tiprankstipranks
Trending News
More News >
Woodside Energy Group Ltd (AU:WDS)
ASX:WDS

Woodside Energy Group (WDS) AI Stock Analysis

Compare
759 Followers

Top Page

AU

Woodside Energy Group

(Sydney:WDS)

Rating:74Outperform
Price Target:
AU$25.00
â–²(8.98%Upside)
The stock's overall score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which are significant positives. Financial performance is solid, with strong profitability, though cash flow challenges are a concern. Technical analysis suggests bullish momentum but advises caution due to longer-term moving averages.
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 Conditions
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 Forecast
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%.
Oil Market Dynamics
OPEC plans to increase market supply in 2025, which could impact oil prices and affect Woodside Energy Group Ltd.
Regulatory Approval
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 (WDS) is a prominent Australian oil and gas company engaged in the exploration, development, production, and marketing of hydrocarbon products. The company operates across several sectors, primarily focusing on liquefied natural gas (LNG), crude oil, and natural gas production. Woodside is known for its significant offshore and onshore facilities in Australia and its strategic international projects, positioning itself as a key player in the global energy industry.
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: 16.39%|
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.88B13.18B13.99B16.82B6.96B3.60B
Gross Profit
7.14B5.68B6.47B10.28B3.12B615.00M
EBIT
3.45B0.005.74B8.34B3.33B102.00M
EBITDA
10.05B9.47B8.70B10.41B4.12B-3.32B
Net Income Common Stockholders
1.82B3.57B1.66B6.50B1.98B-4.03B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.95B4.11B1.95B6.88B3.35B3.78B
Total Assets
55.36B61.26B55.36B59.32B26.47B24.62B
Total Debt
6.20B11.62B6.50B6.45B6.61B7.40B
Net Debt
4.46B7.70B4.76B247.00M3.58B3.79B
Total Liabilities
20.19B25.11B20.19B22.19B12.24B11.75B
Stockholders Equity
34.40B35.40B34.40B36.34B13.44B12.07B
Cash FlowFree Cash Flow
545.00M945.00M854.00M5.67B1.17B-96.00M
Operating Cash Flow
7.21B5.85B6.14B8.81B3.79B1.85B
Investing Cash Flow
-6.08B-5.75B-5.58B-2.27B-2.94B-2.11B
Financing Cash Flow
-3.49B2.10B-5.00B-3.36B-1.42B-203.00M

Woodside Energy Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.94
Price Trends
50DMA
21.25
Positive
100DMA
22.38
Positive
200DMA
23.11
Negative
Market Momentum
MACD
0.44
Negative
RSI
62.78
Neutral
STOCH
91.60
Negative
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 22.94 is above the 20-day moving average (MA) of 21.94, above the 50-day MA of 21.25, and below the 200-day MA of 23.11, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWDS
74
Outperform
AU$43.51B8.0310.07%8.15%0.71%120.95%
AUBHP
72
Outperform
$194.01B11.2226.20%5.16%-2.47%57.01%
AUORG
66
Neutral
AU$18.18B12.8414.75%5.52%8.09%-13.99%
AUSTO
63
Neutral
$21.32B11.497.94%5.31%-7.99%-12.27%
57
Neutral
$7.23B3.16-4.49%5.63%0.82%-49.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WDS
Woodside Energy Group
22.94
-2.22
-8.82%
AU:BHP
BHP Group Ltd
38.23
-3.43
-8.23%
AU:ORG
Origin Energy Limited
10.59
1.06
11.15%
AU:STO
Santos Limited
6.58
-0.54
-7.56%

Woodside Energy Group Corporate Events

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.

Woodside Energy to Divest Greater Angostura Assets to Perenco
Mar 28, 2025

Woodside Energy Group has agreed to sell its Greater Angostura assets in Trinidad and Tobago to Perenco for $206 million. This divestment is part of Woodside’s strategy to simplify its portfolio and focus on core priorities, providing immediate cash flow to support ongoing investments and shareholder returns. The transaction, expected to close in the third quarter of 2025, underscores Woodside’s disciplined approach to portfolio management and its commitment to delivering sustainable returns. The Greater Angostura assets have been significant contributors to Trinidad and Tobago’s economy, and the transition to Perenco is anticipated to continue this legacy.

AustralianSuper Increases Stake in Woodside Energy Group
Mar 17, 2025

AustralianSuper Pty Ltd has increased its voting power in Woodside Energy Group Ltd from 6.14% to 7.15% as of March 11, 2025. This change in substantial holding indicates a growing interest and investment in Woodside Energy, potentially impacting the company’s strategic decisions and market influence.

Woodside Energy Issues Unquoted Equity Securities to Employees
Mar 12, 2025

Woodside Energy Group Ltd announced the issuance of 98,393 unquoted equity securities under an employee incentive scheme. This move is part of their strategy to enhance employee engagement and align their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and stakeholder relations positively.

Woodside Energy Announces Change in Director’s Interest
Mar 12, 2025

Woodside Energy Group Ltd has announced a change in the director’s interest notice, specifically concerning Marguerite (Meg) Eileen O’Neill. The update reveals that 16,391 rights under the Executive Incentive Scheme (EIS) have lapsed, reflecting a change in the director’s relevant interests in securities. This announcement is part of the company’s compliance with listing rules and provides transparency regarding the director’s holdings, which is crucial for stakeholders and investors monitoring corporate governance and executive incentives.

Woodside Energy Updates Dividend Distribution Details
Mar 12, 2025

Woodside Energy Group has updated its previous announcement regarding the dividend distribution for the period ending December 31, 2024. The update includes details on the exchange rates and methodology used for converting the dividend into various payment currencies, which is crucial for stakeholders to understand the financial implications of their investments.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.