Shell Agrees to Acquire Full Control of Tri Star Energy

Equilon Enterprises LLC, doing business as Shell Oil Products US, has signed an agreement to increase its equity stake in Tri Star Energy, LLC from 33% to 100%, Shell announced on September 1, 2026. The transaction gives Shell full ownership of a convenience store operator and fuel distributor active across the southeastern United States and anchored in the Nashville market.

Under the agreement, Shell is acquiring the remaining interest in Tri Star Energy from The Parman Corporation, Kimbro Oil Company, and their subsidiaries. The acquisition makes Shell the full owner of an additional 320 fuel and convenience retail sites in Tennessee and surrounding states, along with supply agreements covering 552 more dealer-owned locations. Shell stated that the deal will more than double its company-owned convenience retail presence in the US.

Once the acquisition is complete, Tri Star Energy will be operated by Texas Petroleum Group, LLC, a wholly owned subsidiary of Shell Mobility & Convenience US LLC (SMC). Following completion, SMC’s portfolio will consist of nearly 550 company-owned convenience retail sites and supply agreements with approximately 650 dealer-owned sites across the southern US.

“Tri Star has built a strong business with high-quality assets, a dedicated team and a loyal customer base. The transaction is fully aligned with our growth strategy to focus capital on businesses in which we have distinctive advantages and can create long-term shareholder value,” said Machteld de Haan, President of Downstream, Renewables and Energy Solutions, Shell plc.

Shell described its existing US footprint as the largest branded fuel network in the country, with approximately 12,000 primarily wholesaler- and dealer-owned fuel and convenience retail sites across 49 states serving more than 7 million customers daily. The company stated that the acquisition significantly strengthens its company-owned presence in the US. Globally, Shell and its affiliates serve around 29 million customers per day at Shell-branded mobility sites, which offer fuels, electric vehicle charging, and convenience and non-fuel products and services.

Shell projected that the acquisition will generate an internal rate of return above the hurdle rate set for its marketing business. Financial terms of the transaction were not disclosed. The deal is expected to be completed by the end of 2026, subject to regulatory clearance and the satisfaction of closing conditions.

Strategy Context

Shell said the investment aligns with the strategy it presented at its Capital Markets Day on March 25, 2025, to reallocate capital from lower-return areas to businesses and markets where it has demonstrated strong performance and holds clear competitive advantages. At that event, Shell stated that 80% of its growth cash capex in the Mobility & Convenience business will be spent in 10 key markets, such as the US, where it generates the majority of its cash flow.

The broader framework set out at Capital Markets Day 2025 included enhancing shareholder distributions from 30–40% to 40–50% of cash flow from operations through the cycle, continuing to prioritize share buybacks while maintaining a 4% per annum progressive dividend policy. Shell also raised its structural cost reduction target from $2–3 billion by the end of 2025 to a cumulative $5–7 billion by the end of 2028 compared to 2022, lowered planned capital spending to $20–22 billion per year for 2025–2028, and set a target of growing free cash flow per share by more than 10% per year through 2030.

In the Downstream and Renewables & Energy Solutions businesses, Shell said at the March 2025 event that it would pursue focused growth in its high-return Mobility and Lubricants businesses. According to materials from the Capital Markets Day presentation, Shell also outlined efforts to expand convenience retail margins, projecting an 8–10% compound annual growth rate in food and beverage gross margin by 2030 from a 2024 base year, and stated that premium fuels were expected to contribute around 30% of gross margin by 2030.