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BHP to increase free cash flow returns to shareholders, says CEO

BHP Billiton Group CEO Andrew Mackenzie said that the company intends to return a bigger proportion of free cash flows to shareholders in the near future, The Australian Financial Review reported May 16.

According to the report, the mining heavyweight's chief executive indicated that increased shareholder returns were over the horizon, despite all spending decisions hinged on its capital allocation framework, which balances debt reduction with future investment and shareholder returns.

In a separate same-day report by The Australian, Mackenzie said the sale of the company's U.S. shale assets is attracting greater interest due to higher oil prices and U.S. tax reforms, adding that BHP is making good progress with its exit from the onshore energy business. The executive, however, ruled out the sale of conventional oil assets.

BHP is expected to receive more than US$10 billion from the sale of its Permian Basin and Eagle Ford, Haynesville and Fayetteville shales, The Australian Financial Review report noted. BP PLC is said to be considering a deal to acquire some of BHP's U.S. shale assets.