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Last updated : 30/10/2026 - 17h36
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Shell: agreements to divest RISEC ($715M) and acquire Hunlock

The two agreements, signed by its subsidiary Shell Energy North America (SENA), are subject to regulatory approvals and are expected to be finalized in the first quarter of 2027. According to Shell, the divestiture of RISEC will enable the company to realize significant capital gains ahead of the returns expected from a longer-term holding, while the acquisition of Hunlock will strengthen its position in the PJM electricity market.


Shell: agreements to divest RISEC ($715M) and acquire Hunlock

RISEC: a 609 MW power plant in New England

Announced on September 10, 2026 from Houston, the first agreement concerns the divestiture of SENA's interests in RISEC Holdings, LLC to Constellation Energy Generation, LLC, for 715 million dollars. RISEC operates a 609 MW combined-cycle gas-fired power plant, comprising two units, which supplies the New England electricity market. The energy conversion contract that has bound SENA to RISEC since 2019 for the entire output of the plant will terminate upon completion of the divestiture.

Hunlock, a gas asset on the PJM electricity market

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The second agreement provides for the acquisition of 100% of the capital of Hunlock Creek Generating LLC, which holds through its subsidiary 169 MW of gas-fired generation capacity in Pennsylvania, including a 125 MW combined-cycle power plant and a 44 MW peaking unit. Owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International LLC, Hunlock is expected according to Shell to generate returns exceeding the investment requirements established for its electricity business during its 2025 investor day.



Sector Énergie › Pétrole et gaz intégrés


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Context

Period
  • Period: 9M 2026
Key reported figures
  • Revenue: 257 203 millions de dollars
  • Quarterly revenue: 257 203 millions de dollars
  • Revenue growth: 26,8 %
  • EBITDA: 61 187 millions de dollars
  • EBITDA margin: 23,8 %
  • Net income: 28 573 millions de dollars
  • Free cash flow: 36 773 millions de dollars
  • 39 733 millions de dollars
Guidance from the release
  • « Our cash capital expenditure for the full year 2026 is expected to be $23-$25 billion. »
Risks mentioned
  • Middle East conflict impact on Qatari volumes, reducing total oil and gas production by 17% year-on-year for nine months
  • European biogas asset impairment of $2,098 million (identified items in nine months 2026) reflecting revised market expectations
  • Identified items totalling $1,201 million net loss for nine months 2026, including impairments and fair value movements on derivatives
Opportunities identified
  • ARC Resources acquisition adds approximately 370 kboe/d immediately upon completion on September 2, 2026
  • LNG Canada Phase 2 investment decision taken with expected commercial operations in early 2030s, expanding capacity to 28 mtpa
  • Multiple strategic divestments generating proceeds ($3.5 billion in nine months 2026) to support capital discipline and debt management
Outlook / guidance
  • Management commentary: Our cash capital expenditure for the full year 2026 is expected to be $23-$25 billion

The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.

Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.

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