Royal Dutch Shell plc Shell Completes Sale Of Its Permian Business To Conocophillips
December 01 2021 - 4:18PM
UK Regulatory
TIDMRDSA TIDMRDSB
HOUSTON (December 1, 2021) -- Shell Enterprises LLC, a
subsidiary of Royal Dutch Shell plc, has completed the sale of its
interest in the Permian to ConocoPhillips for $9.5 billion in cash.
The agreement covers the sale of Shell's 225k net acres and
existing production of around 175 thousand barrels equivalent per
day.
As noted in the
https://www.globenewswire.com/Tracker?data=phHxyTYar9FbLZO756lxwuZqfI5nboZwm-akX7rccSDHBQ7ZX-UwrQrI5RcniwPx24Mlya76VvnywKNrEhMSqcbDRTiEnTT58qgFu-bfZueu2fnuJgQV8iT4Zqyn2YIguSG2IwbL2hFT6IXrzNjH-Jx7V8wMj8zXWUBuNXFSyxOroYNxEYHYrnK72hLMebCs
announcement of the agreement for the sale of Shell's Permian
business, this deal reflects Shell's focus on value over volumes as
well as disciplined stewardship of capital. This transaction was
made possible by the Permian team's outstanding operational
performance and provides excellent value to our shareholders
through accelerated cash delivery and additional distributions.
As previously announced, the cash proceeds from this transaction
will be used to fund $7 billion in additional shareholder
distributions with the remainder used for further strengthening of
the balance sheet. The first tranche of additional shareholder
distributions will be in the form of share buybacks of up to $1.5
billion and will commence on December 2, 2021. The form and timing
for distributing the remaining $5.5 billion will be announced in
early 2022. These distributions are in addition to our shareholder
distributions in the range of 20-30% of cash flow from
operations.
Notes to editors
-- On September 20, 2021, Shell and ConocoPhillips
https://www.shell.com/media/news-and-media-releases/2021/shell-signs-agreement-to-sell-permian-business.html
announced that they had reached an agreement for ConocoPhillips to
acquire Shell's Permian business.
-- The transaction resulted in an after-tax gain of $2.4 to $2.6 billion
after adjustments.
-- Majority of Midland-based Permian employees and many Houston-based
employees were offered employment by ConocoPhillips with effect upon
closing in accordance with the terms and conditions of the transaction.
-- Shell is one of America's leading energy companies with interests in 50
states employing more than 15,000 people. Shell's U.S. portfolio of
operated companies and interests consists of oil, natural gas,
petrochemicals, gasoline, lubricants, and other refined products along
with renewables such as wind, solar, and mobility options like electric
vehicle charging and hydrogen. In the U.S. Shell is also investing in an
integrated power business that will provide electricity to millions of
homes and businesses.
Enquiries
Media International: +44 207 934 5550
Media Americas: +1 832 337 4355
Cautionary note
The companies in which Royal Dutch Shell plc directly and
indirectly owns investments are separate legal entities. In this
announcement "Shell", "Shell Group" and "Group" are sometimes used
for convenience where references are made to Royal Dutch Shell plc
and its subsidiaries in general. Likewise, the words "we", "us" and
"our" are also used to refer to Royal Dutch Shell plc and its
subsidiaries in general or to those who work for them. These terms
are also used where no useful purpose is served by identifying the
particular entity or entities. "Subsidiaries", "Shell subsidiaries"
and "Shell companies" as used in this announcement refer to
entities over which Royal Dutch Shell plc either directly or
indirectly has control. Entities and unincorporated arrangements
over which Shell has joint control are generally referred to as
"joint ventures" and "joint operations", respectively. Entities
over which Shell has significant influence but neither control nor
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interest" is used for convenience to indicate the direct and/or
indirect ownership interest held by Shell in an entity or
unincorporated joint arrangement, after exclusion of all
third-party interest.
This announcement contains forward-looking statements (within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995) concerning the financial condition, results of operations and
businesses of Shell. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
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and assumptions and involve known and unknown risks and
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(without limitation): (a) price fluctuations in crude oil and
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currency fluctuations; (d) drilling and production results; (e)
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competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential
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(coronavirus) outbreak; and (n) changes in trading conditions. No
assurance is provided 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's 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 considered by the reader. Each
forward-looking statement speaks only as of the date of this
announcement, December 1, 2021. Neither Royal Dutch Shell plc nor
any of its subsidiaries undertake any obligation 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 stated, implied
or inferred from the forward-looking statements contained in this
announcement.
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form part of this announcement.
We may have used certain terms, such as resources, in this
announcement that the United States Securities and Exchange
Commission (SEC) strictly prohibits us from including in our
filings with the SEC. Investors are urged to consider closely 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 plc: 21380068P1DRHMJ8KU70
(END) Dow Jones Newswires
December 01, 2021 16:18 ET (21:18 GMT)
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