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Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News.

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idpickering
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Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News.

#462493

Postby idpickering » December 2nd, 2021, 7:09 am

Here; viewtopic.php?p=462492#p462492

Including this;

Royal Dutch Shell plc (the ‘company’) announces the commencement of up to $1.5 billion of share buybacks today, being the first tranche of the $7 billion shareholder distributions from the sale of the company’s Permian business in the United States. The form and timing for distributing the remaining $5.5 billion (together with any unpurchased amount of the $1.5 billion of shares under this tranche) 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.


Looks promising on the dividend front imho, maybe a special too?

Ian.

tjh290633
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Re: Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News

#462580

Postby tjh290633 » December 2nd, 2021, 11:15 am

idpickering wrote:Looks promising on the dividend front imho, maybe a special too?

Ian.

I get the impression that it will all be share buybacks, which is not my favourite method of returning capital to shareholders.

TJH

BullDog
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Re: Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News

#462585

Postby BullDog » December 2nd, 2021, 11:25 am

tjh290633 wrote:
idpickering wrote:Looks promising on the dividend front imho, maybe a special too?

Ian.

I get the impression that it will all be share buybacks, which is not my favourite method of returning capital to shareholders.

TJH

Myself, I'd rather they paid down more debt.

MDW1954
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Re: Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News

#462619

Postby MDW1954 » December 2nd, 2021, 1:19 pm

BullDog wrote:Myself, I'd rather they paid down more debt.


The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet.


Source:

https://www.shell.com/media/news-and-media-releases/2021/shell-signs-agreement-to-sell-permian-business.html

So, $7bn in buybacks and/or dividends, and $2.5bn in debt reduction.

MDW1954

Dod101
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Re: Shell announces commencement of shareholder distributions from Permian business sale proceeds posted on Company News

#462626

Postby Dod101 » December 2nd, 2021, 1:31 pm

tjh290633 wrote:
idpickering wrote:Looks promising on the dividend front imho, maybe a special too?

Ian.

I get the impression that it will all be share buybacks, which is not my favourite method of returning capital to shareholders.

TJH


It is entirely reasonable that they will use most of the proceeds to reduce their capital because even for Shell $9.5 billion is a very large asset to sell.
Furthermore they were set for a big share buyback in any case but Covid interrupted their plans.

Dod


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