BHP Billiton acquires Chesapeake's Fayetteville Shale assets for US$4.75 billion
BHP Billiton has acquired Chesapeake Energy's Fayetteville Shale position for US$4.75 billion. This is the biggest single asset deal in the shale gas sector to date, and marks a bold step into unconventional resources for BHP. From a valuation perspective, and for its long-term strategic significance, this looks like an excellent deal for the company. We value the upstream assets at US$4.16 billion (NPV10, in 2011 terms), or at an implied long-term gas price of US$5.82/mcf. This at ...