Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Merger or Acquisition (February 2011)
12 slides from Bhp's merger presentation, Feb 22, 2011
Slide 1: Fayetteville Acquisition
For personal use only Fayetteville Acquisition J. Michael Yeager Chief Executive, Executive BHP Billiton Petroleum 22 February 2011
Slide 2: Disclaimer
Disclaimer For personal use only Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of
Slide 3: Highlights
Highlights For personal use only 100% of Chesapeake Energy Corporation’s upstream and midstream Fayetteville interests acquired for US$4.75 billion Largest g U.S. shale gas g asset transaction Single, giant field enables focus and is consistent with our corporate strategy gy Substantive BHP
Slide 4: Transaction details
Transaction details For personal use only Agreed price of US$4.75 billion in cash includes US$0.5 billion for midstream interests 487,000 net acres, 415 MMcf/d current production, 2.4 TCF proved reserves, and 10 TCF total risked resource Purchase price of US$1.77 per Mcf for proved reserves or
Slide 5: Unique opportunity to acquire a leadership position in a major North American shale
Unique opportunity to acquire a leadership position in a major p j North American shale For personal use only North American Shale Gas Plays BHP Billiton becomes the second largest acreage holder in the Fayetteville shale Modest topography provides easy operating access Shallower wells with lo
Slide 6: A material asset with room to grow
A material asset with room to grow For personal use only 10 TCF addition is more than 1.7 1 7 Billi Billion 5.4 5 4 Billion BOE BOE double our share of remaining resources at Bass Strait, 3x our 3.7 Billion share of Scarborough, and 7x our BOE share h off B Browse Large percentage of non-proved
Slide 7: Excellent strategic fit
Excellent strategic fit For personal use only World-class accessible resource, material to BHP Billiton ԟ Large, long-life, low cost, with significant future development Access to the world’s largest gas market Lower risk due to adequate production history and extensive delineation drilling
Slide 8: Strong market fundamentals
Strong market fundamentals For personal use only U.S. Natural Gas Demand (Bcf/d) 100 U.S. demand for natural gas set 80 t increase to i 1 1.6% 6% annually ll Power 60 Unconventional gas is the primary 40 I d ti l Industrial source of long long-term term supply Commercial 20 Residential Other H
Slide 9: Significant volume growth potential
Significant volume growth potential For personal use only Development plans to nearly triple production from Fayetteville assets builds upon large upcoming GOM and WA LNG projects Volumes increase to ~500 Mboe/d, with plans to reach ~700 Mboe/d byy the end of the decade Positive impact on indu
Slide 10: Transition plans in place with Petroleum organisation adding value at low cost
Transition plans in place with Petroleum g organisation addingg value at low cost For personal use only Substantially increases onshore gas position and leverages highly experienced personnel Industryy leader in safety, y, drilling, g, project development, and operations performance Highly sca
Slide 11: Conclusions
Conclusions For personal use only Unique q opportunity pp y to acquire q a leadership ppposition in a consolidated shale p play y Consistent with our strategy and adds to portfolio and customer diversity World class resource in largest gas market, low cost and significant immediate production
Slide 12: For personal use only
cdl Oohpbilliton resourcing the future