News Releases

Baker Botts Represents BHP Billiton in Sale of Onshore US Assets

Release
HOUSTON, July 26, 2018 - Baker Botts, L.L.P., a leading international law firm, announced today that it has represented BHP Billiton (“BHP”) in its binding agreements for the sale of its entire interests in the Eagle Ford, Haynesville, Permian and Fayetteville Onshore US oil and gas assets for a combined base consideration of US$10.8 billion, payable in cash.
 
As noted in the BHP media release - BP America Production Company, a wholly owned subsidiary of BP Plc, has agreed to acquire 100% of the issued share capital of Petrohawk Energy Corporation, the BHP subsidiary which holds the Eagle Ford, Haynesville and Permian assets, for a consideration of US$10.5 billion (less customary completion adjustments).  One-half of the consideration is payable at completion, with the balance (deferred consideration) being payable in six equal installments over a six-month period, the first installment to be paid one month after completion. Payment of the deferred consideration is not subject to any conditions.
 
MMGJ Hugoton III, LLC a company owned by Merit Energy Company, has agreed to acquire 100% of the issued share capital of BHP Billiton Petroleum (Arkansas) Inc and 100% of the membership interests in BHP Billiton Petroleum (Fayetteville) LLC, which hold the Fayetteville assets, for a total consideration of US$0.3 billion (less customary completion adjustments), payable in cash at completion.
 
Both sales are subject to the satisfaction of customary regulatory approvals and conditions precedent, and we expect completion to occur by the end of October 2018. 
 
“The sale of BHP’s subsidiary, Petrohawk Energy Corporation, is one of the most significant transactions in the oil & gas upstream market in a number of years and we are thrilled to be a part of it. Our teams at Baker Botts worked in tandem with BHP’s worldwide legal team to prepare for and carry-out the Petrohawk and Fayetteville transactions in order to maximize the value of those deals for BHP and its shareholders. Erin Hopkins, a partner in our Houston office, led the sale of Petrohawk, and Craig Vogelsang, a partner in our Houston office, led the sale of the Fayetteville assets.” said Jason Bennett, firmwide chair of Baker Botts’ Global Projects Practice and a partner in the Houston office.
 
BHP will continue to operate the assets until completion and will work closely with the purchaser to ensure a smooth transition of ownership.
 
Baker Botts lawyers involved in the transactions included:
Erin Hopkins (Partner, Houston); Craig Vogelsang (Partner, Houston); Jon Lobb (Partner, Houston); Jason Bennett (Partner, Houston); Scott Janoe (Partner, Houston); Rob Fowler (Partner, Houston); Lindsey Swiger (Senior Associate, Houston); Luke Burns (Senior Associate, Houston); Kasyn Stevenson (Senior Associate, Houston); Alia Heintz (Associate, Houston); Kyle Doherty (Associate, Houston); Katie McEvilly (Associate, Houston); Tiffany Sumrall (Associate, Houston); Joyce Banks (Associate, Houston); Justin Clune (Associate, Houston); Marcella Lunn (Associate, Houston); Taylor Lopez  (Associate, Houston); Munir Saadi (Associate, Houston).

For more information on this acquisition, please read BHP’s news release.

 

ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm of approximately 725 lawyers practicing throughout a network of 14 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy and technology sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.

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