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Woodside Energy Group (WDS)
NYSE:WDS
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Woodside Energy Group
(NYSE:WDS)
Rating:75Outperform
Price Target:
$17.50
â–²(12.69%Upside)
Woodside Energy Group (WDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.81B
Dividend Yield6.74%
Average Volume (3M)996.95K
Price to Earnings (P/E)8.3
Beta (1Y)1.00
Revenue Growth-0.93%
EPS Growth115.30%
CountryUS
Employees4,718
SectorEnergy
Sector Strength50
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,898,749,800
10 Day Avg. Volume505,319
30 Day Avg. Volume996,954
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)0.85
Price to Sales (P/S)0.00
P/FCF Ratio84.16
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit6.60
Enterprise Value/Ebitda1.03
Forecast
1Y Price Target
$17.50Price Target Upside12.69% 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: 21.33%|
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
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 |
| 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
Neutral
15.53
Price Trends
14.87
Positive
14.32
Positive
14.86
Positive
Market Momentum
0.19
Positive
50.73
Neutral
57.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDS, the sentiment is Neutral. The current price of 15.53 is below the 20-day moving average (MA) of 15.87, above the 50-day MA of 14.87, and above the 200-day MA of 14.86, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 57.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WDS.
Woodside Energy Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $21.32B | 7.55 | 20.88% | 2.89% | 12.06% | -16.37% | |
76 Outperform | $36.36B | 100.50 | 2.06% | 1.08% | 39.56% | -59.84% | |
76 Outperform | $19.42B | 14.86 | 9.40% | 3.46% | 10.33% | -0.13% | |
75 Outperform | $42.17B | 8.83 | 14.26% | 2.82% | 47.89% | -7.87% | |
75 Outperform | $29.81B | 8.34 | 10.23% | 6.74% | -0.93% | 115.30% | |
71 Outperform | $44.35B | 18.24 | 9.43% | 2.13% | 1.35% | -33.30% | |
52 Neutral | C$2.96B | -1.04 | -3.46% | 5.84% | 3.01% | -47.13% |
* Energy Sector Average
Performance Comparison
WDS
Woodside Energy Group
15.53
-2.93
-15.87%
CTRA
Coterra Energy
24.64
-1.47
-5.63%
DVN
Devon Energy
32.17
-14.96
-31.74%
EQT
EQT
58.24
23.18
66.12%
OXY
Occidental Petroleum
42.69
-19.25
-31.08%
FANG
Diamondback
137.88
-66.64
-32.58%
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.