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
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Permian E&P Midway Energy Partners Secures Backing from Post Oak
2024-02-09 - Midway Energy Partners will look to acquire and exploit opportunities in the Permian Basin with backing from Post Oak Energy Capital.
HighPeak Energy Authorizes First Share Buyback Since Founding
2024-02-06 - Along with a $75 million share repurchase program, Midland Basin operator HighPeak Energy’s board also increased its quarterly dividend.
Why Endeavor Energy's Founder Sold His Company After Years of Rebuffing Offers
2024-02-13 - Autry Stephens', the 85-year-old wildcatter, decision to sell came after he was diagnosed with cancer, according to three people who discussed his health with him.
The One Where EOG’s Stock Tanked
2024-02-23 - A rare earnings miss pushed the wildcatter’s stock down as much as 6%, while larger and smaller peers’ share prices were mostly unchanged. One analyst asked if EOG is like Narcissus.