Shell (SHEL) Considers Sale of Vaca Muerta Assets Valued in Billions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
0mins
Source: seekingalpha
- Asset Sale Consideration: Shell is contemplating the sale of its assets in Argentina's Vaca Muerta shale play and has approached potential buyers recently to gauge interest, indicating a strategic shift for the company in the region.
- Market Valuation Potential: Although precise estimates are challenging, Shell's assets could be valued in the billions, reflecting Vaca Muerta's potential as the world's second-largest shale gas and fourth-largest shale oil resource.
- Impact of Market Exit: A full sale of Shell's interests in Vaca Muerta would mark an unexpected exit for one of the play's early investors, particularly as interest in the region grows due to concerns that other large shale fields have peaked.
- Industry Dynamics: The recent acquisition of minority stakes in four Vaca Muerta blocks by Harold Hamm's Continental Resources highlights the region's appeal in the global shale market, further influencing Shell's strategic considerations.
Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHEL is 74.27 USD with a low forecast of 41.75 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 72.420
Low
41.75
Averages
74.27
High
91.00
Current: 72.420
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
