BHP spins off oil business

Article Excerpt

BHP GROUP LTD. (ADR) $56 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.5 billion; Market cap: $140.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 12.5%; TSINetwork Rating: Average; www.bhp.com) is a leading producer of iron ore (supplying about 75% of earnings),as well as copper, nickel and coal. On June 1, 2022, BHP merged its oil and gas operations with Australian oil producer Woodside Energy Group Ltd. (New York symbol WDS). Under the terms of the transaction, Woodside issued new shares to BHP shareholders as a special dividend worth roughly $7.72 per ADR (each American Depositary Receipt represents two BHP common shares). As a group, BHP investors now own 48% of the combined company. Following the deal, Woodside is one of the world’s top 10 independent oil and gas companies by production, with major projects in Western Australia, the Gulf of Mexico, and Trinidad. It expects the merger will eventually let it cut $400 million from its annual costs. We’ll…

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