Woodside – Algo Buy

Woodside Petroleum is under Algo Engine buy conditions and is a current holding in our ASX 100 model.

Woodside is expected to issue almost 1 billion new shares to pay for the acquisition of BHP’s petroleum business under the $41bn merger deal. BHP shareholders will receive shares in WPL and we may see some overhang of selling for the market to absorb, however, we view the deal as a vote of confidence in the new merged entity, given BHP’s decision to merge their energy assets rather than pursue a cash deal.

  • Woodside will acquire BHP’s oil and gas business in a proposed $41 billion merger deal
  • Analysts tip the deal will pave the way for Woodside’s $US12 billion Scarborough project
  • The merger will relieve pressure on Woodside whose existing assets are depleting

Woodside – Accumulate

WPL:ASX is under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

WPL has agreed to an all-scrip acquisition (merger) of BHP Petroleum’s
assets.

Underlying profit for the six months to June rose 17% to $US354 million, falling short of estimates.

Accumulate.

Woodside – Accumulate

WPL:ASX is under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

WPL has agreed to an all-scrip acquisition (merger) of BHP Petroleum’s
assets.

Underlying profit for the six months to June rose 17% to $US354 million, falling short of estimates.

Accumulate.