Top global miner BHP Billiton said on Jan. 15, Australia time, it would book a $4.9 billion post-tax writedown on the value of its U.S. shale assets reflecting the sharp slump in oil and gas prices, volatility and a bleak near-term outlook.
The hefty impairment is the latest spawned by BHP's badly timed push into U.S. shale in 2011, when it spent $17 billion on two acquisitions at a time when oil and gas prices were much higher than they are now.
"Although we expect prices to improve from their current lows, we have reduced our oil price assumptions for the short to medium term," BHP said in a statement to the Australian stock exchange.
The writedowns will take the carrying value of its U.S. onshore assets down to about $16 billion, BHP said.
Recommended Reading
Select Water Solutions Bolts On Haynesville, Rockies Assets for $90MM
2024-01-31 - Select Water Solutions Inc. added disposal and recycling capacity in the Haynesville Shale and the Rockies across three acquisitions in January.
EIG’s MidOcean Energy Acquires 20% interest in Peru LNG
2024-02-08 - On top of acquiring a 20% interest in Peru LNG, MidOcean Energy is also in the process of acquiring interests in four Australian LNG projects.
Moda Closes Sale of Vopak Moda Houston Terminal Interest
2024-01-16 - Moda, backed by EnCap Flatrock Midstream, sold its joint venture interests in the terminal to Madrid’s Exolum.
Sunoco to Acquire NuStar Energy for $7.3B
2024-01-22 - Sunoco LP is adding scale and diversifying its portfolio with its acquisition of NuStar Energy LP, which is expected to close in second quarter 2024.
Enbridge Closes First Utility Transaction with Dominion for $6.6B
2024-03-07 - Enbridge’s purchase of The East Ohio Gas Co. from Dominion is part of $14 billion in M&A the companies announced in September.