BHP to exit US shale

The Australian Energy Review - - NEWS - Cameron Drum­mond

“As part Of Our On­go­ing re­view Of Our PORT­FO­LIO, The BOARD AND man­age­ment have De­ter­mined THAT Our On­shore us As­sets Are non-core AND Op­tions TO exit These As­sets Are be­ing Ac­tively pur­sued.”

RE­SOURCES gi­ant BHP will di­vest its on­shore US shale as­sets, af­ter re­ject­ing an April pro­posal from ac­tivist hedge fund in­vestor El­liot As­so­ci­ates’ that it re­struc­ture and di­vest its US pe­tro­leum port­fo­lio.

In its FY17 report, BHP de­ter­mined the as­sets were non-core to its busi­ness af­ter post­ing un­der­ly­ing earn­ings of $US6.7 bil­lion, fall­ing short of an­a­lyst Bloomberg’s me­dian es­ti­mate of $Us7.3bn.

“As part of our on­go­ing re­view of our port­fo­lio, the board and man­age­ment have de­ter­mined that our on­shore US as­sets are non-core and op­tions to exit these as­sets are be­ing ac­tively pur­sued,” BHP said.

“We will be flex­i­ble with our plans and com­mer­cial in our ap­proach. We are ex­am­in­ing mul­ti­ple al­ter­na­tives but will only di­vest for value.

“Ex­e­cu­tion of these op­tions may take time which we will use to con­tinue to com­plete our well tri­als, acreage swaps and in­ves­ti­gate mid-stream so­lu­tions to in­crease the value, prof­itabil­ity and mar­ketabil­ity of our On­shore US acreage.

“In the near term, the sale of a por­tion of the Hawkville is pro­gress­ing and is an­tic­i­pated to be ex­e­cuted in the Septem­ber 2017 quar­ter.”

Im­age: BHP.

bhp said its US shale as­sets were a non-core part of its over­all as­set struc­ture.

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