Woodside Energy
(ASX: WDS) Share Price and News
About Woodside Energy
Woodside Energy Group is an Australian-based global energy company, primarily engaged in the exploration, development, and production of oil and natural gas. Headquartered in Perth, the company operates major projects across Australia and internationally, with key assets in Western Australia’s North West Shelf and the Browse Basin.
Since 1989, Woodside has been in LNG (Liquidifed Natural Gas) and its flagship LNG project has been Pluto, which consists of oil fields off the coast of WA and an onshore processing facility near Karratha with a gross capacity of 4Mtpa and annual production over 46MMboe. It also has a minority stake in North West Shelf Project which has a capacity of 16.9Mtpa and 33MMboe LNG production.
Woodside also owns the Scarborough LNG project which will be Australia’s biggest oil and gas project for at least a decade, expected to produce 9m tonnes of LNG annually when it enters production. The oil field has proved plus probably reserves of 1,810MMboe and Woodside retains a majority stake for the time being. Specifically it owns 74.9% with 15.1% owned by Japan’s JERA following its February 2024 acquisition of that share for A$1.4bn and another 10% belongs to LNG Japan, which paid $500m in August 2023.
Woodside Energy Company History
Woodside Energy was founded in 1954 and has since grown into Australia’s largest independent oil and gas company. The company made its mark with the 1970s discovery of the North Rankin gas field, a cornerstone asset that played a significant role in Australia’s LNG industry.
Over the years, Woodside expanded through strategic mergers, acquisitions, and joint ventures, including the acquisition of Apache Corporation’s Australian assets in 2015 and the merger with BHP’s petroleum business in 2022, which significantly boosted its global scale. In more recent years, Woodside has focused on growing its LNG production and diversifying its energy solutions.
The company has been actively involved in large projects such as the Pluto LNG project and the Wheatstone LNG venture. As of now, Woodside is one of the world’s major suppliers of LNG, with a robust portfolio of upstream and downstream assets.
A key achievement of the company is acquiring and making the final investment decision on Louisiana LNG. It will deliver 16.5Mtpa LNG when fully operational, which will be over 5% of global LNG supply and roughly two thirds of the anticipated 24Mtpa that Woodside aspires to deliver from its whole portfolio.
It is estimated to deliver an IRR of 13%, a payback period of 7 years and over $2bn of annual net operating cash in the 2030s, making for over US$8bn for Woodside’s entire portfolio. It will also account for more than two thirds of Woodside’s production.
Future Outlook of Woodside Energy (ASX: WDS)
Woodside Energy’s future outlook is shaped by a variety of factors, including global energy demand, production growth, and sustainability initiatives.
Getting Louisiana LNG into production - not to mention Scarborough LNG - on-time and within budget because both aren't cheap exercises with the former costing US$17.5bn all up (even with Woodside's partner contributing a third of that).
The challenge will also be to maintain the narrative that oil and gas is still a part of the solution to decarbonisation rather the problem, in the eyes of investors but also the public - delays by regulators have been a major impediment to Scarborough.
Is WDS a Good Stock to Buy?
Woodside Energy’s stock presents a compelling case for investment, particularly for those interested in the energy sector. As a major LNG producer, the company benefits from the increasing global demand for cleaner energy, making it an attractive choice for long-term investors.
Additionally, its strong financial position, backed by a robust pipeline of projects, provides confidence in sustained growth.
The company’s expansion into new projects, such as Scarborough, positions it well for future growth. Additionally, its investments in lower-carbon technologies could enhance its appeal to investors seeking exposure to the transition to cleaner energy.
However the challenges will be to maintain capex within budget and also ensuring demand for Woodside's LNG remains strong. At current prices, Woodside Energy appears fairly valued compared to its peers in the oil and gas sector.
Our Stock Analysis
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Frequently Asked Questions
Woodside Energy offers a competitive dividend yield, typically ranging between 3% and 5%, depending on market conditions and the company's financial performance.