THE BHP GROUP
Overview
We are BHP, a
leading global resources company. Our purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources.
Our strategy is to own and operate large, long-life,
low-cost,
expandable, upstream assets diversified by commodity, geography and market. Consistent with this
strategy, our plan is to create long-term shareholder value.
We are among the worlds top producers of major
commodities, including iron ore, metallurgical coal and copper. We also have substantial interests in oil, gas and energy coal. We have a simple and diverse portfolio of tier one assets around the world, with
low-cost
options for future growth and value creation. Our assets are high quality, largely located in
low-risk
locations and have strong development potential. In
addition to having the right assets in the right commodities, we also create value through how we operate our assets. Our assets, operations and interests are separated into three business units. These businesses are:
Each of BHP Billiton Limited and BHP Billiton Plc is a member of the Group. BHP is a dual listed company structure comprising BHP
Billiton Limited and BHP Billiton Plc. The two entities continue to exist as separate companies but operate as a combined group known as BHP.
The headquarters of BHP Billiton Limited and the global headquarters of the combined Group are located in Melbourne, Australia. The headquarters of BHP Billiton Plc is located in London, United Kingdom.
Both companies have identical Boards of Directors and are run by a unified management team. Shareholders in each company have equivalent economic and voting rights in the Group as a whole.
BHP Billiton Limited has a primary listing on the Australian Securities Exchange (ASX) in Australia and BHP Billiton Plc has
a premium listing on the UK Listing Authoritys Official List and its ordinary shares are admitted to trading on the London Stock Exchange (LSE) in the United Kingdom. BHP Billiton Plc also has a secondary listing on the
Johannesburg Stock Exchange in South Africa. In addition, BHP Billiton Limited and BHP Billiton Plc are listed on the New York Stock Exchange (NYSE) in the United States. Trading on the NYSE is in the form of American Depositary Receipts
(ADRs) evidencing American Depositary Shares (ADSs), with each ADS representing two ordinary shares of BHP Billiton Limited or BHP Billiton Plc. Citibank N.A. is the Depositary for both ADS programs. BHP Billiton
Limiteds ADSs have been listed for trading on the NYSE (ticker BHP) since May 28, 1987 and BHP Billiton Plcs since June 25, 2003 (ticker BBL).
As at June 30, 2018, we had a market capitalization of approximately US$128 billion. For the fiscal year ended June 30, 2018, we reported net operating cash flow of US$18.5 billion,
profit after taxation from Continuing and Discontinued operations attributable to BHP Shareholders of US$3.7 billion and revenue from Continuing operations of US$43.6 billion. As of June 30, 2018, our workforce was comprised of over
62,000 employees and contractors.
Recent Developments
Agreement for sale of Onshore US
On July 27, 2018, BHP
announced it had entered into 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. 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). 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). Both sales are subject to the satisfaction of
customary regulatory approvals and conditions precedent.
For IFRS accounting purposes, Onshore US is treated as Discontinued
operations in BHPs unaudited financial information as of and for the year ended June 30, 2018 included in the report on Form
6-K
of BHP Billiton Limited and BHP Billiton Plc furnished to the SEC on
August 21, 2018. In addition, the financial information as of and for each of the fiscal years ended June 30, 2016 and June 30, 2017 included in the report on Form
6-K
of BHP Billiton Limited
and BHP Billiton Plc furnished to the SEC on August 21, 2018 has also been restated to give effect to IFRS 5
(Non-current
Assets Held for Sale and Discontinued Operations) following the announced
agreement for the sale of Onshore US, as further described therein, and such restated financial information is unaudited.
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