June 16, 2025 • 8 mins
After a shock bid pushed Santos shares up 27%, podcast host Michelle Baltazar chats with investment expert Dale Gilham on why investors may be turning their sights on the appeal of Whitehaven Coal and Woodside shares.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to the Friends with Money podcast, brought to you
by Money Magazine, creating financial freedom for Australians since nineteen
ninety nine.
Speaker 2 (00:13):
Welcome to Friends with Money. I'm your host, Michelle Baltazar.
Thanks for joining us for this bonus podcast. We're jumping
on the news that shares in oil and gas giant
Santas rose more than fifteen percent shortly after it received
a thirty billion takeover OFFHA from a group led by
Abu Dhabi's national oil company. Now, the bid valued Santas
(00:34):
that are around eight dollars eighty nine depending on the
dollar conversion rate that you use, but this is roughly
twenty seven percent plus premium to the SHARE's closing price
of six dollars ninety six on Friday. Now, the OFFHA
is still subject to due diligence and regulatory approvals before
it can go ahead. However, let me take you back
(00:56):
to November when our regular Friends with Money guest Dale Gillham,
chief investment analyst at Wealth Within Limited, did highlight Santos
as one of the three energy stocks to watch, so
we thought we'd grab him quickly for this podcast to
share his insights. Dale, thanks for joining us.
Speaker 3 (01:15):
Oh my pleasure. Thank you for inviting me back on agy. Now.
Speaker 2 (01:18):
I don't want to say oracle of Omaha, but you've
certainly somehow got the crystal ball on this.
Speaker 3 (01:25):
What are your thoughts on this deal? I get split
and can I say the word schizophrenic. Half of me
loves it. From a shareholder point of view, it's great
that you're seeing good to strained companies that are attractive
enough for overseas companies or other companies to come in
and want to buy them and taking the share price.
(01:46):
So as a shareholder, this is brilliant. It's a really
really good news. And the company's already said that they
would accept the offer, which means anybody holding Santos at
the moment has had a big jackpot day. And generally
what we talk to people about and what we teach
our students to do when the company agrees with it,
take the money and run, because you know, at the
(02:08):
end of the day, there's not much more upside from that.
If the company didn't agree with it, then I would say,
hang on to the shares for a possible raising of
the bid or maybe even another company coming in. But
that splits me to the other side. Of things being
in Australian I absolutely hate it when I see big
international companies coming in buying up our great companies and
(02:30):
then taking them off our exchange forever and the money
goes offshore. You know, from an investor point, we're losing
these assets, and especially energy assets, you know, like oil
and gas, which is pretty much what Santos is in about.
I mean, it's got gas in its portfolio, it's got
oil in its portfolio, and to me, that just shows
(02:51):
you the strength of what the energy industry is going forward.
If they're putting this sort of what is it eight
was eighteen point seven big a dollar takeover bid, It's crazy,
that's a massive, massive b It just shows you that
even though we're looking for zero, that there's still big
interest in these sort of fossil fields for the future.
(03:13):
And obviously our casts and oil that we have here
is quite valuable. So I think it all goes well
for a whole in the G sector as well.
Speaker 2 (03:21):
I can see why you're torn about this, because you
can see both sides. As an investor, who can say
no to saying yep, you've invested in the right company
because another company has or a consortium has identified the
value of that company and eight dollars eighty nine roughly
when you said back in November that the share price
(03:42):
of this company has languished around the six dollars fifty
marc for four years, so it wasn't like it was
higher before that. So now we think of it as
an investment. It is bittersweet. It happens with a lot
of successful homegrown companies. But now those who don't have
an investment in Santas and they go, my goodness, I've
(04:02):
missed the boat on this. I'm a beginner investor. You
did point out a couple of other companies to look
at back in November. One of them is white Haven Coal.
Why did you say that?
Speaker 3 (04:14):
Look, I think you know it's the old thing. If
it's unloved, then you should go and have a good
look at it, especially if it's a good company. And
I think white Haven was underbaiate and you know Woodside
was also undervated, because if you looked at both of
those companies, they'd been going down for quite some time
and also did get in a little bit. Further, I
haven't really thought that they were too cheap. You know,
(04:35):
they get something gets too expensive and also gets too cheap,
and so those were in that sort of bracket where
they were just getting too cheap, and I thought energy
had been Can I say the words on the nose
for quite some time with this whole we push over
the last few years with net zero and everybody trying
to stay away from these you know, these types of companies. Yes,
(04:59):
but as we know, there are so essentral for everyday
life still and they will be for a long period
of time. So therefore that sort of STINCHI, if I
can say that word is waned a little bit. Those
companies probably that a little bit. But all Thraism, Santas, Woodside,
and white Haven over the last few months three three
four months, they've all gone up over thirty percent, excluding
(05:19):
Santo's movement today, which is overs. I think it's a
fifteen percent last time I saw. But each of those
three companies have risen thirteen to thirty percent in the
last couple of months. And they both still look good.
So both Whitehaven and Santos still really good.
Speaker 2 (05:35):
Still look really good, even after that massive upside in
the last four months. Now, bear in mind, when you
did say this in November, that was pre the tariff
conversation pre the reversal of climate policies. But now we've
got three things that's happened. One is the certainly the
sentiment towards what do we really mean about net zero?
(05:55):
Then we also think about just transition, how do we
make sure that we carry through whether it's old school
or new school energy businesses through to the to the
next century. And then finally, like you said, it was
undervalued and you still believe that to this day, Woodside
Whitehaven coal still offer good value to anyone who's considering
(06:18):
this this sector. Bear in mind that we're not giving
any personal recommendations. Finally, they any other general observations on
the outlook for energy stocks.
Speaker 3 (06:27):
Well, you've got to look at the conflict in the
Middle East right now, you know, because that's just come
up in the last few days. Obviously it was there
that it's escalated to medical last few days, and that sadly,
it's bad for one thing, but it's good for oil.
It is really good for oil and oil stocks because
it does because the wild realizes so much on oil
(06:50):
for so many different things, and so if there or
in the Middle East, that can then jeopardize oil supplies
and therefore obviously makes it even more valuable to everybody.
So to me, it always well full in oil stocks
in general, but generally the whole I like to do
like the energy sector. There's some great sort of microcaps
(07:10):
in the energy sector that will be great over the
coming decade, but there's some really good big stocks like
you Woodsides and your White Havens that'll probably take advantage
of what's coming out at the moment in the Middle East. Dale.
Speaker 2 (07:22):
For those who are unfamiliar with Dale, he's a regular
contributor to Money Magazine. You've been looking at investments for
more than three decades, so truly truly appreciate your time
today just to give us some context on what's happening
in the market. Thank you for joining.
Speaker 3 (07:36):
Us my pleasure, Michelle, thank you.
Speaker 2 (07:38):
For listening to this bonus episode. Until next I'm Michelle Baltasar.
Bye for now.
Speaker 1 (07:44):
Thanks for listening to the Friends with Money podcast. For credible,
independent and easy to understand financial commentary, visit moneymag dot
com dot au. Please remember that the views and opinions
expressed in this podcast are general in nature, and independent
advice and research based on your personal circumstances should be
(08:04):
sought before making an investment decision.
Welcome to the Friends with Money podcast, brought to you
by Money Magazine, creating financial freedom for Australians since nineteen
ninety nine.
Speaker 2 (00:13):
Welcome to Friends with Money. I'm your host, Michelle Baltazar.
Thanks for joining us for this bonus podcast. We're jumping
on the news that shares in oil and gas giant
Santas rose more than fifteen percent shortly after it received
a thirty billion takeover OFFHA from a group led by
Abu Dhabi's national oil company. Now, the bid valued Santas
(00:34):
that are around eight dollars eighty nine depending on the
dollar conversion rate that you use, but this is roughly
twenty seven percent plus premium to the SHARE's closing price
of six dollars ninety six on Friday. Now, the OFFHA
is still subject to due diligence and regulatory approvals before
it can go ahead. However, let me take you back
(00:56):
to November when our regular Friends with Money guest Dale Gillham,
chief investment analyst at Wealth Within Limited, did highlight Santos
as one of the three energy stocks to watch, so
we thought we'd grab him quickly for this podcast to
share his insights. Dale, thanks for joining us.
Speaker 3 (01:15):
Oh my pleasure. Thank you for inviting me back on agy. Now.
Speaker 2 (01:18):
I don't want to say oracle of Omaha, but you've
certainly somehow got the crystal ball on this.
Speaker 3 (01:25):
What are your thoughts on this deal? I get split
and can I say the word schizophrenic. Half of me
loves it. From a shareholder point of view, it's great
that you're seeing good to strained companies that are attractive
enough for overseas companies or other companies to come in
and want to buy them and taking the share price.
(01:46):
So as a shareholder, this is brilliant. It's a really
really good news. And the company's already said that they
would accept the offer, which means anybody holding Santos at
the moment has had a big jackpot day. And generally
what we talk to people about and what we teach
our students to do when the company agrees with it,
take the money and run, because you know, at the
(02:08):
end of the day, there's not much more upside from that.
If the company didn't agree with it, then I would say,
hang on to the shares for a possible raising of
the bid or maybe even another company coming in. But
that splits me to the other side. Of things being
in Australian I absolutely hate it when I see big
international companies coming in buying up our great companies and
(02:30):
then taking them off our exchange forever and the money
goes offshore. You know, from an investor point, we're losing
these assets, and especially energy assets, you know, like oil
and gas, which is pretty much what Santos is in about.
I mean, it's got gas in its portfolio, it's got
oil in its portfolio, and to me, that just shows
(02:51):
you the strength of what the energy industry is going forward.
If they're putting this sort of what is it eight
was eighteen point seven big a dollar takeover bid, It's crazy,
that's a massive, massive b It just shows you that
even though we're looking for zero, that there's still big
interest in these sort of fossil fields for the future.
(03:13):
And obviously our casts and oil that we have here
is quite valuable. So I think it all goes well
for a whole in the G sector as well.
Speaker 2 (03:21):
I can see why you're torn about this, because you
can see both sides. As an investor, who can say
no to saying yep, you've invested in the right company
because another company has or a consortium has identified the
value of that company and eight dollars eighty nine roughly
when you said back in November that the share price
(03:42):
of this company has languished around the six dollars fifty
marc for four years, so it wasn't like it was
higher before that. So now we think of it as
an investment. It is bittersweet. It happens with a lot
of successful homegrown companies. But now those who don't have
an investment in Santas and they go, my goodness, I've
(04:02):
missed the boat on this. I'm a beginner investor. You
did point out a couple of other companies to look
at back in November. One of them is white Haven Coal.
Why did you say that?
Speaker 3 (04:14):
Look, I think you know it's the old thing. If
it's unloved, then you should go and have a good
look at it, especially if it's a good company. And
I think white Haven was underbaiate and you know Woodside
was also undervated, because if you looked at both of
those companies, they'd been going down for quite some time
and also did get in a little bit. Further, I
haven't really thought that they were too cheap. You know,
(04:35):
they get something gets too expensive and also gets too cheap,
and so those were in that sort of bracket where
they were just getting too cheap, and I thought energy
had been Can I say the words on the nose
for quite some time with this whole we push over
the last few years with net zero and everybody trying
to stay away from these you know, these types of companies. Yes,
(04:59):
but as we know, there are so essentral for everyday
life still and they will be for a long period
of time. So therefore that sort of STINCHI, if I
can say that word is waned a little bit. Those
companies probably that a little bit. But all Thraism, Santas, Woodside,
and white Haven over the last few months three three
four months, they've all gone up over thirty percent, excluding
(05:19):
Santo's movement today, which is overs. I think it's a
fifteen percent last time I saw. But each of those
three companies have risen thirteen to thirty percent in the
last couple of months. And they both still look good.
So both Whitehaven and Santos still really good.
Speaker 2 (05:35):
Still look really good, even after that massive upside in
the last four months. Now, bear in mind, when you
did say this in November, that was pre the tariff
conversation pre the reversal of climate policies. But now we've
got three things that's happened. One is the certainly the
sentiment towards what do we really mean about net zero?
(05:55):
Then we also think about just transition, how do we
make sure that we carry through whether it's old school
or new school energy businesses through to the to the
next century. And then finally, like you said, it was
undervalued and you still believe that to this day, Woodside
Whitehaven coal still offer good value to anyone who's considering
(06:18):
this this sector. Bear in mind that we're not giving
any personal recommendations. Finally, they any other general observations on
the outlook for energy stocks.
Speaker 3 (06:27):
Well, you've got to look at the conflict in the
Middle East right now, you know, because that's just come
up in the last few days. Obviously it was there
that it's escalated to medical last few days, and that sadly,
it's bad for one thing, but it's good for oil.
It is really good for oil and oil stocks because
it does because the wild realizes so much on oil
(06:50):
for so many different things, and so if there or
in the Middle East, that can then jeopardize oil supplies
and therefore obviously makes it even more valuable to everybody.
So to me, it always well full in oil stocks
in general, but generally the whole I like to do
like the energy sector. There's some great sort of microcaps
(07:10):
in the energy sector that will be great over the
coming decade, but there's some really good big stocks like
you Woodsides and your White Havens that'll probably take advantage
of what's coming out at the moment in the Middle East. Dale.
Speaker 2 (07:22):
For those who are unfamiliar with Dale, he's a regular
contributor to Money Magazine. You've been looking at investments for
more than three decades, so truly truly appreciate your time
today just to give us some context on what's happening
in the market. Thank you for joining.
Speaker 3 (07:36):
Us my pleasure, Michelle, thank you.
Speaker 2 (07:38):
For listening to this bonus episode. Until next I'm Michelle Baltasar.
Bye for now.
Speaker 1 (07:44):
Thanks for listening to the Friends with Money podcast. For credible,
independent and easy to understand financial commentary, visit moneymag dot
com dot au. Please remember that the views and opinions
expressed in this podcast are general in nature, and independent
advice and research based on your personal circumstances should be
(08:04):
sought before making an investment decision.
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