BHP Group expects to pay US$800m to Woodside Petroleum ((WPL)) on settlement of the Woodside-BHP Petroleum merger. Macquarie notes the demerger value has increased more than 50% for BHP Group shareholders given Woodside Petroleum’s share price strength.
While Woodside Petroleum is set to pay US$830m to BHP Group related to paid cash dividends, BHP Group is expected to make a US$1,600m payment to Woodside Petroleum for net cash flow generated in the eleven months prior to June 2022.
The Outperform rating and target price of $61.00 are retained.
Sector: Materials.
Target price is $61.00.Current Price is $51.34. Difference: $9.66 – (brackets indicate current price is over target). If BHP meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
