Friday, January 30, 2009

Shell Increasing Capex Budget

I read in the Wall Street Journal today that Shell Oil is increasing its capital budget from $30 million to between $31 and $32 million. While this is not a dramatic uptick, Shell is one of the few E&P companies to increase its capital budget. The company also announced that it is increasing its dividend, a sure sign of confidence. Shell's move comes in the wake of several disappointing announcements from major companies, especially ConocoPhillips, which slashed its capital budget earlier this week.

Shell's activity in the Haynesville Play is in the form of a 50/50 joint exploration venture with EnCana Oil & Gas.

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