Why the Woodside (ASX:WPL) share price is down 11% in a week

In case you missed it, here's what went down with Woodside (and its share price) this week.

The Woodside Petroleum Limited (ASX: WPL) share price has fallen 11.2% over the last week on the back of some controversial news.

Woodside's stock finished last week at $22.19. However, when the market closed on Friday this week, Woodside shares were worth $19.70 each.

Let's take a look at the oil and gas producer's turbulent week on the ASX.

asx share investor lookly sadly at barrel of oil leaking on floor

Image source: Getty Images

The week that was for Woodside

The week started off red for the Woodside share price.

On Monday, both Woodside and BHP Group Ltd (ASX: BHP) confirmed they were in discussions regarding Woodside potentially taking on BHP's oil and gas business.

While it was all just rumours and chatting back then, the Woodside share price fell 4.55% in anticipation of things to come.

Then, on Tuesday, reports emerged that key Woodside shareholders were against the idea. Though, that debate didn't last long.

After the market closed on Tuesday, Woodside announced it will, indeed, be merging with BHP's oil and gas segment.

After the proposed merger, the newly expanded Woodside will be 52% owned by Woodside shareholders, and 48% by BHP shareholders. The two companies spoke of a merged entity with stronger cash flows, more resilience, and more than US$400 million of annual synergies.

Then, on Wednesday morning, Woodside released its results for the 6 months ended 30 June 2021.

If Woodside had counted on news of its $317 million profit, US30 cents dividend, and newly appointed CEO outweighing the oil-covered elephant in the room, its hopes were soon dashed.

The market sent the Woodside share price sliding 2.12% on Wednesday.

That wasn't the end of the bad week though. Woodside shares slumped another 3.4% on Thursday and didn't manage to correct themselves much on Friday.

Woodside share price snapshot

The bad week has dragged the Woodside share price deeper into the red this year.

Currently, its 15% lower than it was at the start of 2021. It has also dropped 2.4% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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