Investec's Jonathan Waghorn and Mark Lacey say BHP Billiton's latest acquisition bodes well for the US natural gas sector.
Representing the largest acquisition of a US Exploration & Production company since Exxon acquired US gas producer XTO Energy in 2009, BHP Billiton's latest acquisition of unconventional shale natural gas company Petrohawk Energy highlights both the current attractive valuation of natural gas E&Ps, and the strategic importance of US natural gas, in our view. At prices of $38.75 per share representing a 65% premium to Petrohawk's previous close and an enterprise value of $15bn, this transaction is significant for a number of reasons: Firstly, BHP's status as one of the most respected a...
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