Editing Shell plc
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| '''$ 142.95''' | | '''$ 142.95''' | ||
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The DCF valuation shows that Shell stock is undervalued, based on | The DCF valuation shows that Shell stock is undervalued, based on the data and assumptions used for the model. | ||
'''Shell Targets''' | '''Shell Targets''' | ||
At the latest Shell capital markets day on the | At the latest Shell capital markets day on the 14th June 2023, Shell CEO Wael Sawan announced that a minimum of $5 billion in share buy-backs would take place in the second half of the year, a strong sign that management believes that their company is undervalued. | ||
Furthermore, it was announced that Shell would sustain their production of oil at 1.4 million barrels per day throughout the decade, as well as growing their integrated gas portfolio through an extra 11 million tons of storage per year, | Furthermore, it was announced that Shell would sustain their production of oil at 1.4 million barrels per day throughout the decade, as well as growing their integrated gas portfolio through an extra 11 million tons of storage per year currently under construction, coming into effect past 2025. Alongside this, Shell has set itself strict targets of reducing structural cost by $2-3 billion by the end of 2025, as well as a capital spend reduction to a total of $22-25 billion per year for 2024/2025. | ||
'''ESG Factors''' | '''ESG Factors''' | ||
LNG natural gas makes up a majority of Shell's gas portfolio, and has 50% less carbon emissions than coal, when used to produce electricity, Shell aims to phase out coal, and replace it with the lower carbon alternative, LNG. Shell also has targets to have net zero methane emissions by 2030, and to eliminate routine flaring by 2025, faster than the world bank's 2030 deadline. | |||
'''Relative Valuation''' | '''Relative Valuation''' |