Shell acquiring full ownership of Tri Star Energy
Equilon Enterprises, doing business as Shell Oil Products U.S., signed an agreement to increase its equity in Tri Star Energy from 33% to 100%. The acquisition gives Shell full ownership of an additional 320 fuel and convenience retail sites in Tennessee and surrounding states, along with supply agreements for 552 dealer-owned locations.
The deal is expected to close by the end of 2026, subject to regulatory clearance and closing conditions. Shell is acquiring the remaining interest in Tri Star Energy from The Parman Corporation, Kimbro Oil and their subsidiaries.
Strategic expansion in key U.S. markets
The transaction will more than double Shell’s company-owned convenience retail sites in the United States. Shell currently operates the largest branded fuel network in the country, with about 12,000 primarily wholesaler- and dealer-owned locations across 49 states.
Machteld de Haan, president of downstream, renewables and energy solutions at Shell plc, noted that Tri Star has built a strong business with high-quality assets, a dedicated team and a loyal customer base. De Haan stated that the deal aligns with Shell's strategy to focus capital on businesses where the company holds distinctive advantages and can build long-term value for shareholders.
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The investment reflects Shell’s broader capital allocation strategy announced at its 2025 Capital Markets Day. The company plans to shift capital from lower-return areas to markets where it delivers strong performance. Shell stated that 80% of its growth cash capital expenditure in the mobility and convenience business will focus on 10 key markets, including the United States, where it generates most of its cash flow.
Operational management and future growth
Once the deal closes, Tri Star Energy will be operated by Texas Petroleum Group, a wholly owned subsidiary of Shell Mobility & Convenience U.S.
Following the integration, the Shell Mobility & Convenience U.S. portfolio will feature nearly 550 company-owned convenience retail sites and supply agreements for roughly 650 dealer-owned sites across the southern U.S.
Shell projects that the acquisition will generate an internal rate of return above the established hurdle rate for its marketing business. Globally, Shell and its affiliates serve approximately 29 million customers daily at branded mobility sites offering fuel, electric vehicle charging and convenience items.
