Shell (SHEL) to Sell Interest in Baram Delta Offshore Malaysia
Shell plc SHEL recently announced that its subsidiary in Malaysia, Sarawak Shell Berhad, has agreed to sell its non-operated stake in two offshore production sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production.
The sale consists of Shell’s 40% stake in the Amended 2011 Baram Delta EOR PSC and 50% of the SK307 PSC. The remaining interests in both PSCs are owned by the operator, Petronas Carigali.
Petroleum Sarawak will pay Shell a consideration of $475 million and as much as $50 million between 2023 and 2024, depending on commodity prices. The deal, subject to regulatory approval, has an effective date of Jan 1, 2023, and is intended to be closed early next year.
Zoe Yujnovich, Shell’s Upstream Director, said that the sale is in line with the company’s effort to continue focusing on its portfolio. “Malaysia remains one of our eight core Upstream positions worldwide and we will continue to help power the country’s progress by investing in the oil and gas needed today, as well as in the transition to a low-carbon energy system,” he added.
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing.
Shell, the British energy major, currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include EnLink Midstream ENLC, NexTier Oilfield Solutions NEX and RPC RES, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EnLink’s 2022 earnings stands at 53 cents per share, which implies an increase of 960% from the year-ago earnings of 5 cents.
The consensus mark for ENLC’s 2022 earnings has been revised upward in the past 60 days from 43 cents to 53 cents per share.
The consensus estimate for NexTier’s 2022 earnings stands at $1.41 per share, indicating an increase of about 427.9% from the year-ago loss of 43 cents.
NEX beat estimates for earnings in all the trailing four quarters, the average being around 271%.
The consensus mark for RPC’s 2022 earnings is pegged at 91 cents per share, which indicates an increase of 2,933.3% from the year-ago earnings of 3 cents.
RES beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 62%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RPC, Inc. (RES) : Free Stock Analysis Report
EnLink Midstream, LLC (ENLC) : Free Stock Analysis Report
NexTier Oilfield Solutions Inc. (NEX) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
