Deal Insight
BHP Billiton acquires Chesapeake's Fayetteville Shale assets for US$4.75 billion
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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 ...
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Fayetteville Shale
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Deal analysis
- Wood Mackenzie modelling assumptions
-
Upsides and risks
- Upsides
- Risks
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Strategic rationale
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BHP Billiton
- BHP organic growth outlook
- Chesapeake
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BHP Billiton
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Deal analysis: Table 1
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Wood Mackenzie modelling assumptions
- Deal analysis: Table 2
- Implied Long-term Gas Price sensitivities
- Wood Mackenzie forecast of BHP Billiton production vs. company targets
What's included
This report contains:
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