Woodside (ASX:WDS) acquires BHP Petroleum to create global energy company

• Woodside Energy (WDS) completes its acquisition of BHP’s oil and gas portfolio to create a global energy company
• The energy giant acquired the entire share capital of BHP Petroleum (BHPP), issuing approximately 914 million new Woodside shares to BHP
• The company will also receive net cash of around US$1 billion (A$1.39 billion), including cash remaining in BHPP bank accounts immediately prior to completion
• The new Woodside shares are expected to commence trading on the ASX and the New York Stock Exchange from June 2, and on the London Stock Exchange from June 6
• Shares in Woodside last traded at $29.76 on Tuesday, May 31

Woodside Energy (WDS) has completed its acquisition of BHP’s oil and gas portfolio to create a global energy company.

Woodside, the largest energy company listed on the ASX, acquired the entire share capital of BHP Petroleum (BHPP) and issued approximately 914 million new Woodside shares to BHP.

The energy giant will also receive net cash of around US$1 billion (A$1.39 billion), including cash remaining in BHPP bank accounts immediately prior to completion.

This reflects $1.8 billion of net cash flows generated by BHPP between July 1, the effective date and completion date, less $0.8 billion which represents BHP’s entitlement to cash dividends paid by Woodside over the same period.

The new Woodside shares are expected to commence trading on the ASX and the New York Stock Exchange from June 2, and on the London Stock Exchange from June 6.

Woodside CEO Meg O’Neill said completion of the merger was one of the most significant events in the company’s 67-year history, marking “the start of a new chapter.”

“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,” she said.

“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 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.

The company said it has commenced activities to integrate the two organisations, including standardisation of reporting across all jurisdictions.

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.

“We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two businesses,” Ms O’Neill said.

Shares in Woodside last traded at $29.76 on Tuesday, May 31.