WDS - Woodside Energy Group

[Garpal Gumnut]

there is a narrative to reduce/stop investment capital in fossil fuel projects ( especially in the US ) , now apart from that , we are coming into a period where cashed up investors ( that aren't pension-funds ) are going to demand higher returns , and ALSO WPL be will be operating in locales they haven't previously explored ( business-wise ) , so i am guessing there will be costs/expenses they won't have foreseen ( especially with broke governments trying to raise revenue )

now yes i agree where possible you should always borrow in YOUR native currency ( FX changes can be a killer ) but Australia isn't an unlimited piggy-bank and WPL will suddenly almost double in size , WPL might easily need to borrow more than what is available in Australia

I understand your points, good ones, I might say.

I was referring mainly to the Petrodollar $USD being assaulted by other currencies as a de facto external safe reserve currency.

I believe the $AUD though never ever rising to that of the percentage of the external reserves of the $USD, will bite in to the US share which will be subject to attack ( for want of a better word ) by the yuan and rubel.

So being listed externally for WPL will be a good thing. It will be backed by a currency rising in percentage terms held by foreign banks.

Now whether the future works out as simply as that is quite another matter.

gg

 

[divs4ever]

I understand your points, good ones, I might say.

I was referring mainly to the Petrodollar $USD being assaulted by other currencies as a de facto external safe reserve currency.

I believe the $AUD though never ever rising to that of the percentage of the external reserves of the $USD, will bite in to the US share which will be subject to attack ( for want of a better word ) by the yuan and rubel.

So being listed externally for WPL will be a good thing. It will be backed by a currency rising in percentage terms held by foreign banks.

Now whether the future works out as simply as that is quite another matter.

gg

i deliberately avoided the petrodollar adventure , because to quote a friend on a different event that happened to the US , ' that has been coming for a long while ' meaning if you bully and blackmail often enough , somebody will say and MEAN .. NO more ( or in this case NYET ) , interestingly it is the Saudis that have made this effective ( both in the rise and fall of the Petro-dollar )

now contrarian me thinks China does NOT want to be the reserve currency , but would be happy to be an important part of a currency bloc or in a basket of currencies where China can still use fiscal levers to help control it's economy , but have influence in the global economy when needed

have held and watched BPT double in size for a transformational acquisition and manage not to implode , i wonder if WPL can manage similar ( but on a global scale )

on a different topic , given there is pressure put on China ( and India ) to collaborate in the current bully campaign , one must wonder if China will start being more friendly to several ( energy-producing ) sanctioned countries , especially those needy of investment capital .

 

[Dona Ferentes]

WPL will be a top ten global independent producer.

Oddly, will be pursuing secondary listings on the NYSE and LSE when other Aussie companies, like BHP and WBC, are trimming that fat.

Of course all is moot without shareholder approval.

Woodside Petroleum has followed up its application to list its shares in London with a similar application for a New York listing as it prepares for its merger with BHP’s petroleum business, a combination now worth about $63 billion as their share prices have surged.

The listing of American Depositary Shares on the New York Stock Exchange is expected to become effective once the merger completes, which is targeted for June 1, assuming a positive vote by Woodside shareholders on May 19...

The secondary listings of shares in London and New York are part of Woodside’s strategy to hold on to the raft of new shareholders that will result from the scrip-based merger deal, in which almost 914.8 million new Woodside shares will be distributed to BHP shareholders as payment for the petroleum business.

... I'll keep my WPL shares. For a while, because this oil price shock has a way to go. Either 7 million Russian barrels gets taken out (Germany, are you listening)?) or the war continues.

 

[divs4ever]

Woodside Petroleum has followed up its application to list its shares in London with a similar application for a New York listing as it prepares for its merger with BHP’s petroleum business, a combination now worth about $63 billion as their share prices have surged.

The listing of American Depositary Shares on the New York Stock Exchange is expected to become effective once the merger completes, which is targeted for June 1, assuming a positive vote by Woodside shareholders on May 19...

The secondary listings of shares in London and New York are part of Woodside’s strategy to hold on to the raft of new shareholders that will result from the scrip-based merger deal, in which almost 914.8 million new Woodside shares will be distributed to BHP shareholders as payment for the petroleum business.

... I'll keep my WPL shares. For a while, because this oil price shock has a way to go. Either 7 million Russian barrels gets taken out (Germany, are you listening)?) or the war continues.

sorry Germany is tone-deaf ( or suicidal ) , Russia will be fine whatever happens ( compared to everybody else )

the main casualty will be the petrodollar

 

[Telamelo]

Woodside Petroleum has followed up its application to list its shares in London with a similar application for a New York listing as it prepares for its merger with BHP’s petroleum business, a combination now worth about $63 billion as their share prices have surged.

The listing of American Depositary Shares on the New York Stock Exchange is expected to become effective once the merger completes, which is targeted for June 1, assuming a positive vote by Woodside shareholders on May 19...

The secondary listings of shares in London and New York are part of Woodside’s strategy to hold on to the raft of new shareholders that will result from the scrip-based merger deal, in which almost 914.8 million new Woodside shares will be distributed to BHP shareholders as payment for the petroleum business.

... I'll keep my WPL shares. For a while, because this oil price shock has a way to go. Either 7 million Russian barrels gets taken out (Germany, are you listening)?) or the war continues.

Petroleum merger on track to be finalised on 01/06/2022 - new code WDS commences trading on the ASX 02/06/2022.

Meanwhile, all current BHP shareholder's as of close of business today i.e. 24/05/2022 will receive 1 free WPL (soon to be WDS) share for every 5.534 BHP shares held (as of c.o.b today 24/05/2022).

 

[System]

On May 25th, 2022, Woodside Petroleum Ltd (WPL) changed its name and ASX code to Woodside Energy Group Ltd (WDS).

 

[Telamelo]

On May 25th, 2022, Woodside Petroleum Ltd (WPL) changed its name and ASX code to Woodside Energy Group Ltd (WDS).

and BHP gone "ex-dividend today" on merger of petroleum asset's with WDS taking effect 01/06/2022

 

[divs4ever]

and BHP gone "ex-dividend today" on merger of petroleum asset's with WDS taking effect 01/06/2022

was thinking BHP would drop a little more today

ALSO there is a theory that SOME fund managers will be obliged to sell the new WDS entitlement so June might be a little tense for WDS holders

 

[Garpal Gumnut]

was thinking BHP would drop a little more today

ALSO there is a theory that SOME fund managers will be obliged to sell the new WDS entitlement so June might be a little tense for WDS holders

gg

 

[Dona Ferentes]

Woodside Energy was expressing confidence that the price of liquified natural gas would remain high for the rest of 2022, while reports emerged on Friday of a slide in China’s imports of LNG in May.

Reuters said that a combination of high prices and weak manufacturing due to COVID-19 lockdowns had crimped demand for gas while China’s coal-fired power stations maintained high levels of stocks, unlike last year when electricity rationing was starting out in some parts of the country.

Reuters reported that gas use has fallen further in May as a COVID resurgence caused extended lockdowns across several manufacturing hubs, signalling a slide in future demand that has already shown itself in weak orders for July.

Even for shipments arriving in July, industrial consumers are not placing orders, a Chinese trader told Reuters. LNG imports will likely fall as much as 19% this year – by 1 to 15 million tonnes – in what would be the first sizeable drop since China began importing the gas in 2006, according to forecasts by S&P Global Commodity Insights, Wood Mackenzie and SIA Energy.

That in turn will take some pressure off Europe and allow the unneeded gas to be diverted there to meet shortfalls in Russian supplies.

 

[divs4ever]

WOODSIDE COMPLETES MERGER WITH BHP PETROLEUM

Woodside Energy Group Ltd (Woodside) and BHP Group Limited (BHP) have completed the merger of
Woodside with BHP’s oil and gas portfolio to create a global energy company.
Woodside has acquired the entire share capital of BHP Petroleum International Pty Ltd (BHPP) and
issued 914,768,948 new Woodside shares to BHP, which BHP will distribute to its eligible shareholders.
Woodside will receive net cash of approximately US$1 billion, which includes the cash remaining in the
BHPP bank accounts immediately prior to completion. This reflects $1.8 billion of net cash flows
generated by BHPP between the effective date of 1 July 2021 and completion, less $0.8 billion
representing BHP’s entitlement to cash dividends paid by Woodside over the same period.
All completion payment entitlements are subject to a customary post-completion review which may
result in an adjustment.
The new Woodside shares are expected to commence trading on the Australian Securities Exchange
(ASX) on 2 June 2022. Trading of Woodside American Depositary Shares on the New York Stock
Exchange is expected to commence on 2 June 2022. Trading of Woodside shares on the Main Market
for listed securities of the London Stock Exchange is expected to commence on 6 June 2022.
As a result of the merger, Woodside is a top 10 global independent energy company by hydrocarbon
production and the largest energy company listed on the ASX.1 The larger, more diversified portfolio is
expected to deliver significant cash flow to help fund committed projects, Woodside’s participation in
the energy transition and shareholder returns.
Woodside has commenced activities to integrate the two organisations, including standardisation of
reporting across all jurisdictions. The updated production guidance, reserves position and other related
information will be released in due course.
1 Woodside analysis of independent energy companies excludes government-backed national oil
companies, companies with free float less than 60%, major integrated oil and gas companies and
Canadian oil sands companies.
Page 2 of 3
Woodside’s net profit after tax for the first half of 2022 will incorporate the contribution of the BHPP
portfolio from completion and the accounting treatment of the BHPP portfolio will align with Woodside’s
policies.
Woodside CEO Meg O’Neill said completion of the merger was one of the most significant events in
Woodside’s 67-year history and marked the start of a new chapter for the company.
“Today, Woodside begins its journey as a global company, becoming a bigger supplier of the energy
that the world needs right now and will continue to demand in the future.
“The merger delivers a diverse portfolio of quality operating assets, plus a suite of growth opportunities
across oil, gas and new energy that promises ongoing value for our shareholders.
“We believe the completion of the merger will enable Woodside to play a more significant role in the
energy transition that is imperative as we respond to climate change while ensuring reliable and
affordable supplies of energy to a growing and aspirational global population.
“The merger combines the best of our two organisations, providing the leadership and technical
expertise necessary to help Woodside thrive in a dynamic and competitive industry.
“We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two
businesses.
“It is exciting to welcome the BHP Petroleum team to Woodside Energy and start delivering on our
shared vision for the future,” she said.

==============================================================================

i hold BHP and WDS

 

[Sean K]

What sort of dividends can we expect from the combined unit? Do they have a policy of a certain % of profits, or playing it by ear? They are going to make a motza this year.

 

[divs4ever]

What sort of dividends can we expect from the combined unit? Do they have a policy of a certain % of profits, or playing it by ear? They are going to make a motza this year.

well they rebranded so i am guessing playing it by ear , they have either got to remove SOME management or increase management

that alone should be a big distraction

 

[Sean K]

well they rebranded so i am guessing playing it by ear , they have either got to remove SOME management or increase management

that alone should be a big distraction

They do have a big bill coming up with Scarborough and Pluto-2, so maybe a lot depends on ongoing oil price and the final bill.

 

[Dona Ferentes]

What sort of dividends can we expect from the combined unit? Do they have a policy of a certain % of profits, or playing it by ear? They are going to make a motza this year.

• Merged entity dividend policy based on NPAT with minimum 50% payout ratio
• Additional opportunities to provide returns through special dividends and share buybacks
• Eligible Australian shareholders of merged entity benefit from franking credit balance

from Merger Investor Presentation April 2022

 

[Dona Ferentes]

well they rebranded so i am guessing playing it by ear , they have either got to remove SOME management or increase management

• Significant reduction in executive level positions and management layers
• Removal of duplicative or overlapping staffing levels
• Synergies expected to be fully implemented by early 2024
• One-off costs of ~$500 –600 million to deliver synergies

from Merger Investor Presentation April 2022

that alone should be a big distraction

and the possibility to have planned this, leading up to the merger?? As you said "guessing"

 

[divs4ever]

everyone has a plan , until they get punched in the face

- Mike Tyson

and WPL had it's missed timelines , MAYBE that will get better

$500 million is a lot of synergies to recover , just saying

BPT managed to double in size a while back , let's see if WDS can do similar without choking

 

[Dona Ferentes]

In preparing for battle I have always found that plans are useless but planning is indispensable.

- Dwight D. Eisenhower

 

[Telamelo]

WDS gained +4.8% on 44M+ volume traded already this morning

 

[Dona Ferentes]

There was always going to be a bunch of BHP investors that couldn’t take Woodside shares as compensation for the miner’s petroleum business, meaning selling for months or weeks post the deal’s completion.

Instead, BHP hired JP Morgan to rustle the sellers together and put together a block trade. JP Morgan launched it as early as it could: after market on Wednesday. The equities desk was auctioning 38 million shares, and settled to sell them for $29.15 each or a 3.4 per cent discount to the last close.

and now that's not hanging over the market ! No more discounted stock around to confuse things. Onward and upward.