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Shell (RDS.A) Signs Deal to Acquire Retail & Convenience Sites
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Royal Dutch Shell plc entered an agreement with the Landmark group of companies to acquire 248 of the latter’s fuel and convenience retail establishments.
Per the terms of the deal, Shell will also acquire supply agreements with another 117 independently operated fuel and convenience sites. The deal is expected to close by the end of 2021.
With the acquisition, Shell continues to expand its brand presence in the United States and leverage its current business network. The deal enables the company to increase its non-fuel sales via convenience retail sites. It expects customers to gain from the enhanced fueling options, which involve electric vehicle charging, hydrogen, biofuel and lower-carbon premium fuels.
Over a decade ago, major energy companies, including Shell, exited the U.S. retail business as upstream profits outpaced downstream retail opportunities. In 2018, Shell jumped back to the retail business when it initiated its first Shell Select convenience store in Louisville. Hence, the latest acquisition reflects a far more assertive leap into convenience and fuel retailing.
The agreement involves the acquisition of the remaining 50% stake in Texas Petroleum Group LLC, a 50/50 joint venture between Shell and Landmark Industries Holdings Ltd. The deal also involves additional retail gas stations and supply agreements.
Shell commits to collaborate with wholesalers and dealers to serve its customers, create business value and thrive through the energy transition. The agreement adds more than 13,000 Shell-branded sites across the United States, owned and operated by wholesalers, dealers and joint venture partners. By 2025, Shell expects to globally service 40 million customers per day at its retail service stations, while having 55,000 Shell-branded retail service stations and 15,000 convenience stores.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of the United States and Europe-based big energy multinationals. The company is fully integrated, as it participates in every aspect related to energy, from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 21.1% compared with the industry’s 19.2% growth.
Image: Bigstock
Shell (RDS.A) Signs Deal to Acquire Retail & Convenience Sites
Royal Dutch Shell plc entered an agreement with the Landmark group of companies to acquire 248 of the latter’s fuel and convenience retail establishments.
Per the terms of the deal, Shell will also acquire supply agreements with another 117 independently operated fuel and convenience sites. The deal is expected to close by the end of 2021.
With the acquisition, Shell continues to expand its brand presence in the United States and leverage its current business network. The deal enables the company to increase its non-fuel sales via convenience retail sites. It expects customers to gain from the enhanced fueling options, which involve electric vehicle charging, hydrogen, biofuel and lower-carbon premium fuels.
Over a decade ago, major energy companies, including Shell, exited the U.S. retail business as upstream profits outpaced downstream retail opportunities. In 2018, Shell jumped back to the retail business when it initiated its first Shell Select convenience store in Louisville. Hence, the latest acquisition reflects a far more assertive leap into convenience and fuel retailing.
The agreement involves the acquisition of the remaining 50% stake in Texas Petroleum Group LLC, a 50/50 joint venture between Shell and Landmark Industries Holdings Ltd. The deal also involves additional retail gas stations and supply agreements.
Shell commits to collaborate with wholesalers and dealers to serve its customers, create business value and thrive through the energy transition. The agreement adds more than 13,000 Shell-branded sites across the United States, owned and operated by wholesalers, dealers and joint venture partners. By 2025, Shell expects to globally service 40 million customers per day at its retail service stations, while having 55,000 Shell-branded retail service stations and 15,000 convenience stores.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of the United States and Europe-based big energy multinationals. The company is fully integrated, as it participates in every aspect related to energy, from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 21.1% compared with the industry’s 19.2% growth.
Zacks Rank & Stock to Consider
Shell currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Pioneer Natural Resources (PXD - Free Report) , EOG Resources (EOG - Free Report) and Chevron Corporation (CVX - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural’s earnings for 2021 are expected to surge 66.6% year over year.
EOG’s earnings for 2021 are expected to increase 21.7% year over year.
Chevron’s earnings for 2021 are expected to rise 19.5% year over year.