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Woodside Energy Group (WDS)
NYSE:WDS
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Woodside Energy Group
(NYSE:WDS)
73Outperform
Woodside Energy Group (WDS) vs. S&P 500 (SPY)
Market Cap
$24.32B
Dividend Yield9.21%
Average Volume (3M)1.21M
Price to Earnings (P/E)6.8
Beta (1Y)1.14
Revenue Growth-0.93%
EPS Growth115.30%
CountryUS
Employees4,718
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.88
Shares Outstanding1,898,749,800
10 Day Avg. Volume1,641,702
30 Day Avg. Volume1,208,848
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)2.05
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.80Price Target Upside110.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Woodside Energy Group Business Overview & Revenue Model
Company DescriptionWoodside Energy Group Ltd (WDS) is a leading Australian oil and gas company engaged in the exploration, development, production, and marketing of hydrocarbons. The company is primarily involved in the production of liquefied natural gas (LNG), crude oil, and natural gas. Woodside operates several major projects across key regions including Australia and has a stake in international ventures, focusing on energy solutions that meet global demands while committing to sustainable practices.
How the Company Makes MoneyWoodside Energy Group generates revenue through the exploration and production of oil and gas resources, with a significant portion derived from the sale of liquefied natural gas (LNG). The company's key revenue streams include long-term LNG sales contracts, spot sales, and the export of crude oil and natural gas. Woodside leverages strategic partnerships and joint ventures with other energy companies to enhance its production capabilities and expand its market reach. The company's earnings are also influenced by global energy prices, production volumes, and operational efficiencies, alongside its investment in new projects and technologies aimed at reducing carbon emissions and optimizing resource extraction.
Woodside Energy Group Financial Statement Overview
Summary
Woodside Energy Group demonstrates strong profitability and a solid equity base, but faces challenges with declining revenues and cash flow generation. The company shows effective cost control and moderate leverage, yet needs to address revenue growth to maintain financial health.Income Statement
Woodside Energy Group's income statement shows mixed performance. The gross profit margin in 2024 was approximately 43.06%, demonstrating strong cost management relative to revenue. However, revenue has declined from $16.8 billion in 2022 to $13.2 billion in 2024, indicating a negative growth trend. The net profit margin improved significantly to 27.11% in 2024, reflecting effective control over expenses and increased profitability. The EBIT figure for 2024 is zero, which is unusual, and the EBITDA margin is high at 71.81%, suggesting robust operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a solid financial structure with a debt-to-equity ratio of approximately 0.33 in 2024, indicating moderate leverage. The equity ratio is 57.78%, showing a strong equity position in total assets. Return on Equity (ROE) improved significantly to 10.10% in 2024, highlighting enhanced profitability. While the company maintains a healthy equity base, the decrease in total assets from 2022 to 2024 suggests some asset divestment or depreciation.80
Positive
Cash Flow
Cash flow analysis shows that operating cash flow decreased to $5.85 billion in 2024 from $8.81 billion in 2022, indicating a potential challenge in cash generation from operations. The free cash flow to net income ratio is relatively low at 0.26, suggesting that a smaller portion of net income is being converted into free cash flow. Despite this, the company has managed its financing activities well, reflected in positive free cash flow in recent years.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.18B | 13.99B | 16.82B | 6.96B | 3.60B | Gross Profit |
| 5.68B | 6.47B | 10.28B | 3.12B | 615.00M | EBIT |
| 6.30B | 5.74B | 8.34B | 3.33B | 102.00M | EBITDA |
| 9.50B | 8.70B | 10.41B | 4.12B | -3.32B | Net Income Common Stockholders |
| 3.57B | 1.66B | 6.50B | 1.98B | -4.03B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.11B | 1.95B | 6.88B | 3.35B | 3.78B | Total Assets |
| 61.26B | 55.36B | 59.32B | 26.47B | 24.62B | Total Debt |
| 11.62B | 6.50B | 6.45B | 6.61B | 7.40B | Net Debt |
| 7.70B | 4.76B | 247.00M | 3.58B | 3.79B | Total Liabilities |
| 25.11B | 20.19B | 22.19B | 12.24B | 11.75B | Stockholders Equity |
| 35.40B | 34.40B | 36.34B | 13.44B | 12.07B |
| Cash Flow | Free Cash Flow | |||
| 945.00M | 854.00M | 5.67B | 1.17B | -96.00M | Operating Cash Flow |
| 5.85B | 6.14B | 8.81B | 3.79B | 1.85B | Investing Cash Flow |
| -5.75B | -5.58B | -2.27B | -2.94B | -2.11B | Financing Cash Flow |
| 2.10B | -5.00B | -3.36B | -1.42B | -203.00M |
Woodside Energy Group Technical Analysis
Negative
12.71
Price Trends
14.07
Negative
14.56
Negative
15.44
Negative
Market Momentum
-0.53
Negative
42.41
Neutral
83.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDS, the sentiment is Negative. The current price of 12.71 is below the 20-day moving average (MA) of 13.29, below the 50-day MA of 14.07, and below the 200-day MA of 15.44, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDS.
Woodside Energy Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $19.75B | 17.19 | 8.56% | 3.29% | -3.92% | -29.44% | |
75 Outperform | $19.67B | 6.65 | 21.77% | 4.12% | 3.00% | -21.63% | |
73 Outperform | $24.32B | 6.80 | 10.23% | 9.21% | -0.93% | 115.30% | |
68 Neutral | $37.94B | 8.31 | 12.20% | 4.51% | 31.55% | -9.00% | |
68 Neutral | $37.32B | 16.25 | 8.88% | 2.27% | -4.35% | -37.69% | |
67 Neutral | $29.66B | 110.78 | 1.30% | 1.24% | 3.00% | -90.88% | |
55 Neutral | $6.97B | 3.35 | -6.10% | 6.00% | -0.44% | -51.04% |
* Energy Sector Average
Performance Comparison
WDS
Woodside Energy Group
12.71
-4.44
-25.89%
CTRA
Coterra Energy
24.81
-2.42
-8.89%
DVN
Devon Energy
31.20
-19.70
-38.70%
EQT
EQT
48.57
11.20
29.97%
OXY
Occidental Petroleum
39.02
-27.20
-41.08%
FANG
Diamondback
132.35
-65.22
-33.01%
Woodside Energy Group Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -9.99% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial and operational performance by Woodside, with significant progress on major projects and strategic initiatives. However, safety challenges and regulatory delays present notable concerns.Highlights
Record Annual Production
Woodside achieved record annual production in 2024 of 194 million barrels of oil equivalent, reaching the top end of their full-year guidance range.
Significant Financial Performance
The company reported a net profit after tax of $3.6 billion, a significant increase from 2023, with earnings per share of U.S. 189 cents.
Dividend and Cost Efficiency
Declared a fully franked total full-year dividend of U.S. 122 cents per share, at the top of the payout range, with unit production cost reduced to $8.10 per barrel of oil equivalent.
Progress on Major Projects
Scarborough project is 80% complete, on track for first LNG cargo in 2026. Trion is on track for first oil in 2028. Sangomar achieved early production performance exceeding expectations.
Investment in Climate Commitments
Reduced net equity Scope 1 and 2 emissions by 14% below the starting base and made strategic acquisitions like Beaumont New Ammonia to meet climate targets.
Successful Strategic Partnerships
Welcomed strategic partners LNG Japan and JERA to the Scarborough joint venture, demonstrating the ability to attract high-quality partners.
Strong Market Position
Woodside is positioned to meet global energy needs and drive shareholder value, with a focus on LNG playing a crucial role in the energy transition.
Community and Economic Contributions
Invested $7.9 billion in local economies and contributed significantly to government revenues, being the fifth largest taxpayer in Australia.
Lowlights
Safety Challenges
A tragic death of a construction contractor employee at the Beaumont New Ammonia project highlighted ongoing safety challenges.
Approval Delays
Delays in federal approval for the Northwest Shelf project life extension, impacting confidence in future investment decisions.
Uncertainty in U.S. Oil Production
A modest 2P reserve cut to the Mad Dog project and concerns over subsurface challenges.
Company Guidance
In the 2024 full-year results call for Woodside Energy Group Limited, CEO Meg O’Neill highlighted the company’s strong performance, driven by record annual production of 194 million barrels of oil equivalent, at the high end of their guidance. Financially, Woodside reported a net profit after tax of $3.6 billion, an increase from 2023, with earnings per share of 189 cents. The company maintained a fully franked dividend of 122 cents per share, positioning it at the top of its payout range. Woodside’s cost efficiency improved, with unit production costs reduced to $8.10 per barrel, while net equity Scope 1 and 2 emissions were cut by 14% from the baseline. The call underscored major project milestones, including progress at Scarborough, which is 80% complete and targeted for first LNG cargo in 2026, and the Beaumont New Ammonia project, now 83% complete. The company anticipates a compound annual growth rate of 4% to 5% in portfolio sales from 2024 to 2030, reflecting robust LNG demand, especially in Asia. These efforts are expected to yield significant free cash flow over the next decade, bolstered by strategic acquisitions and partnerships.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.