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Shell (SHEL), Partners Announce First Gas From Oman Asset
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Shell (SHEL - Free Report) has started to produce gas at the Mabrouk North-East field in Block 10, onshore Oman. The energy major further informed that it has entered into a 10-year contract to supply 800,000 metric tons of liquefied natural gas per year to Oman, beginning 2025. Block 10, where Shell holds a 53.45% operatorship interest, is strategically significant for Oman and is expected to balance the country's gas supply and demand shortfalls.
Block 10's license agreement was signed in December 2021, and Shell was later chosen to operate the block. The company stated that by mid-2024, gas production from Block 10 is estimated to reach 500 million standard cubic feet per day.
According to Omani officials, Shell and its partners in Block 10, that collectively hold a 46.55% stake, plan to invest $2 billion in the development of key facilities needed for the gas-rich onshore land. The Oman government and Shell are exploring alternatives for a different downstream gas project that would support the production of low-carbon items and encourage the expansion of blue hydrogen in Oman.
Zacks Rank and Key Picks
Shell, a leading player in the global oil and gas industry, has its headquarters in London.
Currently, Shell carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like Patterson-UTI Energy (PTEN - Free Report) and Helmerich & Payne (HP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and RPC Inc. (RES - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.47 billion. Its shares have gained 63.4% in the past year.
Helmerich & Payne: Helmerich & Payne is valued at around $4.95 billion. Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised 18.8% higher.
Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 124.22%, on average. In the past year, the HP stock has increased by 67.1%.
RPC: RPC Inc. beat earnings estimates in all the trailing four quarters, the average being around 62%. The market capitalization of RES is $1.87 billion. In the past year, the RES stock has increased by 53.9%.
Digging into valuation, RPC currently has a Forward P/E ratio of 6.53. For comparison, its industry has an average Forward P/E of 22.57, which means RPC is trading at a discount to the group.
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Shell (SHEL), Partners Announce First Gas From Oman Asset
Shell (SHEL - Free Report) has started to produce gas at the Mabrouk North-East field in Block 10, onshore Oman. The energy major further informed that it has entered into a 10-year contract to supply 800,000 metric tons of liquefied natural gas per year to Oman, beginning 2025. Block 10, where Shell holds a 53.45% operatorship interest, is strategically significant for Oman and is expected to balance the country's gas supply and demand shortfalls.
Block 10's license agreement was signed in December 2021, and Shell was later chosen to operate the block. The company stated that by mid-2024, gas production from Block 10 is estimated to reach 500 million standard cubic feet per day.
According to Omani officials, Shell and its partners in Block 10, that collectively hold a 46.55% stake, plan to invest $2 billion in the development of key facilities needed for the gas-rich onshore land. The Oman government and Shell are exploring alternatives for a different downstream gas project that would support the production of low-carbon items and encourage the expansion of blue hydrogen in Oman.
Zacks Rank and Key Picks
Shell, a leading player in the global oil and gas industry, has its headquarters in London.
Currently, Shell carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like Patterson-UTI Energy (PTEN - Free Report) and Helmerich & Payne (HP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and RPC Inc. (RES - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.47 billion. Its shares have gained 63.4% in the past year.
Helmerich & Payne: Helmerich & Payne is valued at around $4.95 billion. Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised 18.8% higher.
Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 124.22%, on average. In the past year, the HP stock has increased by 67.1%.
RPC: RPC Inc. beat earnings estimates in all the trailing four quarters, the average being around 62%. The market capitalization of RES is $1.87 billion. In the past year, the RES stock has increased by 53.9%.
Digging into valuation, RPC currently has a Forward P/E ratio of 6.53. For comparison, its industry has an average Forward P/E of 22.57, which means RPC is trading at a discount to the group.