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BIL 201507150004A
Onshore US Asset Review
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 15 July 2015
Number 14/15
ONSHORE US ASSET REVIEW
BHP Billiton expects to recognise an impairment charge of approximately US$2 billion post-
tax (or approximately US$2.8 billion pre-tax) against the carrying value of its Onshore US
assets as an exceptional item in the 2015 financial year results.
The gas focused Hawkville field accounts for the substantial majority of this charge reflecting
its geological complexity, product mix, acreage relinquishments and amended development
plans. The remainder relates to the impairment of goodwill associated with the Petrohawk
acquisition.
Following this impairment, the Group’s Onshore US business will have net operating assets
of approximately US$24 billion(1). The value of this business is supported by ongoing cost
reductions and improving well performance which help offset increased commodity price
volatility and lower near term capital expenditure. Consistently positive results from the
appraisal and development of the Permian have also unlocked significant value and we now
see the ultimate potential of this field at over 150 kboe/d (up from our previous estimate of
100 kboe/d.
BHP Billiton Petroleum President, Tim Cutt, said: “While the impairment of the Hawkville is
disappointing, it does not reflect the quality of our broader Onshore US business. The Black
Hawk continues to exceed expectations, the Permian offers significant upside across
multiple zones and the Haynesville, one of the industry’s premier dry gas positions, provides
an excellent development option as market conditions improve. With industry-leading drilling
costs and recoveries, we are well positioned to realise significant value for shareholders as
we develop our high-quality resource base.”
BHP Billiton plans to invest US$1.5 billion in the Onshore US in the 2016 financial year,
which will support a development program of 10 operated rigs. At an oil price of US$60 per
barrel (West Texas Intermediate) and a gas price of US$3.00 per Mscf (Henry Hub), the
Group expects its Onshore US business to be free cash flow positive in the 2016 financial
year. Associated production guidance will be provided in the June 2015 Operational Review
to be released on 22 July 2015.
The broader carrying value assessment of the Group’s assets will be finalised in conjunction
with the preliminary financial results to be released on 25 August 2015.
(1) This excludes approximately US$4 billion deferred tax liability.
Sponsor: Merrill Lynch South Africa Proprietary Limited
Further information on BHP Billiton can be found at: www.bhpbilliton.com.
Media Relations Investor Relations
Australia Australia
Emily Perry Tara Dines
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email: Emily.Perry@bhpbilliton.com email: Tara.Dines@bhpbilliton.com
Paul Hitchins Andrew Gunn
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email: Paul.Hitchins@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Eleanor Nichols United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748
email: Eleanor.Nichols@bhpbilliton.com Jonathan Price
Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
United Kingdom and Americas email: Jonathan.H.Price@bhpbilliton.com
Ruban Yogarajah Dean Simon
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 Tel: +44 20 7802 7461 Mobile: +44 7717 511 193
email: Ruban.Yogarajah@bhpbilliton.com email: Dean.Simon@bhpbilliton.com
Jennifer White Americas
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
email: Jennifer.White@bhpbilliton.com James Agar
Tel: +1 212 310 1421 Mobile: +1 347 882 3011
email: James.Agar@bhpbilliton.com
Joseph Suarez
Tel: +1 212 310 1422 Mobile: +1 646 400 3803
email: Joseph.Suarez@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: Level 16, 171 Collins Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1LH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
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