Merger with BHP Petroleum
We are positively inclined on the idea of combining assets. With hydrocarbons having no future, ensuring the maximal efficiency in the stewardship and management of the assets, as we transition towards renewables, makes perfect sense, in order to maximise shareholder value in the interim.
That means agglomerating, consolidating, merging, prioritising, and many other synonyms.
However, despite listening in to the conference call at 6pm, it remains somewhat unclear just exactly how much the assets are being effectively acquired for. The price matters, and although we enjoyed the presentation, that detail, alongside other important details (such as the implication for Scarborough’s funding status and WPL’s obligations if FID is taken before shareholders vote on the merger, whom subsequently reject such a merger) remain unclear.
So, we will await WPL’s results discussion tomorrow before penning more thoughts.
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