Ann: Merger update and details of Woodside share distribution, page-65

Just got this in an email ...Tue, 12 Apr at 9:36 am

Tuesday, 12 April 2022

BHP - BHP GROUP LIMITED

Macquarie rates BHP as Outperform (1) - 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.

Target price is $61.00 Current Price is $51.68 Difference: $9.32 If BHP meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges). Current consensus price target is $49.56, suggesting downside of -4.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 507.31 cents and EPS of 625.54 cents . At the last closing share price the estimated dividend yield is 9.82%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.26. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 581.0, implying annual growth of N/A. Current consensus DPS estimate is 441.5, implying a prospective dividend yield of 8.5%. Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 359.85 cents and EPS of 466.59 cents . At the last closing share price the estimated dividend yield is 6.96%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.08. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 493.4, implying annual growth of -15.1%. Current consensus DPS estimate is 347.4, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 10.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.4All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources