scroll

BHP & WDS

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 02/07/2022

BHP & WDS

Hi James, A different question BHP & WDS have recently exchanged some large assets and BHP has paid out large amounts of cash to its shareholders . My question is what is the best way from an analyst perspective to compare historical information with the current entities under their new asset structure. Most importantly its current share price. For example is the current price of BHP of $42 similar to $50 when it held its oil assets. What is their expected trading range with the new asset structure? Regards Michael

Answer

HI Michael,

There was actually no cash paid out to shareholders, it was a dividend paid in WDS shares as BHP sold them their petroleum business. To understand the value of this, we simply add the value of our WDS shares distributed to the value of the BHP shares. So, for every 5.534 BHP shares held, we got 1 WDS share plus franking. So, the ‘dividend’ which is paid in WDS shares was worth $5.38 plus franking = $7.68 per BHP share. Essentially, we add that value to our BHP holding to get the true level of BHP. In terms of expected trading range, ~$38-$48 would be our suggested levels.

chart

BHP Group (BHP)

LAST UPDATED 01/07/2022 14:19

Latest Reports

Afternoon report 17/02/2025

The Match Out: ASX dips as Bendigo (BEN) & Westpac (WBC) lead the banks lower

While the ASX closed in the red, it was a big turnaround from early weakness with a large sell-off in the banks, headlined by Bendigo (BEN) & supported by Westpac (WBC) weighing on the market early, however, from 1pm onwards the buyers stepped up pushing the main board more than +60 points above the session lows as reporting season continues to deliver a mixed bag, with a positive bias.

Morning report 17/02/2025

Macro Monday: Step up the RBA – we hope!

It's no secret that the RBA is expected to cut rates this week, with the futures market calling it an “87% probability.” However, the accompanying rhetoric is likely to drive local stocks in the coming weeks, especially with the market looking for two additional cuts into Christmas, taking the Cash Rate to 3.6%. Local rates have sat at a restrictive 4.35% since November 2023, and we think three cuts are likely to prove too dovish; Michele Bullock's comments on Tuesday will be a classic case of the devil being in the detail.