SHALE GAS INDUSTRY – UNITED STATES

BHP’s shale sale to reap dividends

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Jul-18

BHP Billiton chairman Ken MacKenzie has told shareholders that the resources group hopes to secure at least one deal for its US shale assets by the end of 2018. He said there has been strong interest in the assets due to factors such as US company tax cuts and a rise in the crude oil price. MacKenzie also signalled that BHP is likely to return some of the sale proceeds to shareholders via share buybacks or increased dividends. He also said there is still strong support at boardroom and executive level for BHP’s conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, ELLIOTT MANAGEMENT CORPORATION

BHP’s US shale gets low-ball bid

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Original article by Matt Chambers
The Australian – Page: 20 : 7-Jun-18

A Bloomberg News report has suggested that BHP Billiton is seeking at least $US10bn for its US shale oil and gas assets if they are sold as a package, and up to $US13bn if they are broken up. However, the report claims that the initial offers have been within the range of $US7bn to $US9bn. Peter O’Connor of Shaw & Partners stresses that first-round bids are typically low and will be increased when final bids are submitted. Some analysts expect the recent rise in the crude oil price to boost the sale price of the shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BLOOMBERG LP, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION, PETROHAWK ENERGY CORPORATION, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, THE BLACKSTONE GROUP LP

BHP heads offshore for petroleum growth

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Original article by Matt Chambers
The Australian – Page: 19 : 8-Mar-18

Steve Pastor, the head of BHP Billiton’s petroleum division, is upbeat about the potential of oil fields in the Gulf of Mexico, including the Trion project and the Wildling discovery. BHP will drill another appraisal well at Trion by the end of 2018, followed by two more in 2019. Pastor also says BHP will participate in the Mexican Government’s next auction of exploration permits in the gulf. He adds that there has been strong interest in BHP’s US shale assets, and the company could potentially swap some onshore shale acreage for offshore conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PEMEX PETROLEOS MEXICANOS

Private equity looks at BHP’s shale assets

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Original article by James Thomson
The Australian Financial Review – Page: 15 & 22 : 26-Feb-18

BHP Billiton’s US shale assets are tipped to fetch at least $US10bn. Peter O’Connor of Shaw & Partners notes that this equates to about eight per cent of BHP’s market capitalisation. Energy companies such as Chevron and Anadarko are likely to consider some of the shale assets, which have also attracted interest from private equity firms. The private equity sector has ramped up its investment in energy assets in recent years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED, CHEVRON CORPORATION, ANADARKO PETROLEUM CORPORATION, EOG RESOURCES INCORPORATED, ROYAL DUTCH SHELL PLC, WARBURG PINCUS AND COMPANY, ATX ENERGY PARTNERS, THE BLACKSTONE GROUP LP, EAGLECLAW MIDSTREAM VENTURES, ENERGY TRANSFER PARTNERS LP

Shareholders to get shale sale cash within two years, says BHP

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Original article by Matt Chambers
The Australian – Page: 27 : 24-Aug-17

BHP Billiton will aim to divest its US shale assets within two years, according to CFO Peter Beaven. CEO Andrew Mackenzie had previously indicated that the assets would be sold "relatively quickly". Beaven also said the proceeds of the sale are likely to be distributed to shareholders. Analysts differ regarding the valuation of the shale assets, with sale price forecasts generally ranging from $US7bn to $US10bn. The shale assets currently have a book value of $US14bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, TUDOR PICKERING HOLT AND COMPANY LLC, ANADARKO PETROLEUM CORPORATION

BHP pledges dividend windfall

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 23-Aug-17

BHP Billiton has posted a 2016-17 net profit of $US5.89bn, compared with a loss of $US6.34bn previously, while its underlying profit rose from $US1.215bn to $US6.732bn. The resources group reduced its net debt by $US9.8bn during the financial year, to $US16bn. BHP has flagged plans to divest its US shale assets, with CEO Andrew Mackenzie indicating that the sale of individual assets is preferable to an IPO of the entire business. BHP has also ruled out further investment in the Jansen potash project in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ELLIOTT MANAGEMENT CORPORATION

BHP should sell its US shale assets if price is right: analyst

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Original article by Peter Ker
The Australian Financial Review – Page: 11 : 9-May-17

Deutsche Bank’s Paul Young values BHP Billiton’s US shale assets at around $US6.3bn at present. However, he adds that based on the value of recent deals in the sector, BHP could potentially gain around $US9bn for its Eagle Ford and Permian shale assets. He suggests that BHP should hold off divesting the assets until it can get such a price for them. Young favours using the proceeds of such a sale to reduce debt and invest in conventional oil assets and mining projects. Tribeca Investment Partners also recently advocated the sale of BHP’s US shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, TRIBECA INVESTMENT PARTNERS PTY LTD, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION

BHP puts US shale back on block

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Original article by Paul Garvey
The Australian – Page: 17 & 26 : 27-Apr-17

BHP Billiton has reduced its 2017 forecast for copper production to between 1.33 million and 1.36 million tonnes due to the impact of industrial action at the Escondida mine in Chile. Metallurgical coal output is also expected to be lower due to Cyclone Debbie in Queensland, while iron ore production guidance has been reduced to between 268 million and 272 million tonnes following inclement weather in Western Australia during the March quarter. Meanwhile, BHP has flagged plans to sell its Fayetteville shale gas fields in the US.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AUSTRALIA PTY LTD

BHP keeps the faith in US shale business

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Original article by Peter Ker
The Australian Financial Review – Page: 19 & 24 : 6-Oct-16

The head of BHP Billiton’s petroleum division, Steve Pastor, is upbeat about the group’s US shale operations. He is particularly bullish about the Permian shale field in West Texas, noting that it could potentially become the division’s biggest source of production and cash flow within five years. Meanwhile, Pastor says BHP will consider acquisitions that add value, but it will only pursue deals that are appropriately priced. He has also forecast a global oil shortage in 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BP PLC

Shale oil remains the focus for BHP

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Original article by Matt Chambers
The Australian – Page: 16 : 6-Jan-15

Tim Cutt, CEO of the oil and gas division at Australian-listed resources group BHP Billiton, has reaffirmed plans to divest non-core operations and maintain an emphasis on shale assets in the US. The latter require capital investment worth $US4bn ($A4.95bn) a year, compared with just $US1.5bn for conventional energy projects, and had been purchased for $US20bn in 2011. The strategy is being followed despite the recent rapid decline in the global crude oil price

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES