33.5731 per share, 150,000 shares on Chi-X (CXE) at £33.5914 per share, and 575,000 shares on XAMS at €39.2195 per share. Goldman Sachs International is managing the programme, making trading decisions independently of the company until 23 October 2026. The buy-back is conducted under the company's general authority and complies with UK and EU market abuse regulations.

Global private investment in nuclear fusion hit a record $4.48 billion in 2025, up 69% from a year earlier, as major energy companies like Eni, Equinor, Chevron, Shell, and Cenovus ramp up their commitments. Eni plans to deploy a commercial fusion power plant in Europe by the early 2040s, building on its investment in Commonwealth Fusion Systems and a $1 billion agreement to buy electricity from the startup's first U.S. plant. Eni is also forming a joint venture with the UK Atomic Energy Authority to develop fuel systems for fusion reactors, targeting a large-scale tritium fuel-cycle facility by 2028. Commonwealth Fusion Systems raised another $1 billion in July, bringing its total funding to $4 billion, and its planned 400-MW ARC facility in Virginia is the first fusion project to apply for grid interconnection. Chevron has backed TAE Technologies and Zap Energy, while Shell invested in Zap's $130 million Series D round, and Cenovus's early bet on General Fusion is moving toward a Nasdaq listing.

ARC Resources Ltd. announced that the Government of Canada has approved its previously announced plan of arrangement with Shell plc and Shell Canada Limited under the Investment Canada Act. The arrangement, which was approved by ARC shareholders on July 14, 2026, and received a final court order on July 15, 2026, has now cleared all key regulatory hurdles, including approvals under the Competition Act, the Canada Transportation Act, and the U.S. Hart-Scott-Rodino Antitrust Improvements Act. The Alberta Securities Commission has also granted exemptive relief to Shell for its share buyback programs. The transaction is expected to close on or about September 2, 2026, subject to customary closing conditions.