BHP Billiton hires Barclays and Citi for US shale gas sale

Date:

BHP Billiton (LON:BLT) has hired Barclays and Citigroup to help it exit its underperforming US shale oil and gas business, Reuters has reported. The move comes after the Anglo-Australian miner recently revealed that it was planning to exit its US shale business, amid pressure from activist investor Elliott Management.

Thank you for reading this post, don't forget to subscribe!

BHP Billiton’s share price has been steady in London this morning, having added 0.58 percent to 1,485.00p as of 08:44 BST, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.24 percent higher at 7,448.67 points. The group’s shares have added just under 52 percent to their value over the past year, and are up by some 13 percent in the year-to-date.

Sources with knowledge of the matter told Reuters yesterday that BHP had hired Barclays and Citigroup to help it exit its underperforming US shale oil and gas business, which could fetch around $10 billion (£7.76 billion).

“The sellside advisors have only invited strategic players to bid for the onshore business at this point, which is likely to be sold in separate packages, some of which will draw more interest than others,” one source told the newswire. Another source meanwhile noted that companies like “Chevron, Occidental and Exxon Mobil are all capable of doing this kind of deal, so the Permian and Eagle Ford assets will be an easy sale”.

“Gas-rich Haynesville and Fayetteville may be less attractive,” the source added, as quoted by Reuters.

The news comes after BHP recently said that it was “actively pursuing options to exit” its US non-shore assets. The blue-chip miner is further planning to sell its Nickel West division, which operates in Western Australia, and was stranded as an orphan asset after it was not included in the FTSE 100 miner’s spin-off of South32.

As of 09:08 BST, Friday, 01 September, BHP Billiton plc share price is 1,482.00p.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

“FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison for Fraud”

FTX founder Sam Bankman-Fried received a 25-year prison sentence...

Nigeria’s Access Holding eyes $1.5 bln share or bond sale

ABUJA, March 28 - Nigeria's Access Holding Plc (ACCESSCORP.LG),...

“AfDB Invests $75 Million in Indorama for Fertilizer Expansion”

The African Development Bank has inked a $75 million...

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading