BHP Speeds Up Plans to Exit U.S. Shale Unit

BHP Billiton's first half profit reached a three-year high, boosting investor returns. Despite this, the company faced pressure from Elliott Management for a corporate overhaul. Analysts noted that while some financial figures were below expectations, the dividend payout exceeded predictions, highlighting the cash generation by mining companies. BHP's strategic decision to exit its US shell business, a problematic investment, aligns with activist investor demands. The company aims to capitalize on positive oil and gas market trends.

What was the main reason BHP Billiton rejected Elliott Management's demands?

• BHP's profits were too low.

• Elliott Management wanted to increase dividends.

• BHP was satisfied with its current corporate structure.

• BHP had already planned a corporate overhaul.

How much of its profits is BHP paying out in dividends?

• 60%

• 50%

• 70%

• 80%

What commodity's price increase significantly helped BHP's financial performance?

• Copper

• Iron Ore

• Gold

• Silver

Why is BHP exiting its US shale business?

• The business was too small.

• The business was problematic and not aligned with investor interests.

• The business was too oily.

• The business was highly profitable.

What year did BHP acquire its US shale business?

• 2009

• 2015

• 2011

• 2013