Deal Insight
BHP sells most of its onshore US assets to BP for US$10.5bn
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The long-anticipated sale of BHP's Lower 48 assets is now in the rear view mirror, executed on schedule as promised by the company. BP is paying US$10.5 billion for the Permian, Eagle Ford, and Haynesville assets. US$5.25 billion of the purchase price will be funded via cash on hand and the remaining US$5.25 billion will be paid in six equal instalments over the subsequent six months. The deal transforms BP's US Lower 48 business and redresses a lack of exposure to low breakeven tight oil. Though we believe BHP's remaining petroleum assets are a differentiating feature for the mining house, it must now consider whether to run these as a cash cow or re-invest for growth.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
-
Strategic rationale
- BP
- BHP
- What does this mean for US tight oil consolidation?
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Executive summary: Table 1
- BHP and offset operator Delaware Basin wells
- BHP operated wells in the Eagle Ford
- Upstream assets: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Majors' global production
- Majors' US Lower 48 shale production (entitlement basis)
What's included
This report contains:
