🕐03.08.12 - 02:27 Uhr
BHP BILLITON NEWS
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Latest News Updates
[2]US Shale and Australian Nickel Asset Review
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http://www.bhpbilliton.com/home/investors/news/Pages/Articles/US-Shale-and-Australian-Nickel-Asset-Review.aspx
August 03, 2012
BHP Billiton announced today that it has completed its full year
assessment of its United States shale and Australian nickel assets.
Low
US gas prices due to a short term over supply of gas have resulted in
an impairment of US$2.84 billion (before tax) against the carrying
value of the Fayetteville shale gas assets acquired from Chesapeake
Energy in February 2011.
The Company will also recognise a US$450
million (before tax) charge against the carrying value of its Nickel
West assets as a result of margin deterioration.
Both impairments will
be recognised as exceptional items.
The annual review of the Companyâs
non-current assets will be finalised in conjunction with the
preliminary financial results to be released on 22 August 2012.
BHP Billiton CEO, Marius Kloppers, said âThe Fayetteville charge
reflects the fall in United States domestic gas prices and the
companyâs decision to adjust its development plans by shifting drilling
from dry gas to the more liquids rich fields.
While we have responded
appropriately to the changed market conditions todayâs impairment is
clearly disappointing.â
Following a comprehensive review, BHP Billiton has concluded that the
value of the more extensive onshore United States shale liquids and gas
assets acquired through the acquisition of Petrohawk Energy Corporation
in August 2011 is not affected.
The development of these assets is
expected to create substantial, long term shareholder value.
Mr Kloppers said: âOur decision to enter the North American shale
hydrocarbon business about 18 months ago was taken after extensive
deliberation and due diligence.
Our work convinced us that this
significant, low-carbon fuel source would play a meaningful role as the
world makes its future energy choices.
We are still of this view,
particularly given the ongoing positive technological advancements in
the shale industry.
"We believe that our dry gas assets are well positioned for the future
given their competitive position on the industry cost curve.
In the
short term, the accelerated development of our liquids rich shales will
continue to complement investment in our traditional project pipeline
given the high rates of return on offer and the rapid payback on
incremental investment.â
BHP Billiton Chairman, Jac Nasser, said: âThe Board remains of the view
that the investment in the US shale assets is the right decision for
BHP Billiton shareholders.
The assets we acquired, in particular the
substantial Petrohawk business, are of high quality and will generate
good returns for shareholders.
The Board supports the actions of Marius
and Petroleum CEO, Mike Yeager, to optimise shareholder value by
shifting our current drilling plans from the dry gas fields in
Fayetteville and Haynesville, to the liquids rich fields in the Permian
and Eagle Ford.
âHowever, it is very disappointing that low US gas prices have impacted
the carrying value of the Fayetteville assets.
As a result of the write
down both Marius Kloppers and Mike Yeager have advised the Remuneration
Committee that they do not wish to be considered for a bonus for the
2012 financial year.
The Remuneration Committee and the Board respect
and agree with that decision.
"As todayâs announcement shows, these are difficult times, particularly
for those companies and their shareholders who are being affected by
global uncertainty.
We are fortunate to have Mariusâ leadership,
together with a strong management team supporting him, in these
challenging times.
Notwithstanding the prevailing environment we are
confident in the outlook for the United States natural gas market and
the role our shale assets will play in BHP Billitonâs portfolio in
continuing to deliver long term shareholder returns,â Mr Nasser said.
[3]Read on
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http://www.bhpbilliton.com/home/investors/news/Pages/Articles/US-Shale-and-Australian-Nickel-Asset-Review.aspx
Other News
[4]BHP Billiton Exploration and Development Report for the Quarter Ended 30
June 2012
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http://www.bhpbilliton.com/home/investors/news/Pages/Articles/BHP-Billiton-Exploration-and-Development-Report-for-the-Quarter-Ended-30-June-2012.aspx
July 18, 2012
[5]BHP Billiton Production Report for the Year Ended 30 June 2012
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http://www.bhpbilliton.com/home/investors/news/Pages/Articles/BHP-Billiton-Production-Report-for-the-Year-Ended-30-June-2012.aspx
July 18, 2012
[6]Building Momentum in Base Metals
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http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Building-Momentum-in-Base-Metals.aspx
June 27, 2012
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