We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Buys BHP Billiton Assets: What Investors Should Know
Read MoreHide Full Article
BP (BP - Free Report) will buy a large portion of BHP Billiton for $10.5 billion. In the midst of an ambitious growth plan, this deal provides an important opportunity for BP and marks a milestone in the company’s effort to turn things around after the fatal catastrophe of the Deepwater Horizon in the Gulf of Mexico in 2010.
This purchase will give the oil giant access to some of the most influential shale patches in the U.S. It has been a growing trend in the oil industry to invest in more shale developments, which are faster to produce as opposed to offshore projects.
BHP, an Australia-based oil company, hasn’t been having such a hot time in the past couple of years after paying around $20 billion to acquire U.S. shale assets in 2011, then spending way too much to explore and develop the areas.
To make things worse, the collapse in oil prices resulted in massive losses for BHP. And now, it seems that the company is trying to sell off some of its businesses to other corporations, including BP. BHP also recently said it would sell its Fayetteville shale business to Merit Energy Co for around $300 million.
With the value of the two deals topping $10 billion, BHP shares were up 2.2% in Sydney today. The company has now announced or completed more than $18 billion of divestments in the last six years.
BP Chief Executive Bob Dudley said this deal is strategic for the company’s shale business and its growth plans. It will let BP have a bigger presence in the booming U.S. energy market, which currently produces large amounts of crude and exports four times as much petroleum each month as it did a decade ago, according to The Wall Street Journal.
BP has some of the best acreages of shale in some of the best basins in U.S, such as the Permian and Eagle Ford basins in Texas, and the Haynesville gas basin that stretches over Texas and Louisiana. Although the British oil giant already has a good stake onshore in the U.S., its portfolio mainly comprises of gas. Now, with the purchase, it can expand its coverage with more oil.
The deal will result in an additional 190,000 barrels a day of oil and gas—a promising outlook for the current oil crisis. It is planned to be completed by the end of October.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
BP Buys BHP Billiton Assets: What Investors Should Know
BP (BP - Free Report) will buy a large portion of BHP Billiton for $10.5 billion. In the midst of an ambitious growth plan, this deal provides an important opportunity for BP and marks a milestone in the company’s effort to turn things around after the fatal catastrophe of the Deepwater Horizon in the Gulf of Mexico in 2010.
This purchase will give the oil giant access to some of the most influential shale patches in the U.S. It has been a growing trend in the oil industry to invest in more shale developments, which are faster to produce as opposed to offshore projects.
BHP, an Australia-based oil company, hasn’t been having such a hot time in the past couple of years after paying around $20 billion to acquire U.S. shale assets in 2011, then spending way too much to explore and develop the areas.
To make things worse, the collapse in oil prices resulted in massive losses for BHP. And now, it seems that the company is trying to sell off some of its businesses to other corporations, including BP. BHP also recently said it would sell its Fayetteville shale business to Merit Energy Co for around $300 million.
With the value of the two deals topping $10 billion, BHP shares were up 2.2% in Sydney today. The company has now announced or completed more than $18 billion of divestments in the last six years.
BP Chief Executive Bob Dudley said this deal is strategic for the company’s shale business and its growth plans. It will let BP have a bigger presence in the booming U.S. energy market, which currently produces large amounts of crude and exports four times as much petroleum each month as it did a decade ago, according to The Wall Street Journal.
BP has some of the best acreages of shale in some of the best basins in U.S, such as the Permian and Eagle Ford basins in Texas, and the Haynesville gas basin that stretches over Texas and Louisiana. Although the British oil giant already has a good stake onshore in the U.S., its portfolio mainly comprises of gas. Now, with the purchase, it can expand its coverage with more oil.
The deal will result in an additional 190,000 barrels a day of oil and gas—a promising outlook for the current oil crisis. It is planned to be completed by the end of October.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>