News: BHP beneficiary of big freeze

.

BHP Billiton Limited (ASX:BHP) is benefiting from the freezing conditions sweeping the US at the moment, with gas prices soaring.

 

Media reports say the mining multinational has been watching US gas prices closely since it spent $US20 billion on US shale acreage in 2011.

 

While gas prices slumped last year, forcing BHP to write down its newly purchased assets, prices have recently taken off and are now well above the levels the company paid for its shale acquisitions in 2011.

 

The cold snap has American households using more gas for heating and gas prices have risen from $US3.83 a unit at the start of December to a 30-month high of $US4.53 a unit.

 

That's above the $US3.89 gas price in February 2011, when BHP paid $US4.75 billion to Chesapeake Energy for shale gas territory in Arkansas.

 

BHP Billiton reported a net profit of $11.9 billion in the 2013 financial year.