BHP said its US shale assets were a non-core part of its overall asset structure. Image: BHP.
BY CAMERON DRUMMOND
RESOURCES giant BHP will divest its onshore US shale assets, after rejecting an April proposal from activist hedge fund investor Elliot Associates’ that it restructure and divest its US petroleum portfolio.
In its FY17 report, BHP determined the assets were non-core to its business after posting underlying earnings of $US6.7 billion, falling short of analyst Bloomberg’s median estimate of $US7.3bn.
“As part of our ongoing review of our portfolio, the board and management have determined that our onshore US assets are non-core and options to exit these assets are being actively pursued,” BHP said.
“We will be flexible with our plans and commercial in our approach. We are examining multiple alternatives but will only divest for value.
“Execution of these options may take time which we will use to continue to complete our well trials, acreage swaps and investigate mid-stream solutions to increase the value, profitability and marketability of our Onshore US acreage.
“In the near term, the sale of a portion of the Hawkville is progressing and is anticipated to be executed in the September 2017 quarter.”