Arab Today, arab today bhp unveils 121 bln merger with petrohawk
Last Updated : GMT 06:51:35
Arab Today, arab today
Arab Today, arab today

BHP unveils $12.1 bln merger with Petrohawk

Arab Today, arab today

Arab Today, arab today BHP unveils $12.1 bln merger with Petrohawk

Sydney - AFP

Anglo-Australian mining giant BHP Billiton Friday unveiled a $12.1-billion takeover of US firm Petrohawk Energy Corp. that will allow it to tap into the lucrative US shale gas market. BHP will pay $38.75 a share, but the total value of the acquisition will be $15.1 billion including Petrohawk\'s debt, in a deal that will give BHP access to huge shale assets in Texas and Louisiana, the two companies said. \"The proposed acquisition of Petrohawk is consistent with our... strategy and provides us with even greater exposure to the world’s largest energy market, while also broadening our geographic and customer spread,\" BHP chief executive Marius Kloppers said. The agreed sale price represents a 65 percent premium on Petrohawk\'s closing share price on Thursday, offering an indication of BHP\'s keenness to be a major player in the fast-growing US natural gas market. But the Sydney- and London-listed resources giant\'s share price fell sharply on news of the acquisition, closing 1.63 percent lower at Aus$42.89 after hitting a two-week low in early trading. BHP said it would now be on track to deliver compound annual production growth of more than 10 percent for the rest of the decade as it develops its shale gas and deepwater resources. The move marks a major new step in the bid by BHP, one of the world\'s biggest miners, to diversify from minerals and mining into oil and gas. It follows BHP\'s purchase earlier this year of US-based Chesapeake Energy Corp\'s shale gas holdings in the state of Arkansas, along with some pipeline assets, for about $4.75 billion in cash. Petrohawk\'s Eagle Ford and Haynesville shales and its Permian Basin resources cover 400,000 hectares (one million acres). The fields boasted proved reserves of 3.4 trillion cubic feet of natural gas equivalent in 2010 and were expected to produce about 950 million cubic feet (27 million cubic metres) of natural gas equivalent in 2011. The Houston-based firm expects to produce the equivalent of 158,000 barrels of oil a day in 2011, has around $8.2 billion in gross assets and posted a $390 million pre-tax profit for the year to December 2010. Oil and gas companies have been homing in on shale gas acquisitions as they bank on increasing demand spurred by the long-term prospects for the United States to cut its dependence on overseas natural resource imports. Analysts said that BHP\'s merger with Petrohawk would likely be a good one for it in the longer term, despite the premium it has agreed to pay. \"The biggest story is that natural gas is going to be a huge part of America\'s total energy demand and Petrohawk is well positioned to take advantage of that,\" said IG Markets institutional dealer Chris Weston. The Petrohawk board has unanimously recommended that the firm\'s shareholders accept the offer, the firms said. \"We believe these premium oil and natural gas assets would benefit significantly by residing within a larger entity that can employ more capital intensity to accelerate their realised value,\" said Petrohawk chief Floyd Wilson. \"We are excited to see this transaction completed and to be part of the BHP Billiton organisation,\" he said of the deal under which BHP will retain Petrohawk\'s staff. The acquisition is expected to close within the next three months and BHP\'s Kloppers said he did not see any major regulatory hurdles to the deal.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bhp unveils 121 bln merger with petrohawk Arab Today, arab today bhp unveils 121 bln merger with petrohawk

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bhp unveils 121 bln merger with petrohawk Arab Today, arab today bhp unveils 121 bln merger with petrohawk

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday