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BHP Billiton acquires Petrohawk Energy in a US$15.1 billion deal


BHP Billiton acquires Petrohawk Energy in a US$15.1 billion deal

Report summary

BHP Billiton has announced the acquisition of US independent Petrohawk Energy. BHP Billiton will pay US$38.75/share - a 65% premium to Petrohawk's closing share price the day before deal announcement. Including debt, the total consideration is approximately US$15.1 billion, making the transaction the largest in the upstream sector since ExxonMobil's acquisition of XTO in late 2009. We value Petrohawk's upstream portfolio at just over US$13 billion (NPV10, discounted to 1 July ...

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  • BHP Billiton acquires Petrohawk Energy in a US$15.1 billion deal PDF - 531.29 KB 9 Pages, 8 Tables, 3 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Eagle Ford
    • Haynesville
    • Permian
  • Deal analysis
    • Wood Mackenzie Modelling Assumptions
  • Upsides and risks
    • Upsides
    • Risk
  • Strategic rationale
    • BHP Billiton
      • A truly transformation deal
    • Petrohawk
  • Oil & gas pricing and assumptions

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
    • Transaction details: Table 1
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • US$ per mcfe and ILTGP - North American unconventional gas deals
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
    • Large Cap benchmarking - Wood Mackenzie total resources segmented by 1p, 2p and total resource
    • BHP Billiton production - relative to peer group average and total vs targets
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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