BHP Billiton has agreed to buy Petrohawk Energy for a total value of $12.5bn.
Under the terms of the agreement, BHP will acquire all issued and outstanding shares of Petrohawk for $38.75 per share.
Petrohawk Energy’s assets cover a 4,046km² area in the US states of Texas and Louisiana, and have an estimated net production of 950 million cubic feet equivalent per day.
The transaction will enable BHP to operate its resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin.
“We believe these premium oil and natural gas assets would benefit significantly by residing within a larger entity that can employ more capital intensity to accelerate their realised value,” said Petrohawk CEO Floyd Wilson.
