The share price of mining giant BHP Billiton Limited [ASX:BHP] grew over 2% in early morning trading, and investors are keeping an eye out for any further gains over the course of the day.
This excitement has been prompted by a throng of reports this morning, revealing that BHP has received first round bids for the US shale portfolio it is looking to offload.
In general, BHP has been enjoying a good performance. Over two years, the mining giant has risen by over 120%, prompted by foreign investor interest and stronger commodity prices. At time of writing, the share price is sitting at AU$33.40.
What’s the story?
Bids have been received, according to Bloomberg, from oil giants BP, Chevron and Royal Dutch Shell in partnership with private equity firm Blackstone.
The first round of bidding values the assets in the range of US$7 billion and US$9 billion. Various media outlets have speculated that BHP could expect to receive offers over US$10 billion in the second round, and up to US$13 billion if it sells off the assets individually.
What does the future hold for BHP?
Earlier this month, Mackenzie said at a mining conference, ‘BHP is set-up for future success. We have a simple, unique portfolio of the very best assets, diversified across attractive commodities.’
BHP has vowed to continue to target a further US$2 billion in productivity gains by the end of the 2019 financial year.
Second round bidding for the shale portfolio commences in July.
Editor, Money Morning
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