What's Going On With Shell Shares On Friday?

Shell PLC SHEL shares are trading higher on Friday after the company’s subsidiary, Shell Offshore Inc., started production at the Whale floating production facility in the Gulf of Mexico.

The Whale project utilizes a streamlined, cost-effective design modeled after the Vito platform, which launched operations in early 2023.

The development is a joint venture between Shell Offshore, holding a 60% operating stake, and Chevron U.S.A. Inc., which owns the remaining 40%.

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The Whale facility is expected to produce up to 100,000 barrels of oil equivalent per day. That includes an estimated 480 million barrels of oil equivalent in recoverable resources.

Whale claims to operate with 30% lower greenhouse gas intensity than Vito.

The project is expected to contribute to a combined peak production of over 500,000 boe per day between 2023 and 2025.

The company also expects fourth-quarter results in its Integrated Gas division to be significantly lower sequentially, driven by the impact of expiring hedging contracts.

The oil giant lowered its guidance for integrated gas production for the quarter, expecting to produce between 880 – 920 kboe/d oil-equivalent barrels per day, down from the prior outlook of 900 – 960 boe/d.

Investors can gain exposure to the stock via VanEck Natural Resources ETF HAP and Octane All-Cap Value Energy ETF OCTA.

Price Action: Shell shares are up 1.76% at $65.86 premarket at the last check Friday.

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