BHP Billiton and Petrohawk Energy Corp. have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for $38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately $12.1bn and a total enterprise value of approximately $15.1bn, including the assumption of net debt. The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin. At year-end 2010, Petrohawk reported proved reserves of 69.3 bcm of natural gas equivalent.
The tender offer is expected to commence by 25 July 2011. The acquisition is subject to the terms and conditions set forth in the merger agreement, including a condition that at least a majority of the outstanding Petrohawk shares are tendered. The transaction is expected to close in the third quarter of 2011.