Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Merger or Acquisition (July 2011)
26 slides from Bhp's merger presentation, Jul 15, 2011
Slide 1: All cash offer for Petrohawk
For personal use only All cash offer for Petrohawk Adding to BHP Billiton’s Tier 1, growth portfolio Marius Kloppers Chief Executive Officer, BHP Billiton J. Michael Yeager Chief Executive, BHP Billiton Petroleum Floyd C. Wilson Chairman and CEO, Petrohawk Energy Corporation 15 July 2011
Slide 2: Disclaimer
Disclaimer For personal use only The tender offer described in this presentation (the “Offer”) has not yet commenced, and this presentation is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Petrohawk Energy Corporation (“Petrohawk”) or any other
Slide 3: Adding to BHP Billiton's Tier 1, growth portfolio
Adding to BHP Billiton’s Tier 1, growth portfolio For personal use only All cash, recommended offer for 100% of Petrohawk Energy Corporation Further underpins our objective to be represented across the full energy product offering as the world’s energy mix evolves Leverages diverse experience
Slide 4: BHP Billiton is a natural owner of large, long-life, high margin shale assets
BHP Billiton is a natural owner of large, long-life, high margin shale assets For personal use only Shales are entering a new stage of the development cycle Industry restructuring will unlock significant future value Ultimate success requires a sustainable approach to growth An excellent str
Slide 5: J. Michael Yeager, Chief Executive, BHP Billiton Petroleum
For personal use only J. Michael Yeager Chief Executive, BHP Billiton Petroleum 15 July 2011
Slide 6: Substantial premium recognises the value of Petrohawk's growth opportunities
Substantial premium recognises the value of Petrohawk’s growth opportunities For personal use only Total enterprise value of approximately US$15.1 billion including approximately US$3.0 billion of assumed net debt(1) Agreed price of US$38.75 per share ‒ 49.5% premium to the 30-trading day prior
Slide 7: Targeting close third quarter 2011
Targeting close third quarter 2011 For personal use only Targeted closing in the third quarter of 2011 EVENT EXPECTED DATE Tender offer to commence by 25 July, open for a Sign Merger minimum of 20 business days Agreement 14 July Closing is subject to required regulatory Commence By 25 July app
Slide 8: Floyd C. Wilson, Chairman and CEO, Petrohawk Energy Corporation
For personal use only Floyd C. Wilson Chairman and CEO, Petrohawk Energy Corporation 15 July 2011
Slide 9: J. Michael Yeager, Chief Executive, BHP Billiton Petroleum
For personal use only J. Michael Yeager Chief Executive, BHP Billiton Petroleum 15 July 2011
Slide 10: Strong market fundamentals
Strong market fundamentals For personal use only The US gas market is the largest in US natural gas demand(1) (Bcf/d) the world 100 Power Non Power An interconnected pipeline system 80 60 allows for the efficient delivery of gas throughout the country 40 20 Demand continues to grow, led by 0 t
Slide 11: Petrohawk – a proven growth profile
Petrohawk – a proven growth profile For personal use only Headquartered in Houston with approximately 650 employees Concentrated portfolio of high quality assets in Texas and Louisiana Approximately one million net acres, with estimated 2011 net production Liquids area of 950 MMcfe/d (158 Mboe
Slide 12: Haynesville & Lower Bossier
Haynesville & Lower Bossier For personal use only Two shale gas reservoirs occupying the same geographic space at different depths Strong position in the core of the play ‒ Estimated 345,000 net risked acres ‒ Largest acreage holder in highest productivity, core area of the play Estimated 2011
Slide 13: Eagle Ford
Eagle Ford For personal use only Liquids rich shale play with significant scale and superior returns De-risked but still early in the development cycle Excellent acreage position ‒ Estimated 332,000 net acres ‒ Black Hawk performance and economics superior to all other operators and regions in
Slide 14: Permian
Permian For personal use only New liquids-rich core shale area recently acquired by Petrohawk ‒ Estimated 325,000 net acres West Texas ‒ Primarily oil Permian North Midland Basin ‒ Significant portions de-risked ‒ 90% operated Delaware South Midland ‒ Highly scalable Basin Basin ‒ Very positive ea
Slide 15: Committed to sustainable development
Committed to sustainable development For personal use only The technology used in shale development is safe when coupled with sound operating practices; and it continues to improve Regulations continue to evolve at the federal and state levels, with ongoing initiatives seeking to protect the env
Slide 16: Strong returns and significant development potential
Strong returns and significant development potential For personal use only Long life, expandable nature of Offshore Shale shale perfectly complements our Oil and Gas existing portfolio and strategic Geologic risk Yes No capability in the deep water Time to first 5+ years Months Individual shale
Slide 17: BHP Billiton will unlock full potential
BHP Billiton will unlock full potential For personal use only Petrohawk’s announced 2011 capital Acceleration of Petrohawk’s development spend (US$ millions, net, real) budget is US$2.85 billion 7,000 BHP Billiton’s strong balance sheet and 6,000 financial flexibility expected to unlock full pot
Slide 18: Substantial volume growth ahead
Substantial volume growth ahead For personal use only Petroleum expected to become a Long term production growth (Mboe/d, net) one million barrel per day business 2,000 within 5 years Sustained volume growth expected 1,500 through the rest of the decade, in combination with existing pipeline of
Slide 19: A significant resource acquisition
A significant resource acquisition For personal use only Petrohawk acquisition more than Combined net risked resources (MMboe) 5.9 Billion 11.3 Billion doubles Petroleum’s existing 12,000 Proved Reserves BOE BOE resource base and increases proved Non-Proved Resource Potential reserves by approxima
Slide 20: A compelling premium for Tier 1 assets and strong organisational capability
A compelling premium for Tier 1 assets and strong organisational capability For personal use only All cash offer of US$38.75 per share, Compelling premium (US$ per share) implying a total equity value of Offer price: US$38.75 per share 40 approximately US$12.1 billion 49.5% 41.2% 61.9% Average 30
Slide 21: Organisational capability
Organisational capability For personal use only Organisational capability has been the driving force behind Petrohawk’s success ‒ Entrepreneurial spirit – pioneer at the Haynesville and Eagle Ford shales ‒ Excellent operating performance and strong functional support teams We are committed to ma
Slide 22: Deal summary
Deal summary For personal use only Excellent strategic fit, fully consistent with our Tier 1 strategy Complements our recent Fayetteville shale acquisition and adds to portfolio diversity Significant increase in resources with sustained production growth ahead Plays to our strengths in drill
Slide 23: Marius Kloppers, Chief Executive Officer, BHP Billiton
For personal use only Marius Kloppers Chief Executive Officer, BHP Billiton 15 July 2011
Slide 24: Adding to BHP Billiton's Tier 1, growth portfolio
Adding to BHP Billiton’s Tier 1, growth portfolio For personal use only Substantial premium represents a unique opportunity for Petrohawk shareholders and recognises the growth opportunities in its portfolio The world will continue to adjust and adapt its energy mix. As a customer focused organi
Slide 25: Reserves disclaimer
Reserves disclaimer For personal use only The SEC permits oil and gas companies to disclose only proved, probable or possible reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating co
Slide 26: For personal use only
cdl bhpbilliton resourcing the future