Coming off first-quarter adjusted earnings of $7.7 billion, Shell will commence a $3.5 billion share buyback program, the company said on May 2.
The past four quarters, Shell paid out total shareholder distributions of 41% of cash flow from operating activities (CFFO). In the first quarter, Shell reported $13.3 billion in CFFO. For the quarter, income attributable to shareholders was $7.4 billion, the company said.
Shell said the repurchase program is intended to reduce the issued share capital of the company, with the company cancelling all of the shares it buys. The company said it expects to complete the share repurchase in second-quarter 2024, before it announces results on Aug. 1.
Shell entered into an arrangement with a single broker consisting of three irrevocable, non-discretionary contracts, to enable the purchase of ordinary shares on both London and Netherlands exchanges for a period up to and including July 26. In the London exchange, the aggregate maximum consideration for repurchasing shares under the London contracts is $2 billion. In the Netherlands exchange, the maximum consideration under contract is $1.5 billion.
Recommended Reading
Hess Midstream Subsidiary to Buy Back $100MM of Class B Units
2024-03-13 - Hess Midstream subsidiary Hess Midstream Operations will repurchase approximately 2 million Class B units equal to 1.2% of the company.
Plains All American Names Michelle Podavin Midstream Canada President
2024-03-05 - Michelle Podavin, who currently serves as senior vice president of NGL commercial assets for Plains Midstream Canada, will become president of the business unit in June.
Matador Completes NatGas Connections in Delaware Basin
2024-03-25 - Matador Resources completed natural gas pipeline connections between Pronto Midstream to San Mateo Midstream and to Matador’s acreage in the Delaware Basin.
Targa Resources Ups Quarterly Dividend by 50% YoY
2024-04-12 - Targa Resource’s board of directors increased the first-quarter 2024 dividend by 50% compared to the same quarter a year ago.
Pembina Declares Series of Quarterly Dividends
2024-04-10 - Pembina Pipeline Corp’s board of directors declared quarterly dividends for series 1, 3, 5, 7, 9, 15, 17, 19, 21, 22 and 25.