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Woodside Energy Group Ltd (AU:WDS)
:WDS

Woodside Energy Group (WDS) AI Stock Analysis

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AU

Woodside Energy Group

(Sydney:WDS)

Rating:71Outperform
Price Target:
AU$28.00
▲(16.67%Upside)
Woodside Energy Group has a strong overall financial performance with robust profitability margins and a stable balance sheet, though it faces cash flow challenges. The stock appears undervalued based on its low P/E ratio and high dividend yield. Technical analysis suggests a bullish trend, but potential overbought conditions warrant caution.
Positive Factors
Financial Performance
Woodside reported a strong FY24 result with underlying EBITDA of $9.28bn, in-line with consensus.
Growth Prospects
A pipeline of organic growth projects is expected to drive 5% CAGR in production from 2024-2027.
Market Positioning
High European gas prices are attracting liquified natural gas away from Asia, potentially tightening the Asian market and supporting higher spot prices, which is beneficial for Woodside's LNG sales.
Negative Factors
Earnings Outlook
Depreciation and amortization rate for 2024 is higher than estimates, which has led to a reduction in the 2024 earnings per share and dividends per share forecasts by 6%.
Market Supply Dynamics
OPEC plans to increase market supply in 2025, which could impact oil prices and affect Woodside Energy Group Ltd.
Regulatory Challenges
Federal approval remains pending for the North West Shelf Project life extension to 2070, which impacts the commercial viability of the Browse project.

Woodside Energy Group (WDS) vs. iShares MSCI Australia ETF (EWA)

Woodside Energy Group Business Overview & Revenue Model

Company DescriptionWoodside Energy Group Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in Oceania, Asia, Canada, Africa, and internationally. The company produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas, and crude oil. It holds interests in the Greater Browse, Greater Sunrise, Greater Pluto, Greater Exmouth, North West Shelf, Wheatstone, Julimar-Brunello, Canada, Senegal, Greater Scarborough, and Myanmar projects. The company was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022. Woodside Energy Group Ltd was founded in 1954 and is headquartered in Perth, Australia.
How the Company Makes MoneyWoodside Energy Group generates revenue through the exploration, production, and sale of hydrocarbon products, with LNG being a significant contributor to its income. The company derives its earnings from selling LNG, crude oil, and natural gas to various international and domestic markets. Key revenue streams include long-term supply contracts with major Asian markets, spot sales, and collaboration with industry partners in joint ventures and partnerships. Significant factors contributing to its earnings include its robust asset portfolio, efficient production operations, and strategic investments in technology and infrastructure to optimize production and reduce costs.

Woodside Energy Group Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q4-2024)
|
% Change Since: 21.77%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in production, financial performance, and strategic growth, particularly in LNG projects and climate commitments. However, it also acknowledges challenges such as safety incidents, regulatory delays, and underperformance in certain assets. Despite these challenges, the positive aspects of strategic positioning and financial outcomes suggest a generally favorable outlook.
Q4-2024 Updates
Positive Updates
Record Annual Production
Woodside achieved record annual production in 2024 with 194 million barrels of oil equivalent, reaching the top end of the full-year guidance range.
Strong Financial Performance
The company reported a net profit after tax of $3.6 billion, a significant increase from 2023, and earnings per share of US 189 cents.
Climate Commitments Achieved
Woodside reduced net equity Scope 1 and 2 emissions by 14% below their starting base in 2024, aligning with their climate targets.
Strategic Growth and Acquisitions
Woodside expanded its portfolio with significant acquisitions including Tellurian and the Louisiana LNG development, positioning it as a global LNG powerhouse.
Dividend Distribution
A fully franked total full-year dividend of US 122 cents per share was declared, at the top of the payout range.
Successful Project Milestones
Achievements include 80% completion of the Scarborough project, successful installation of the Pluto Train 2 modules, and the first cargo supply to Senegal's domestic refinery.
Negative Updates
Tragic Incident at Beaumont New Ammonia
In October 2024, a construction contractor employee tragically died, highlighting the need for improved safety measures.
Challenges in Regulatory Approvals
Delays in federal approval for the Northwest Shelf life extension have caused frustration and uncertainty for future investments.
Underperformance of U.S. Gulf Assets
Woodside faced disappointing performance and reserve cuts at U.S. Gulf projects such as Shenzi and Mad Dog.
Impact of Urea Pricing on Dividends
The volatility in urea pricing impacted dividend payout, causing market concerns about Woodside's balance sheet resilience.
Company Guidance
In the 2024 full-year results call, Woodside Energy Group Limited reported a record annual production of 194 million barrels of oil equivalent, achieving the top end of their guidance range. The company saw a net profit after tax of $3.6 billion, a significant increase from 2023, with earnings per share at U.S. 189 cents. Woodside declared a fully franked total dividend of U.S. 122 cents per share, also at the top of their payout range. They reduced unit production costs to $8.10 per barrel of oil equivalent and decreased net equity Scope 1 and 2 emissions by 14% from their starting base. The company anticipates a 4% to 5% compound annual growth rate in portfolio sales from 2024 to 2030. They also announced significant progress on major projects, including Sangomar, Scarborough, and Trion, and highlighted strategic acquisitions like Beaumont New Ammonia and Louisiana LNG. Woodside's capital management strategy remains focused on maintaining an investment-grade credit rating with a target gearing range of 10% to 20%.

Woodside Energy Group Financial Statement Overview

Summary
Woodside Energy Group demonstrates strong profitability margins amidst fluctuating revenue. The balance sheet reflects financial stability with a strong equity position and moderate leverage. However, cash flow analysis points to potential liquidity challenges, despite efficient income-to-cash conversion.
Income Statement
70
Positive
Woodside Energy Group's income statement reveals a volatile revenue trend with a recent decline from $13.99 billion in 2023 to $13.18 billion in 2024. Gross profit margin decreased to 43.1% in 2024, and net income is relatively strong at $3.57 billion. The EBIT margin is not available for 2024, but the EBITDA margin remains robust at 71.8%. Despite revenue fluctuations, profitability margins indicate operational efficiency.
Balance Sheet
75
Positive
The balance sheet shows a solid equity base with a stockholders' equity of $35.4 billion in 2024, giving an equity ratio of 57.8%. The debt-to-equity ratio is moderate at 0.33, suggesting manageable leverage levels. Return on equity is 10.1%, indicating decent returns on shareholder investments. Overall, the company's financial position appears stable with balanced leverage.
Cash Flow
65
Positive
Cash flow analysis highlights a decline in operating cash flow to $5.85 billion in 2024. Free cash flow increased slightly to $0.945 billion, though it remains low relative to net income, indicating potential cash constraints. The operating cash flow to net income ratio of 1.64 suggests efficient conversion of income to cash, but free cash flow growth remains a concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.18B13.99B16.82B6.96B3.60B
Gross Profit5.68B6.47B10.28B3.12B615.00M
EBITDA9.47B8.70B10.41B4.12B-3.32B
Net Income3.57B1.66B6.50B1.98B-4.03B
Balance Sheet
Total Assets61.26B55.36B59.32B26.47B24.62B
Cash, Cash Equivalents and Short-Term Investments4.11B1.95B6.88B3.35B3.78B
Total Debt11.62B6.50B6.45B6.61B7.40B
Total Liabilities25.11B20.19B22.19B12.24B11.75B
Stockholders Equity35.40B34.40B36.34B13.44B12.07B
Cash Flow
Free Cash Flow945.00M854.00M5.67B1.17B-96.00M
Operating Cash Flow5.85B6.14B8.81B3.79B1.85B
Investing Cash Flow-5.75B-5.58B-2.27B-2.94B-2.11B
Financing Cash Flow2.10B-5.00B-3.36B-1.42B-203.00M

Woodside Energy Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.00
Price Trends
50DMA
22.46
Positive
100DMA
22.44
Positive
200DMA
23.14
Positive
Market Momentum
MACD
0.36
Positive
RSI
53.81
Neutral
STOCH
17.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WDS, the sentiment is Positive. The current price of 24 is below the 20-day moving average (MA) of 24.32, above the 50-day MA of 22.46, and above the 200-day MA of 23.14, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 17.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WDS.

Woodside Energy Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWDS
71
Outperform
AU$45.18B8.3410.07%7.12%0.71%120.95%
44
Neutral
AU$1.38B-6.76-23.02%6.69%5.33%-26.92%
$2.00B32.642.70%4.26%
$925.53M9.1513.49%4.26%
$16.36B13.317.94%4.12%
AUSTX
45
Neutral
AU$415.70M57.35-4.01%801.92%-985.71%
AUTBN
35
Underperform
AU$375.70M-10.88%56.73%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WDS
Woodside Energy Group
24.00
-3.17
-11.67%
BEPTF
Beach Energy
0.88
-0.05
-5.38%
KRNGF
Karoon Energy Ltd
1.47
0.28
23.53%
STOSF
Santos Limited
5.03
0.11
2.24%
AU:STX
Strike Energy Limited
0.14
-0.09
-39.13%
AU:TBN
Tamboran Resources Limited
0.16
-0.02
-11.11%

Woodside Energy Group Corporate Events

Woodside Completes Strategic Sell-Down of Louisiana LNG Stake to Stonepeak
Jun 24, 2025

Woodside Energy Group has completed the sell-down of a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak, a global investment firm. This transaction, which involves Stonepeak contributing $5.7 billion towards the project’s capital expenditure, is expected to enhance the economics of the Louisiana LNG project and strengthen Woodside’s capacity for shareholder returns. The partnership with Stonepeak marks a significant milestone for Woodside, as it prepares for the first cargo from the Scarborough Energy Project in 2026. The deal underscores the strategic importance of Louisiana LNG in the growing global demand for cleaner energy solutions.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$23.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Secures Approval for North West Shelf Project Extension
May 28, 2025

Woodside Energy Group has welcomed the Federal Government’s proposed environmental approval for the North West Shelf Project Extension, a move that ensures the continuation of this critical infrastructure. The project, which has contributed over A$40 billion in royalties and taxes since 1984, supports thousands of jobs and has been pivotal in supplying energy to Western Australia and international customers. The proposed conditions include cultural heritage management and air quality measures, with Woodside committed to reducing emissions and engaging with Traditional Owners to protect cultural landscapes.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Issues Unquoted Securities to Boost Employee Incentives
May 21, 2025

Woodside Energy Group Ltd announced the issuance of unquoted securities under an employee incentive scheme, which are not intended to be listed on the ASX. This move indicates the company’s ongoing efforts to incentivize its workforce, potentially enhancing employee engagement and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Announces Director’s Interest Change
May 21, 2025

Woodside Energy Group has announced a change in the director’s interest, specifically regarding Marguerite (Meg) Eileen O’Neill. The notice details the acquisition of 177,117 Restricted Shares and 106,271 Rights under the Executive Incentive Scheme, while 21,087 ordinary shares were disposed of. This change reflects adjustments in the director’s holdings, which could have implications for the company’s governance and shareholder interests.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Secures $3.5 Billion in US Bond Offering
May 14, 2025

Woodside Energy Group Ltd has successfully priced a US$3.5 billion bond offering in the US market through its subsidiary, Woodside Finance Limited. The bonds, which are guaranteed by the parent company, will be used for general corporate purposes, potentially enhancing the company’s financial flexibility and operational capabilities.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Group Secures Shareholder Approval for Key Resolutions at 2025 AGM
May 8, 2025

Woodside Energy Group Ltd announced the results of its 2025 Annual General Meeting, where all proposed resolutions were successfully passed. Key decisions included the re-election of directors Ann Pickard and Ben Wyatt, the election of Tony O’Neill as a director, approval of the remuneration report, and the grant of executive incentive scheme awards to the CEO and Managing Director. The overwhelming support for these resolutions reflects strong shareholder confidence in the company’s leadership and strategic direction.

Woodside Energy Group Releases Forward-Looking Business Announcement
May 8, 2025

Woodside Energy Group has released an announcement approved by its Disclosure Committee, which includes forward-looking statements regarding its business operations and market conditions. These statements reflect the company’s aspirations and are subject to various risks and uncertainties, emphasizing the need for stakeholders to consider these factors when evaluating the company’s future performance.

Woodside Energy Advances with Major Louisiana LNG Project
May 2, 2025

Woodside Energy Group has approved the final investment decision for the Louisiana LNG development, a transformative project expected to position the company as a global LNG powerhouse. The project involves a three-train foundation development with a capacity of 16.5 million tonnes per annum, with potential expansion to 27.6 million tonnes. This strategic investment is set to enhance Woodside’s cash generation potential and shareholder value, leveraging abundant US gas resources and strategic partnerships to meet long-term LNG demand in Asia and Europe.

Woodside Energy Approves Major Louisiana LNG Development
Apr 30, 2025

Woodside Energy Group has approved the final investment decision for the Louisiana LNG development, a transformative project expected to position the company as a global LNG powerhouse. The development includes a three-train foundation with a capacity of 16.5 million tonnes per annum, with potential expansion to 27.6 million tonnes. This project leverages abundant US gas resources and strategic partnerships to enhance Woodside’s portfolio, promising significant cash generation and shareholder value. The project is expected to generate $2 billion in net operating cash annually, with a total cost estimate of $17.5 billion, and is set to commence LNG production by 2029.

Woodside Secures Gas Supply Agreement with bp for Louisiana LNG Project
Apr 30, 2025

Woodside Energy Group has entered into a gas supply agreement with bp to support its Louisiana LNG project, marking a significant milestone for the venture. This agreement is expected to enhance the project’s cash generation and shareholder value, leveraging bp’s expertise in low methane intensity gas to align with Woodside’s environmental goals.

Woodside Energy Approves Major LNG Project in Louisiana
Apr 29, 2025

Woodside Energy Group has approved the development of a major LNG project in Louisiana, which is expected to significantly enhance its global LNG portfolio. The project, with a capacity of 16.5 million tonnes per annum, is set to commence in 2029 and will position Woodside to supply over 5% of the global LNG market. This development is anticipated to generate substantial cash flow and long-term value for shareholders, with an internal rate of return above 13% and a payback period of seven years. The project will also support approximately 15,000 jobs during construction and represents the largest single foreign direct investment in Louisiana’s history.

Woodside Energy Reports Strong Q1 2025 Performance and Strategic Progress
Apr 22, 2025

In its first-quarter report for 2025, Woodside Energy Group highlighted robust operational performance and strategic advancements in its major projects. Despite a slight dip in production and revenue compared to the previous quarter, the company saw a year-on-year increase due to the Sangomar project’s contributions. Woodside is progressing well on significant projects like the Beaumont New Ammonia Project and the Scarborough Energy Project, both on track for completion within their respective timelines. The company is also streamlining its portfolio by divesting non-core assets and securing long-term LNG supply agreements, positioning itself as a global LNG leader. The recent agreements and project milestones are expected to enhance shareholder value and strengthen Woodside’s market position.

Woodside Energy Issues New Equity Securities
Apr 14, 2025

Woodside Energy Group Ltd announced the issuance and conversion of unquoted equity securities, specifically ordinary fully paid shares. This move involves the issuance of 14,676 shares on March 5, 2025, and 7,658 shares on March 3, 2025. The announcement signifies a strategic financial maneuver that could impact the company’s capital structure and shareholder value.

Woodside Energy Issues Unquoted Securities to Boost Employee Incentives
Apr 14, 2025

Woodside Energy Group Ltd announced the issuance of 134,967 unquoted securities under an employee incentive scheme. This move is part of the company’s strategy to enhance employee engagement and align their interests with the company’s long-term goals, potentially impacting its operational efficiency and stakeholder relations positively.

Woodside Energy Group Strengthens Sustainability Strategy Amid Growing Energy Demand
Apr 7, 2025

Woodside Energy Group has emphasized its commitment to sustainability as a core aspect of its business strategy, highlighting the integration of climate considerations into its governance and executive remuneration. The company aims to balance ambition with discipline in its climate strategy, responding to investor feedback and enhancing transparency in sustainability reporting to build trust and meet evolving standards, thereby securing new business opportunities and managing risks effectively.

Woodside Partners with Stonepeak for Louisiana LNG Project
Apr 7, 2025

Woodside Energy Group has entered into a partnership with Stonepeak, selling a 40% interest in Louisiana LNG Infrastructure LLC. This agreement reduces Woodside’s capital expenditure and accelerates the project’s development, with Stonepeak contributing $5.7 billion towards the capital expenditure. This partnership enhances the project’s economics and strengthens Woodside’s capacity for shareholder returns, positioning the Louisiana LNG project as a globally attractive investment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025