We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shell to Expand Presence in Power Market with MP2 Buyout
Read MoreHide Full Article
Shell Energy North America or SENA, a part of the integrated oil company Royal Dutch Shell plc recently signed a purchase agreement to acquire power and retail electric company, MP2 Energy. The acquisition is expected to be closed by the third quarter of 2017.
The Woodlands-based MP2 operates power plants and provides retail power to final consumers. Its operations also include commodity hedging, asset and risk management, execution of transactions, and delivering according to the precise needs of the clients. On the other hand, SENA's operations incorporate commercial and industrial retail energy management on the west coast of the US.
The MP2 management team will continue to function after the acquisition as the company will operate as a wholly-owned subsidiary of SENA.
Although the financial details are yet to be disclosed, we would like to remind investors that Shell, belonging to the Zacks categorized Oil and Gas, International Integrated industry, is still under pressure following its $50 billion acquisition of BG Group plc. There are concerns related to the company’s increased net debt and reduction in liquidity. In the last six months, Shell’s units fell 3.8%.
Factors that Led to the Acquisition
The deal will diversify Shell's business and help it to expand its electricity presence beyond the West Coast and spreading into Texas, the Midwest and the East Coast. Shell will be able to use MP2's network and self-developed proprietary systems and technology to supply market-based solutions to manage energy supply, load, and generation. In particular, the MP2 buy will help complement Shell’s transition away from oil and gas as part of its efforts to reduce operational carbon footprint.
The acquisition will help SENA to provide its customers more innovative commodity solutions and new energy management tools. The rooftop solar system programs of MP2 will help Shell to expand on the renewable energy front. MP2’s skillset and Shell’s resources will help SENA further its edge in services and products.
About the Company
Headquartered in The Hague, Netherlands, Shell explores for and extracts crude oil, natural gas, and natural gas liquids. The company transports oil and gas, converts natural gas to liquids to produce and market fuels and other products. It also extracts bitumen from mined oil sands and turns it into synthetic crude oil. Shell also generates electricity from the wind. The company divides its operations into four major segments: Upstream, Downstream, Corporate and Integrated Gas.
Zacks Rank and Stocks to Consider
Shell presently has a Zacks Rank #5 (Strong Sell).
Delek US Holdings’ sales for 2017 are expected to increase 71.3% year over year. The company came up with an average positive earnings surprise of 60.7% in the last four quarters.
Southcross Energy’s sales for the second quarter of 2017 are expected to increase 29.4% year over year. The partnership delivered an average positive earnings surprise of 22.7% in the last four quarters.
Canadian Natural Resources’ sales for 2017 are expected to increase 49.4% year over year. The company delivered a positive earnings surprise of 30.8% in the first quarter of 2017.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shell to Expand Presence in Power Market with MP2 Buyout
Shell Energy North America or SENA, a part of the integrated oil company Royal Dutch Shell plc recently signed a purchase agreement to acquire power and retail electric company, MP2 Energy. The acquisition is expected to be closed by the third quarter of 2017.
The Woodlands-based MP2 operates power plants and provides retail power to final consumers. Its operations also include commodity hedging, asset and risk management, execution of transactions, and delivering according to the precise needs of the clients. On the other hand, SENA's operations incorporate commercial and industrial retail energy management on the west coast of the US.
The MP2 management team will continue to function after the acquisition as the company will operate as a wholly-owned subsidiary of SENA.
Although the financial details are yet to be disclosed, we would like to remind investors that Shell, belonging to the Zacks categorized Oil and Gas, International Integrated industry, is still under pressure following its $50 billion acquisition of BG Group plc. There are concerns related to the company’s increased net debt and reduction in liquidity. In the last six months, Shell’s units fell 3.8%.
Factors that Led to the Acquisition
The deal will diversify Shell's business and help it to expand its electricity presence beyond the West Coast and spreading into Texas, the Midwest and the East Coast. Shell will be able to use MP2's network and self-developed proprietary systems and technology to supply market-based solutions to manage energy supply, load, and generation. In particular, the MP2 buy will help complement Shell’s transition away from oil and gas as part of its efforts to reduce operational carbon footprint.
The acquisition will help SENA to provide its customers more innovative commodity solutions and new energy management tools. The rooftop solar system programs of MP2 will help Shell to expand on the renewable energy front. MP2’s skillset and Shell’s resources will help SENA further its edge in services and products.
About the Company
Headquartered in The Hague, Netherlands, Shell explores for and extracts crude oil, natural gas, and natural gas liquids. The company transports oil and gas, converts natural gas to liquids to produce and market fuels and other products. It also extracts bitumen from mined oil sands and turns it into synthetic crude oil. Shell also generates electricity from the wind. The company divides its operations into four major segments: Upstream, Downstream, Corporate and Integrated Gas.
Zacks Rank and Stocks to Consider
Shell presently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the oil and energy sector are Delek US Holdings, Inc. (DK - Free Report) , Southcross Energy Partners, L.P. and Canadian Natural Resources Limited (CNQ - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings’ sales for 2017 are expected to increase 71.3% year over year. The company came up with an average positive earnings surprise of 60.7% in the last four quarters.
Southcross Energy’s sales for the second quarter of 2017 are expected to increase 29.4% year over year. The partnership delivered an average positive earnings surprise of 22.7% in the last four quarters.
Canadian Natural Resources’ sales for 2017 are expected to increase 49.4% year over year. The company delivered a positive earnings surprise of 30.8% in the first quarter of 2017.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>