This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

There's a reason why Texas is the number one oil and natural gas producing state in the Union: shale. BHP Billiton (NYSE:BHP) realized this in 2011, when it purchased Petrohawk from Floyd Wilson, now Founder and CEO of Halcon Resources (NYSE:HK). With prime real estate in the Eagle Ford and Permian regions, BHP is prepared to dedicate 67% of its petroleum-focused budget to shale growth. It has also decided to keep shale and conventional energy units separate, much like ExxonMobil (NYSE:XOM) decided to do with XTO Energy. To find out what else it is focusing on to catch up to EOG Resources (NYSE:EOG), tune in to the video below.