Offshore staff
PERTH, Australia — Woodside Energy Group Ltd. and BHP Group Ltd. have completed the previously announced 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 $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 July 1, 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.
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 Australian Securities Exchange 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, the company said.
Woodside has commenced activities to integrate the two organizations, including standardization of reporting across all jurisdictions. The updated production guidance, reserves position and other related information will be released in due course.
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.
“We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two businesses," O’Neill said.
05.31.2022
