HOUSTON, March 31,
2023 /PRNewswire/ -- Shell USA, Inc., a subsidiary of Shell plc, has
completed the previously announced acquisition of Volta Inc.
(Volta) in an all-cash transaction valued at approximately USD
$169 million. With this acquisition,
Shell now owns and operates one of the largest public electric
vehicle (EV) charging networks in the U.S. The closing of the
transaction occurred after receiving various regulatory clearances
and approval from Volta's stockholders.
Volta provides Shell with an existing public charging network of
over 3,000 charge points at destination sites (shopping centers,
grocery stores, pharmacies, etc.) across 31 U.S. states and
territories, a development pipeline of more than 3,400 additional
charge points, and capabilities to continue developing, operating,
and monetizing EV charging infrastructure.
"We want to make charging as convenient as possible for our
customers," said István Kapitány, Executive Vice President of Shell
Mobility. "As demand for EV charging continues to grow, destination
sites will play a key role in meeting people where they spend a
great deal of time: the store, the gym, and everywhere in-between.
Beyond providing a charging service, Volta specializes in
generating advertising revenues from screens embedded into the
charge point, adding a source of non-fuel revenue from sites both
in the U.S. and globally."
Volta's advertising capability and early mover advantage have
allowed the company to secure prime spots and portfolio-level
contracts with site hosts in high-value, high-traffic markets.
While most of Volta's current revenue is generated through
advertising, there are plans to increase the number of fast
charging DC outlets with a paid charging model.
The acquisition enables Shell to scale its existing network and
offerings to better participate in the long-term EV charging market
opportunity within the U.S.
Notes to editors
- Shell USA, Inc. has acquired
all outstanding shares of Class A common stock of Volta for an
equity purchase price of approximately USD $169 million / $0.86/share in cash. As part of the transaction,
Shell has also repaid Volta's 3rd party debt of USD $11 million. Shell also provided USD $20 million in subordinated secured term loans to
Volta to support Volta's balance sheet and bridge Volta through the
closing of the transaction.
- As of the closing of the merger, Volta is a member of the Shell
Group. The acquisition brings a team of approximately 200 employees
with on-the-ground experience and capability to grow in the nascent
and fast-moving U.S. EV public charging space.
- Globally, Shell aims to expand its EV charging offer to operate
more than 500,000 charge points1 by 2025 and ~2,500,000
charge points by 2030, meeting customer demand at home, at work or
on the go. Today, Shell operates more than 140,000 public and
private charge points around the world.
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Cautionary note
The companies in which Shell plc directly and indirectly owns
investments are separate legal entities. In this press release
"Shell", "Shell Group" and "Group" are sometimes used for
convenience where references are made to Shell plc and its
subsidiaries in general. Likewise, the words "we", "us" and "our"
are also used to refer to Shell plc and its subsidiaries in general
or to those who work for them. These terms are also used where no
useful purpose is served by identifying the particular entity or
entities. ''Subsidiaries'', "Shell subsidiaries" and "Shell
companies" as used in this press release refer to entities over
which Shell plc either directly or indirectly has control. Entities
and unincorporated arrangements over which Shell has joint control
are generally referred to as "joint ventures" and "joint
operations", respectively. "Joint ventures" and "joint operations"
are collectively referred to as "joint arrangements".
Entities over which Shell has significant influence but neither
control nor joint control are referred to as "associates". The term
"Shell interest" is used for convenience to indicate the direct
and/or indirect ownership interest held by Shell in an entity or
unincorporated joint arrangement, after exclusion of all
third-party interest.
The companies in which Shell plc directly and indirectly owns
investments are separate legal entities. In this announcement
"Shell", "Shell Group" and "Group" are sometimes used for
convenience where references are made to Shell plc and its
subsidiaries in general. Likewise, the words "we", "us" and "our"
are also used to refer to Shell plc and its subsidiaries in general
or to those who work for them. These terms are also used where no
useful purpose is served by identifying the particular entity or
entities. ''Subsidiaries'', "Shell subsidiaries" and "Shell
companies" as used in this announcement refer to entities over
which Shell plc either directly or indirectly has control. Entities
and unincorporated arrangements over which Shell has joint control
are generally referred to as "joint ventures" and "joint
operations", respectively. "Joint ventures" and "joint operations"
are collectively referred to as "joint arrangements". Entities over
which Shell has significant influence but neither control nor joint
control are referred to as "associates". The term "Shell interest"
is used for convenience to indicate the direct and/or indirect
ownership interest held by Shell in an entity or unincorporated
joint arrangement, after exclusion of all third-party interest.
Forward-Looking Statements
This announcement contains forward-looking statements (within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995) concerning the financial condition, results of operations and
businesses of Shell. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
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and assumptions and involve known and unknown risks and
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events to differ materially from those expressed or implied in
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things, statements concerning the potential exposure of Shell to
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There are a number of factors that could affect the future
operations of Shell and could cause those results to differ
materially from those expressed in the forward-looking statements
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price fluctuations in crude oil and natural gas; (b) changes in
demand for Shell's products; (c) currency fluctuations; (d)
drilling and production results; (e) reserves estimates; (f) loss
of market share and industry competition; (g) environmental and
physical risks; (h) risks associated with the identification of
suitable potential acquisition properties and targets, and
successful negotiation and completion of such transactions; (i) the
risk of doing business in developing countries and countries
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fiscal and regulatory developments including regulatory measures
addressing climate change; (k) economic and financial market
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including the risks of expropriation and renegotiation of the terms
of contracts with governmental entities, delays or advancements in
the approval of projects and delays in the reimbursement for shared
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the COVID-19 (coronavirus) outbreak; and (n) changes in trading
conditions. No assurance is provided that future dividend payments
will match or exceed previous dividend payments. All
forward-looking statements contained in this announcement are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements. Additional risk
factors that may affect future results are contained in Shell plc's
Form 20-F for the year ended December 31, 2022 (available
at www.shell.com/investor and www.sec.gov). These
risk factors also expressly qualify all forward-looking statements
contained in this announcement and should be considered by the
reader. Each forward-looking statement speaks only as of the date
of this announcement, March 31, 2023. Neither Shell plc nor any of
its subsidiaries undertake any obligation to publicly update or
revise any forward-looking statement as a result of new
information, future events or other information. In light of these
risks, results could differ materially from those stated, implied
or inferred from the forward-looking statements contained in this
announcement.
Shell's net carbon intensity
Also, in this announcement we may refer to Shell's "Net
Carbon Intensity", which includes Shell's carbon emissions from the
production of our energy products, our suppliers' carbon emissions
in supplying energy for that production and our customers' carbon
emissions associated with their use of the energy products we sell.
Shell only controls its own emissions. The use of the term Shell's
"Net Carbon Intensity" is for convenience only and not intended to
suggest these emissions are those of Shell plc or its
subsidiaries.
Shell's net-Zero Emissions Target
Shell's operating plan, outlook and budgets are forecasted for a
ten-year period and are updated every year. They reflect the
current economic environment and what we can reasonably expect to
see over the next ten years. Accordingly, they reflect our Scope 1,
Scope 2 and Net Carbon Intensity (NCI) targets over the next ten
years. However, Shell's operating plans cannot reflect our 2050
net-zero emissions target and 2035 NCI target, as these targets are
currently outside our planning period. In the future, as society
moves towards net-zero emissions, we expect Shell's operating plans
to reflect this movement. However, if society is not net zero in
2050, as of today, there would be significant risk that Shell may
not meet this target.
Forward Looking Non-GAAP measures
This announcement may contain certain forward-looking non-GAAP
measures such as cash capital expenditure and divestments. We are
unable to provide a reconciliation of these forward-looking
Non-GAAP measures to the most comparable GAAP financial measures
because certain information needed to reconcile those Non-GAAP
measures to the most comparable GAAP financial measures is
dependent on future events some of which are outside the control of
Shell, such as oil and gas prices, interest rates and exchange
rates. Moreover, estimating such GAAP measures with the required
precision necessary to provide a meaningful reconciliation is
extremely difficult and could not be accomplished without
unreasonable effort. Non-GAAP measures in respect of future periods
which cannot be reconciled to the most comparable GAAP financial
measure are calculated in a manner which is consistent with the
accounting policies applied in Shell plc's consolidated financial
statements.
The contents of websites referred to in this announcement do not
form part of this announcement.
We may have used certain terms, such as resources, in this
announcement that the United States Securities and Exchange
Commission (SEC) strictly prohibits us from including in our
filings with the SEC. Investors are urged to consider closely the
disclosure in our Form 20-F, File No 1-32575, available on the SEC
website www.sec.gov.
1 Includes charge points at Shell forecourts and new
locations as well as operated charge points owned by customers and
third parties.
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