Shares of BHP have jumped over 2% to $34.50 in early trade following the announcement of the sale of their onshore shale assets in the USA.
British Oil giant BP will pay USD 10.5 billion for the bulk of the energy assets, while Texas-based Merit Energy will buy the other $300 million worth of assets.
The company has pledged that the USD 10.8 billion from the sales will be returned to shareholders, but hasn’t been clear about how and when.
BHP has rallied from the April “higher low” formation and is now trading at the upper range of our price target.
Our advice to blog readers in April was to buy BHP and se ll the $35.00 strike call options to enhance the cash flow.