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Woodside Energy Group (WDS)
NYSE:WDS
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Woodside Energy Group
(NYSE:WDS)
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Rating:74Outperform
Price Target:
$18.00
â–²(17.34% Upside)
Woodside Energy Group's overall stock score reflects strong financial performance and attractive valuation, bolstered by a positive earnings call. However, technical analysis indicates some short-term bearish momentum, and challenges in revenue growth and cash flow generation pose potential risks. The company's strategic focus on long-term growth and shareholder returns remains a positive factor.
Woodside Energy Group (WDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.60B
Dividend Yield6.91%
Average Volume (3M)714.30K
Price to Earnings (P/E)9.7
Beta (1Y)1.00
Revenue Growth15.31%
EPS Growth58.83%
CountryUS
Employees4,718
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.65
Shares Outstanding1,898,749,800
10 Day Avg. Volume864,192
30 Day Avg. Volume714,297
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit7.94
Enterprise Value/Ebitda4.61
Forecast
1Y Price Target
$18.00Price Target Upside17.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 generates revenue primarily through the sale of oil and gas products. The company capitalizes on its extensive reserves and production capabilities, focusing on LNG as a key revenue driver due to its growing demand in Asia and other markets. Revenue streams are diversified through long-term contracts and spot market sales, allowing the company to maintain a steady cash flow. Additionally, Woodside engages in partnerships and joint ventures with other energy companies and stakeholders, enhancing its operational efficiency and market reach. Factors contributing to its earnings include fluctuating global oil and gas prices, production levels, and the successful execution of exploration and development projects.
Woodside Energy Group Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial performance with strategic investments and operational excellence driving growth and shareholder value. Cost reductions and record production levels were key highlights. However, regulatory delays and unexpected challenges in decommissioning posed concerns. The sentiment is cautiously optimistic with a focus on long-term growth and sustainability.Q2-2025 Updates
Positive Updates
Strong Half-Year Financial Performance
Woodside Energy reported a net profit after tax of more than $1.3 billion, with an EBITDA margin of 70%, despite lower realized prices and inflationary pressures.
Record Production Levels
Achieved half-year production of 548,000 barrels of oil equivalent per day and total production of 99.2 million barrels of oil equivalent, with exceptional performance at Sangomar contributing significantly.
Cost Reduction Success
Reduced unit production costs by 7%, bringing the average to $7.70 per barrel of oil equivalent, which is attributed to increased efficiency and strategic cost control measures.
Strategic Investment Decisions
Final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse, with construction of Train 1 already 22% complete.
Significant Safety Achievements
No high consequence injuries or significant environmental impacts recorded during the half, with 100,000 hours worked without lost time injuries at Northwest Shelf project.
Dividend Policy and Shareholder Returns
Announced a fully franked interim dividend of $0.53 per share, representing a half-year annualized yield of 6.9%, maintaining a payout at the top end of the range.
Negative Updates
Decommissioning Challenges
Unexpected challenges in the removal of equipment at Griffin, Minerva, and Stybarrow fields led to increased costs and delays in decommissioning activities.
Regulatory Delays
Frustration expressed over the lack of final federal approval for the Northwest Shelf extension, impacting productivity and project timelines.
Beaumont Ammonia Project Delay
First ammonia production is delayed to late 2025 due to construction delays, impacting the completion payment timeline.
Company Guidance
During the Woodside Energy Group Limited Half Year Results 2025 Conference Call, CEO Meg O’Neill and CFO Graham Tiver presented robust financial and operational results. The company reported a net profit after tax exceeding $1.3 billion and strong production figures of 548,000 barrels of oil equivalent per day, totaling 99.2 million barrels of oil equivalent. Woodside achieved a 7% reduction in unit production costs, with marketing and trading activities contributing $144 million, representing approximately 8% of total EBIT. The company declared a fully franked interim dividend of $0.53 per share, aligning with the upper end of its payout range. Woodside advanced major projects, including Scarborough, which is 86% complete, and Louisiana LNG, targeting first LNG in 2029 with a construction cost of around $960 per tonne. The company maintained strong safety records with no high consequence injuries, and its balance sheet remains well-positioned with gearing within the target range of 10% to 20%.Woodside Energy Group Financial Statement Overview
Summary
Woodside Energy Group shows strong profitability and a solid equity base, with a high EBITDA margin and improved net profit margin. However, declining revenues and cash flow generation pose risks.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.77B | 13.18B | 13.99B | 16.82B | 6.96B | 3.60B |
| Gross Profit | 5.17B | 5.68B | 6.47B | 10.28B | 3.12B | 615.00M |
| EBITDA | 8.91B | 9.50B | 8.70B | 10.41B | 4.12B | -3.32B |
| Net Income | 2.95B | 3.57B | 1.66B | 6.50B | 1.98B | -4.03B |
Balance Sheet | ||||||
| Total Assets | 64.88B | 61.26B | 55.36B | 59.32B | 26.47B | 24.62B |
| Cash, Cash Equivalents and Short-Term Investments | 4.88B | 4.11B | 1.95B | 6.88B | 3.35B | 3.78B |
| Total Debt | 13.55B | 11.62B | 6.50B | 6.45B | 6.61B | 7.40B |
| Total Liabilities | 26.37B | 25.11B | 20.19B | 22.19B | 12.24B | 11.75B |
| Stockholders Equity | 35.64B | 35.40B | 34.40B | 36.34B | 13.44B | 12.07B |
Cash Flow | ||||||
| Free Cash Flow | -1.89B | 945.00M | 854.00M | 5.67B | 1.17B | -96.00M |
| Operating Cash Flow | 6.48B | 5.85B | 6.14B | 8.81B | 3.79B | 1.85B |
| Investing Cash Flow | -6.88B | -5.75B | -5.58B | -2.27B | -2.94B | -2.11B |
| Financing Cash Flow | 3.41B | 2.10B | -5.00B | -3.36B | -1.42B | -203.00M |
Woodside Energy Group Technical Analysis
Negative
15.34
Price Trends
16.42
Negative
15.43
Negative
14.68
Positive
Market Momentum
-0.36
Positive
36.12
Neutral
11.90
Positive
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 15.34 is below the 20-day moving average (MA) of 16.26, below the 50-day MA of 16.42, and above the 200-day MA of 14.68, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 36.12 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 119.44B | 12.54 | 13.96% | 3.26% | 2.45% | -17.08% | |
76 Outperform | 63.72B | 11.25 | 19.60% | 3.29% | -5.42% | -20.52% | |
74 Outperform | $28.60B | 9.70 | 8.33% | 6.91% | 15.31% | 58.83% | |
74 Outperform | 22.35B | 7.72 | 18.88% | 2.67% | 10.98% | -19.25% | |
72 Outperform | 33.13B | 27.41 | 5.34% | 1.19% | 59.12% | 12.12% | |
71 Outperform | 46.16B | 27.28 | 8.91% | 2.00% | -1.66% | -58.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
WDS
Woodside Energy Group
15.34
-0.38
-2.42%
COP
Conocophillips
95.63
-3.48
-3.51%
DVN
Devon Energy
35.21
-1.63
-4.42%
EOG
EOG Resources
116.70
0.08
0.07%
EQT
EQT
53.08
18.04
51.48%
OXY
Occidental Petroleum
46.89
-2.01
-4.11%
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.