Woodside Energy Group (WDS) AI Stock Analysis

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Woodside Energy Group

(NYSE:WDS)

Rating:80Outperform

Price Target:

$19.50

▲(15.18% Upside)

The overall stock score of 80.4 reflects Woodside Energy Group's strong financial and technical performance, bolstered by an attractive valuation. Despite the risks associated with declining revenues and potential overbought conditions, the company's profitability, operational efficiency, and solid equity base make it a compelling investment.

Woodside Energy Group (WDS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$32.80B

Dividend Yield7.09%

Average Volume (3M)630.43K

Price to Earnings (P/E)9.2

Beta (1Y)0.99

Revenue Growth-0.93%

EPS Growth115.30%

CountryUS

Employees4,718

SectorEnergy

Sector Strength52

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)N/A

Shares Outstanding1,898,749,800

10 Day Avg. Volume694,987

30 Day Avg. Volume630,430

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.28

Enterprise Value/Revenue3.19

Enterprise Value/Gross Profit7.41

Enterprise Value/Ebitda5.16

Forecast

1Y Price Target

$17.50

Price Target Upside3.37% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Woodside Energy Group Business Overview & Revenue Model

Company DescriptionWoodside Energy Group Ltd (WDS) is a prominent Australian energy company headquartered in Perth, Western Australia. The company specializes in the exploration, development, production, and marketing of oil and natural gas. Woodside's operations are primarily concentrated in the North West Shelf, Pluto LNG, and other key assets in Australia and globally. It is recognized for its expertise in liquefied natural gas (LNG) production and is one of the leading LNG producers in the world.

How the Company Makes MoneyWoodside Energy Group generates revenue through the extraction and sale of oil and natural gas products. Its key revenue streams include the production and export of liquefied natural gas (LNG), natural gas, and crude oil. The company operates several large-scale LNG projects, which are central to its earnings. Additionally, Woodside engages in long-term sales agreements and strategic partnerships with international buyers, facilitating stable revenue flows. The company also invests in exploration and development activities to expand its resource base and ensure sustainable future earnings.

Woodside Energy Group Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q4-2024)

% Change Since: 32.27%|

Next Earnings Date:Aug 19, 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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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.

Woodside Energy Group Financial Statement Overview

Summary

Woodside Energy Group demonstrates a strong financial position with noteworthy profitability and a solid equity base. However, declining revenues and cash flow generation pose potential risks. The company exhibits good control over costs and liabilities, but needs to address revenue growth challenges to maintain its financial health.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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
EBITDA	9.50B	8.70B	10.41B	4.12B	-3.32B
Net Income	3.57B	1.66B	6.50B	1.98B	-4.03B
Balance Sheet
Total Assets	61.26B	55.36B	59.32B	26.47B	24.62B
Cash, Cash Equivalents and Short-Term Investments	4.11B	1.95B	6.88B	3.35B	3.78B
Total Debt	11.62B	6.50B	6.45B	6.61B	7.40B
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

Technical Analysis Sentiment

Positive

Last Price16.93

Price Trends

50DMA

15.80

Positive

100DMA

14.64

Positive

200DMA

14.85

Positive

Market Momentum

MACD

0.43

Negative

RSI

64.54

Neutral

STOCH

47.35

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDS, the sentiment is Positive. The current price of 16.93 is above the 20-day moving average (MA) of 16.45, above the 50-day MA of 15.80, and above the 200-day MA of 14.85, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 47.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WDS.

Woodside Energy Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDS	80 Outperform	$32.80B	9.15	10.22%	7.09%	-0.93%	115.30%
FANG	76 Outperform	$42.56B	10.36	13.57%	3.60%	51.78%	-27.22%
CTRA	76 Outperform	$18.56B	11.66	11.42%	3.63%	10.33%	-0.13%
OXY	74 Outperform	$42.40B	17.44	9.43%	2.12%	1.35%	-33.30%
DVN	72 Outperform	$20.75B	7.27	20.60%	3.53%	12.06%	-16.37%
EQT	70 Outperform	$32.26B	27.90	6.26%	1.20%	59.12%	12.12%
Sector *	56 Neutral	C$4.11B	-0.17	0.41%	6.51%	5.45%	-66.94%

* Energy Sector Average

Performance Comparison

WDS

Woodside Energy Group

17.21

1.86

12.12%

CTRA

Coterra Energy

24.32

1.13

4.87%

DVN

Devon Energy

32.31

-11.39

-26.06%

EQT

51.69

21.04

68.65%

OXY

Occidental Petroleum

43.08

-14.32

-24.95%

FANG

Diamondback

145.68

-45.80

-23.92%

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: Jul 26, 2025