Features, Oil and Gas News

Woodside completes merger with BHP

Woodside merger

Woodside Energy and BHP have officially 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 and has issued over 900 million new Woodside shares to BHP, which BHP will distribute to eligible shareholders.

The new Woodside shares are to have commenced trading on the Australian Securities Exchange (ASX) on 2 June 2022. Likewise, trading of Woodside American depository shares via the New York Stock Exchange was also expected to commence on the same date.

However, Woodside shares on the main market for listed securities of the London Stock Exchange is expected to commence trading on the 6 June 2022.

Woodside is now a top 10 global independent energy company by hydrocarbon production and is the reportedly the largest energy company listed on the ASX. The company’s now larger and more diversified portfolio is anticipated to deliver significant cash flow.

Furthermore, Woodside will receive net cash of approximately $US1 billion ($1,375,421,000), which includes the money 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 than $0.8 billion representing BHP’s entitlement to cash dividends paid by Woodside over the same period.

Woodside’s net profit (after tax) for the first half of 2022 will incorporate the contribution of the BHP portfolio. Additionally the standardisation of reporting across all jurisdictions will also include the aligning of BHP’s accounting portfolio with Woodside’s policies.

CEO of Woodside Meg O’Neill stated that the completion of the merger is one of the most significant events in the company’s 67-year history and marks the beginning of a new chapter.

“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,” said O’Neill.

“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.”

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