


The Value Portfolio: Jan 23, 2018
Summary
- Royal Dutch Shell took advantage of the market downturn to acquire BG Group. That let the company grow by 50%, something that has supported production significantly.
- Royal Dutch Shell anticipates cash flow of $25-30 billion by 2020, and that could grow to almost $50 billion with recovering oil prices. That will result in significant reward to shareholders.
- I think LNG will be an especially rewarding opportunity for Royal Dutch Shell going forward. That could help the company’s cash flow to grow even further.
Royal Dutch Shell (NYSE:RDS.A) (NYSE: RDS.B) has been on a tear recently, growing to a $300 billion oil giant, making it the second-largest publicly traded oil company in the world. Yet the company isn’t done. A combination of the company’s integration of its more than $50 billion acquisition of BG Group, at an opportune time, combined with the company’s strong portfolio and its growth potential makes the company a royally good investment.
BG Group Combination
The company’s acquisition of BG Group, at a time when the oil markets were dropping, was viewed with various opinions. Many wanted the company to not issue shares when prices were low and preserve cash. However, the company paying for roughly 40% of the acquisition with cash minimized the dilution to shareholders. And it enabled the company to gain access to strong assets at a great time. read more
Like this:
Like Loading...
This website and sisters
royaldutchshellplc.com,
shellnazihistory.com,
royaldutchshell.website,
johndonovan.website, and
shellnews.net,
are owned by
John Donovan. There is also a
Wikipedia segment.