Big Couple of Weeks for WDS

So many factors in play at the moment when it comes to WDS. Certainly the most interesting stock to follow in my portfolio.

Politics/ESG

The change of government has brought out the climate change zealots again. It was only 6 months ago the Glasgow summit saw WDS beaten down to $21. It’s a sentiment thing. The UK windfall tax was a worry - a good thing Albanese has hosed down any immediate fears of such a tax being introduced here.

Despite the doubters on this thread, maybe Megs demonstrated willingness to embrace the transition to renewables has been her best and smartest move so far. The name change, the initial investments into hydrogen and the rhetoric presented in the media and on the website may just have saved the whole sector from a dirty great super tax (the government obviously well aware that WDS is the oil and gas sector here now that it has taken on the BHPP assets)

BHP shareholders

Still much uncertainty about the extent (and timing) of the dump. Surely big funds would stagger their sales over 6 or 12 months. How much ‘hanging back’ has been going on whereby willing WDS buyers are anticipating picking up WDS cheaper when the ‘dump’ happens ? Has been a bit of a handbrake on the share price recently I think. It may be that the buyers are lined up to such an extent that they gobble up any shares that hit the market and the much anticipated drop never happens.

US listing

Varying views on this. Some think it will help re-rate the ASX listed stock upwards significantly.....others think it will barely move the needle.

China & Ukraine/Russia

Sudden developments could move the oil price suddenly either way and with it the WDS sp.

Putting all the above uncertainties to one side, the price of oil remains stubbornly above $100 meaning record half year profits, cash flows and dividends are now almost a certainty for WDS. It looks under priced to me at $30.14 when you consider what is going to be presented to the market in mid August when half year results are released.

Oil prices up again overnight and oil and gas stocks well in favour on Wall St - augurs well for WDS on Monday.....that recent dip below $29 is starting to look like a missed opportunity.

One last thing I might just throw out there.....ex CEO Peter Coleman is a bit of a forgotten man these days. I was thinking about this in the context of Albo’s nod and a wink that he wouldn’t impose a super tax here in Australia. Does anyone see the striking resemblance - I’m not convinced they aren’t the same person. I mean has anyone actually seen them both in the same room together ?