WDS - Woodside Energy Group

[Dona Ferentes]

not sure as a BHP holder I want WPL shares.

The deal would give Woodside scale and streamline ownership of the North West Shelf venture and Scarborough. It would also significantly diversify Woodside’s product and asset base and increase the size of its balance sheet, which could benefit its ability to fund growth, an analyst said.

BHP Petroleum brings a mostly mature asset base, its declining production profile with higher environmental, social and governance risks because of its weighting towards oil, and an expected significant rehabilitation liability in the near term, including for ageing Bass Strait oil and gas fields.

Woodside has a long-term and growing production base, a focus on LNG which can complement renewables in a low-carbon energy mix, and significant franking credits, although with a depressed stock price.

 

[Miner]

not sure as a BHP holder I want WPL shares.





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If I am WPL holder, would not be a great deal for me considering highest risk on Pluto and others will be reduced. BHP has lots of cash and hopefully after one and two years teething problem post merger, it will be a great giant . Yes, immediate post merger gives punters opportunity to buy BHP . Allan Gray is however very prudent fundi and what I do not know if the comment from Simon, is from BHP perspective and what are they telling to their clients holding WPL ?
Do hold BHP and looking for sneaking into WPL

 

[Dona Ferentes]

If I am WPL holder, would not be a great deal for me considering highest risk on Pluto and others will be reduced. BHP has lots of cash and hopefully after one and two years teething problem post merger, it will be a great giant . Yes, immediate post merger gives punters opportunity to buy BHP . Allan Gray is however very prudent fundie and what I do not know if the comment from Simon, is from BHP perspective.. ?
Do hold BHP and looking for sneaking into WPL

Yes this tie-up/ shake-out is an interesting one. If I was less lazy, I would have trimmed the graphic to just have the Current and Post Merger allocations. (Sources close to Woodside noted Mr Mawhinney was commenting before the terms of the deal had been announced and amid speculation that the share that BHP investors would hold in the combined company could be as high as 53 per cent. )

Some of the BHP assets, being more mature, provide strong cash flow, and the spread derisks to an extent the WPL portfolio. It has been said this deal creates another 'Big Australian'.

 

[sptrawler]

The good thing with both BHP and WPL, it only takes one disaster be that material or market based, to present a buying opportunity.

 

[divs4ever]

haven't bought any WPL yet , today

have an sub $20 order in the market currently and am considering dropping it to $19 or just cancelling it

i don't really want a large holding ( for me ) in WPL which is what would happen if BHP spun-off a one for one ( 1 WPL for every BHP held )

 

[Miner]

haven't bought any WPL yet , today

have an sub $20 order in the market currently and am considering dropping it to $19 or just cancelling it

i don't really want a large holding ( for me ) in WPL which is what would happen if BHP spun-off a one for one ( 1 WPL for every BHP held )

Good call.
I am unsure seeing the trend of wpl today that the price will be sub 20 immediately.
The financial result to me, is fantastic.

 

[divs4ever]

went below $20 earlier today ( $19.85 from memory ) before some recovery however i was below $19.50

assuming ( and that is always dangerous ) that the deal goes ahead , how much WPL do i really need

i WAS happy to nibble away say one or two small parcels a year but if the deal goes through the WPL holding might quadruple ( or more )

AND one might ask how will the dilution affect the long term price

yes BPT made their acquisitions a winner , but WPL ???

 

[Miner]

went below $20 earlier today ( $19.85 from memory ) before some recovery however i was below $19.50

assuming ( and that is always dangerous ) that the deal goes ahead , how much WPL do i really need

i WAS happy to nibble away say one or two small parcels a year but if the deal goes through the WPL holding might quadruple ( or more )

AND one might ask how will the dilution affect the long term price

yes BPT made their acquisitions a winner , but WPL ???

Slightly disclaimer, two of our family members working in BHP and Woodside WPL.
So what I say and do are keeping me totally out of the board.
Hence will only comment on information available in public domain.

 

[divs4ever]

Slightly disclaimer, two of our family members working in BHP and Woodside WPL.
So what I say and do are keeping me totally out of the board.
Hence will only comment on information available in public domain.

as should correctly happen

and everybody should make their OWN decisions anyway

cheers

 

[aus_trader]

I don't think there will be 1 to 1 shares offered if there is a merger, after all BHP is a 151b company and WPL is a 20b company.

But a merger will certainly create a giant that'll probably be the biggest company listed on the asx, or 2nd if the combined BHP/WPL entity still can't beat the CBA's bloated market cap.

 

[divs4ever]

well call WPL a $20 share and BHP a $50 share , maybe a $100 share after they collapse ( incorporate ) BHP PLC ( the old Billiton )

and the divested asset are roughly 5% of BHP currently ( either both or just BHP LTD )

so on e $20 WPL share for every BHP share held ( either before or AFTER the BHP PLC delisting ) isn't impossible WPL will double it's assets (in theory ) while BHP will shrink theirs ( again )

a trader buddy thought a $50 ( plus) BHP is 'drunk money' , so where are we in a div. restrained world

so i am still happy to hold BHP ( my av. SP is just under $29 , but that included S32 back then ) just not excited about adding more when over $30 given the current shifting of policies

 

[divs4ever]

UK market set to lose major stock as BHP plans Australia shift​

https://www.investing.com/news/stoc...or-stock-as-bhp-plans-australia-shift-2592172

DYOR

i hold BHP

am not sure i have posted this somewhere else here

( sorry if i have )

 

[Miner]

well call WPL a $20 share and BHP a $50 share , maybe a $100 share after they collapse ( incorporate ) BHP PLC ( the old Billiton )

and the divested asset are roughly 5% of BHP currently ( either both or just BHP LTD )

so on e $20 WPL share for every BHP share held ( either before or AFTER the BHP PLC delisting ) isn't impossible WPL will double it's assets (in theory ) while BHP will shrink theirs ( again )

a trader buddy thought a $50 ( plus) BHP is 'drunk money' , so where are we in a div. restrained world

so i am still happy to hold BHP ( my av. SP is just under $29 , but that included S32 back then ) just not excited about adding more when over $30 given the current shifting of policies

Great posting.
My only suggestion would be bhp has always been there on name even with billiton.
Wpl is a relatively junior.
So my two cents at best the name could be bhp Wpl or just Bhp.
Woodside does not carry the same heritage like bhp carries.
But this discussion really for the chat forum.
I noticed many of our asf gurus like @tech/a , @peter2 , @kennas , @Garpal Gumnut , @greggles[USER=66457]@Dona Ferentes, @debtfree and others (no competition) have not made any comments so far . That worries me

 

[divs4ever]

maybe they are still untangling the complexities of the deal

just the portfolio shifts required by various ETFs will be immense , and then we will have the LICs trying to work out their moves

remember SOME are following the ESG fad , while others will be trying to re-estimate div. yields , and rebalancing the indexes

for instance would you really want a UK focused index fund with it lacking BHP PLC , and in the mess the UK is in not to mention how BP would have to re-invent itself , for the 'Green new deal '

i think key to the WPL deal is how many of the BHP move across to the new company .

but i guess time will tell
BUT if BHP keeps sliding ..... maybe i had better calculate a firm target price , just in case a market shock provides an opportunity , having that order in weeks early has worked for me before ( maybe it will again )

 

[Knobby22]

Also those guys are looking at action.
I am hoping for a bargain if it keeps falling.

 

[divs4ever]

i have a small order in for extra WPL ( @ $19.40 from memory )

BUT i am considering on whether to cancel that order

and if the BHP spinoff proceeds i will probably end up with more WPL that i am comfortable with holding ( unless WPL lifts their game considerably )

remember WPL has some geographically diverse interests already , i don't remember many projects where

so am still nervous and cautious about this move BHP and WPL are already in JV with

 

[peter2]

As a chartist, corporate actions or hypothetical corporate actions that are in the news complicates the interpretation of price action.
WPL has been in such a strong downtrend for many years that it doesn't appear in my weekly scans. It occasionally pops up in the 1stBB daily scan (looking for bullish bars) but they're ignored because the weekly trend is down.

It would be very difficult to anticipate price action or make projections because currently the price is reacting to insto reactions to the news.

IMO oil/gas companies will go the way of AGL and the dodo bird.

 

[sptrawler]

Taking a longer term view from a climate change perspective, the push is on to shut down coal, the only viable replacement in the short term is LNG so the demand will increase IMO.
I don't want to get into the renewables/storage argument, because that will be self resolving, it will be used where it can be used.
But there are a lot of places in the World that can't rely on that outcome, therefore again IMO it will be LNG until such time as something else becomes viable.
So a lot depends on how much LNG is in the deal and how much oil is involved, oil certainly seems to have a much closer use by date.
Just my thoughts. But as Peter2 said and I agree, I wouldn't be buying them for the grandkids.

 

[aus_trader]

I thought there will always be demand for hydrocarbons as energy and for making many of the things that we use on a daily basis. Perhaps used in a more efficient way like Mazda has done with it's skyactive technology to squeeze out every kilojoule of energy from internal combustion engines.

Agree with @sptrawler that reduction in burning coal would need to be met with energy dense alternatives like LNG. So I thought the slump in companies like WPL and BPT were temporary.

 

[sptrawler]

I thought there will always be demand for hydrocarbons as energy and for making many of the things that we use on a daily basis. Perhaps used in a more efficient way like Mazda has done with it's skyactive technology to squeeze out every kilojoule of energy from internal combustion engines.

Agree with @sptrawler that reduction in burning coal would need to be met with energy dense alternatives like LNG. So I thought the slump in companies like WPL and BPT were temporary.

IMO there will be a surge in WPL as the transition from coal happens, the use of LNG will increase, but eventually IMO there will be a move to fully renewables supported by nuclear, it wont be overnight but it will happen.