By Mikaila Adams
Oil & Gas Financial Journal

Days after the July 14 announcement by Australia’s BHP Billiton Ltd. of its acquisition of Houston-based Petrohawk Energy Corp. (NYSE: HK) for US$15.1 billion, analysis about future trends in the highly attractive unconventional resources space began to surface.

As one of the largest shale gas and oil producers in the US, Petrohawk had shored up 2010 proved reserves of 565.3 MMboe (96% gas) valued at $26.71/boe, compared to the $17.91/boe pre-transaction valuation. The acquisition by BHP of Petrohawk reinforces the trend of supermajors—Chevron, Shell, and ExxonMobil—gaining entry into the unconventional resources space in the quest to add natural gas shale and oil to their large portfolios. But are new patterns emerging?

In February,BHP picked up significant Fayetteville Shale properties in Arkansas from Chesapeake Energy Corp. for US$4.75 billion. Because of the company’s lack of experience onshore, it hired Chesapeake to remain as the operator for some time. In this transaction, however, not only did BHP pick up operations of people familiar with the Fayetteville Shale, but they picked up operations in three other areas (Haynesville, Eagle Ford, and Permian Basin), noted Jefferies & Co. Inc. in a report to investors.

What is of particular interest, noted Jefferies, is that “BHP is the first non-North American company to buy significant US onshore operations that is a new entrant.” One trend could be the steady influx of foreign operators into the plays. 

Another could be an increasing number of independents willing to sell themselves outright. 

As the deals continue, the integrated are becoming more comfortable “moving from a no-op JV position to outright ownership of shale assets as they become more comfortable with the development of the plays,” said financial services firm Stifel Nicolaus & Co. in a report to investors.

As their comfort level improves, the large integrated companies may be willing to shell out the kind of money needed to get independents to agree to sell.

While Petrohawk’s acquisition came as no surprise to some—“since inception, HK was built to sell and this was always going to be the exit, in our view,” noted Jefferies, other companies have previously taken a different stance. But, as takeout offers increase, those whose development funding methods had previously been comprised of selling equity, entering joint venture agreements, and selling non-core asset may discover a willingness to sell outright.