Sharenet Sites 
Sharenet Sites
US Shale and Australian Nickel Asset Review
NEWS RELEASE
Release Time IMMEDIATE
Date 3 August 2012
Number 17/12
US SHALE AND AUSTRALIAN NICKEL ASSET REVIEW
BHP Billiton announced today that it has completed its full year assessment of its United
States shale and Australian nickel assets. Low US gas prices due to a short term over
supply of gas have resulted in an impairment of US$2.84 billion (before tax) against the
carrying value of the Fayetteville shale gas assets acquired from Chesapeake Energy in
February 2011. The Company will also recognise a US$450 million (before tax) charge
against the carrying value of its Nickel West assets as a result of margin deterioration. Both
impairments will be recognised as exceptional items. The annual review of the Company’s
non-current assets will be finalised in conjunction with the preliminary financial results to be
released on 22 August 2012.
BHP Billiton CEO, Marius Kloppers, said “The Fayetteville charge reflects the fall in United
States domestic gas prices and the company’s decision to adjust its development plans by
shifting drilling from dry gas to the more liquids rich fields. While we have responded
appropriately to the changed market conditions today’s impairment is clearly disappointing.”
Following a comprehensive review, BHP Billiton has concluded that the value of the more
extensive onshore United States shale liquids and gas assets acquired through the
acquisition of Petrohawk Energy Corporation in August 2011 is not affected. The
development of these assets is expected to create substantial, long term shareholder value.
Mr Kloppers said: “Our decision to enter the North American shale hydrocarbon business
about 18 months ago was taken after extensive deliberation and due diligence. Our work
convinced us that this significant, low-carbon fuel source would play a meaningful role as the
world makes its future energy choices. We are still of this view, particularly given the
ongoing positive technological advancements in the shale industry.
“We believe that our dry gas assets are well positioned for the future given their competitive
position on the industry cost curve. In the short term, the accelerated development of our
liquids rich shales will continue to complement investment in our traditional project pipeline
given the high rates of return on offer and the rapid payback on incremental investment.”
BHP Billiton Chairman, Jac Nasser, said: “The Board remains of the view that the investment
in the US shale assets is the right decision for BHP Billiton shareholders. The assets we
acquired, in particular the substantial Petrohawk business, are of high quality and will
generate good returns for shareholders. The Board supports the actions of Marius and
Petroleum CEO, Mike Yeager, to optimise shareholder value by shifting our current drilling
plans from the dry gas fields in Fayetteville and Haynesville, to the liquids rich fields in the
Permian and Eagle Ford.
“However, it is very disappointing that low US gas prices have impacted the carrying value of
the Fayetteville assets. As a result of the write down both Marius Kloppers and
Mike Yeager have advised the Remuneration Committee that they do not wish to be
considered for a bonus for the 2012 financial year. The Remuneration Committee and the
Board respect and agree with that decision.
“As today’s announcement shows, these are difficult times, particularly for those companies
and their shareholders who are being affected by global uncertainty. We are fortunate to
have Marius’ leadership, together with a strong management team supporting him, in these
challenging times. Notwithstanding the prevailing environment we are confident in the
outlook for the United States natural gas market and the role our shale assets will play in
BHP Billiton’s portfolio in continuing to deliver long term shareholder returns,” Mr Nasser
said.
Further information on BHP Billiton can be found at: www.bhpbilliton.com.
Sponsor: Absa Capital (the investment banking division of Absa Bank Limited, affiliated with
Barclays)
Media Relations Investor Relations
Australia Australia
Antonios Papaspiropoulos James Agar
Tel: +61 3 9609 3830 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 467 807 064
email: Antonios.Papaspiropoulos@bhpbilliton.com email: James.Agar@bhpbilliton.com
Kelly Quirke Andrew Gunn
Tel: +61 3 9609 2896 Mobile: +61 429 966 312 Tel: +61 3 9609 3575 Mobile: +61 439 558 454
email: Kelly.Quirke@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Fiona Martin United Kingdom and South Africa
Tel: +61 3 9609 2211 Mobile: +61 427 777 908
email: Fiona.Martin2@bhpbilliton.com Brendan Harris
Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
United Kingdom email: Brendan.Harris@bhpbilliton.com
Ruban Yogarajah Tara Dines
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 Tel : +44 20 7802 7113 Mobile : +44 7825 342 232
email: Ruban.Yogarajah@bhpbilliton.com Email : Tara.Dines@bhpbilliton.com
Deirdra McCracken Americas
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
Email: Deirdra.S.McCracken@bhpbilliton.com Scott Espenshade
Tel: +1 713 599 6431 Mobile: +1 713 208 8565
Americas email: Scott.Espenshade@bhpbilliton.com
Jaryl Strong
Tel: +1 713 499 5548 Mobile: +1 281 222 6627
email: Jaryl.Strong@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 03/08/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
