Woodside Petroleum's shareholders on May 19 voted for a merger with BHP Group's petroleum arm to create a top 10 global independent oil and gas producer worth $40 billion, according to a vote count at the company's annual meeting.
Of the total final votes, 98.66% were in favor of the deal.
The merger, agreed last August, advances top global miner BHP's effort to move away from fossil fuels as it looks to decarbonize while doubling Woodside's oil and gas production and beefing up its funding for growth.
"The merger is an opportunity for Woodside to increase its contribution to the world's growing energy needs and build the scale, resilience and diversity to thrive through the energy transition," CEO Meg O'Neill told shareholders.
BHP will be paid in Woodside shares, giving BHP investors a 48% stake in the merged group, which will have assets in Australia, the U.S., Mexico, Senegal and Trinidad.
While backing the merger, shareholders were disappointed with Woodside's climate plan, which does not set targets for reducing its customers' Scope 3 emissions.
Nearly 49% of the votes were against the climate plan, which Woodside put to an advisory vote for the first time.
Two proxy advisers recommended voting against the plan.
Woodside chairman Richard Goyder ordered the microphone to be cut off after one proxy for a shareholder asked whether the company's plans to invest in fossil fuels were "morally mad, economically mad or both," to which the chairman replied, "Or neither."
However, Goyder said the company clearly needs to engage more with shareholders to explain that its plans are in line with Paris Agreement goals.
O'Neill said Woodside's strategy on Scope 3 is to come up with clean products, such as hydrogen, for its customers.
Recommended Reading
Utica Oil E&P Infinity Natural Resources Latest to File for IPO
2024-10-05 - Utica Shale E&P Infinity Natural Resources has not yet set a price or disclosed the number of shares it intends to offer.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Sheffield: E&Ps’ Capital Starvation Not All Bad, But M&A Needs Work
2024-10-04 - Bryan Sheffield, managing partner of Formentera Partners and founder of Parsley Energy, discussed E&P capital, M&A barriers and how longer laterals could spur a “growth mode” at Hart Energy’s Energy Capital Conference.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
Investor Returns Keep Aethon IPO-ready
2024-10-08 - Haynesville producer Aethon Energy is focused on investor returns, additional bolt-on acquisitions and mainly staying “IPO ready,” the company’s Senior Vice President of Finance said Oct. 3 at Hart Energy’s Energy Capital Conference (ECC) in Dallas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.